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Duos Technologies Group Reports 4th Quarter and FY 2024 Results

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Duos Technologies Group (DUOT) reported Q4 and FY 2024 results, marking a transformative year with significant developments. The company secured its largest-ever contract - a $42 million Asset Management Agreement with New APR Energy and Fortress Investment Group to manage 850MW of Gas-Powered Turbines.

Q4 2024 revenue decreased 4% to $1.46 million, with recurring services revenue up 9%. Full-year 2024 revenue declined 3% to $7.28 million. The company reported a Q4 net loss of $3.41 million and full-year net loss of $10.76 million.

Notable achievements include:

  • Secured $5 million advance payment for future services
  • Acquired six Edge Data Centers for Texas deployments
  • Completed $7.5 million ATM capital raise
  • Scanned nearly 10 million railcar images across North America

Looking ahead, Duos projects 2025 revenue between $28-30 million, representing 285-312% growth, with current backlog at $50.5 million.

Duos Technologies Group (DUOT) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, segnando un anno trasformativo con sviluppi significativi. L'azienda ha ottenuto il suo contratto più grande di sempre - un Accordo di Gestione degli Asset del valore di 42 milioni di dollari con New APR Energy e Fortress Investment Group per gestire 850MW di turbine a gas.

Le entrate del Q4 2024 sono diminuite del 4% a 1,46 milioni di dollari, con le entrate da servizi ricorrenti aumentate del 9%. Le entrate dell'anno intero 2024 sono diminuite del 3% a 7,28 milioni di dollari. L'azienda ha riportato una perdita netta di 3,41 milioni di dollari nel Q4 e una perdita netta annuale di 10,76 milioni di dollari.

Tra i risultati notevoli si includono:

  • Ottenuto un pagamento anticipato di 5 milioni di dollari per servizi futuri
  • Acquisiti sei Edge Data Centers per implementazioni in Texas
  • Completato un aumento di capitale di 7,5 milioni di dollari tramite ATM
  • Scansionati quasi 10 milioni di immagini di vagoni ferroviari in tutta l'America del Nord

Guardando al futuro, Duos prevede entrate per il 2025 tra 28 e 30 milioni di dollari, rappresentando una crescita del 285-312%, con un backlog attuale di 50,5 milioni di dollari.

Duos Technologies Group (DUOT) reportó los resultados del cuarto trimestre y del año fiscal 2024, marcando un año transformador con desarrollos significativos. La empresa aseguró su contrato más grande de la historia - un Acuerdo de Gestión de Activos de 42 millones de dólares con New APR Energy y Fortress Investment Group para gestionar 850MW de turbinas a gas.

Los ingresos del Q4 2024 disminuyeron un 4% a 1,46 millones de dólares, con los ingresos por servicios recurrentes aumentando un 9%. Los ingresos del año completo 2024 cayeron un 3% a 7,28 millones de dólares. La empresa reportó una pérdida neta de 3,41 millones de dólares en el Q4 y una pérdida neta anual de 10,76 millones de dólares.

Logros notables incluyen:

  • Asegurado un pago anticipado de 5 millones de dólares por servicios futuros
  • Adquiridos seis Edge Data Centers para implementaciones en Texas
  • Completado un aumento de capital de 7,5 millones de dólares a través de un cajero automático
  • Escaneadas casi 10 millones de imágenes de vagones de ferrocarril en toda América del Norte

Mirando hacia adelante, Duos proyecta ingresos para 2025 entre 28 y 30 millones de dólares, representando un crecimiento del 285-312%, con un backlog actual de 50,5 millones de dólares.

Duos Technologies Group (DUOT)는 2024년 4분기 및 연간 결과를 보고하며, 중요한 발전을 이룬 변혁의 해를 기념했습니다. 이 회사는 New APR Energy 및 Fortress Investment Group과 함께 850MW의 가스 발전 터빈을 관리하기 위한 4,200만 달러 규모의 자산 관리 계약을 체결했습니다.

2024년 4분기 매출은 146만 달러로 4% 감소했으며, 반복 서비스 매출은 9% 증가했습니다. 2024년 전체 매출은 728만 달러로 3% 감소했습니다. 이 회사는 4분기 순손실이 341만 달러, 연간 순손실이 1,076만 달러라고 보고했습니다.

주목할 만한 성과로는:

  • 미래 서비스에 대한 500만 달러의 선급금 확보
  • 텍사스 배치를 위한 6개의 엣지 데이터 센터 인수
  • 750만 달러 규모의 ATM 자본 조달 완료
  • 북미 전역에서 거의 1,000만 개의 화물차 이미지를 스캔함

앞을 내다보며, Duos는 2025년 매출을 2,800만에서 3,000만 달러 사이로 예상하며, 이는 285-312%의 성장을 나타내며, 현재 백로그는 5,050만 달러입니다.

Duos Technologies Group (DUOT) a rapporté les résultats du quatrième trimestre et de l'année fiscale 2024, marquant une année transformative avec des développements significatifs. L'entreprise a obtenu son plus grand contrat à ce jour - un Accord de Gestion d'Actifs de 42 millions de dollars avec New APR Energy et Fortress Investment Group pour gérer 850 MW de turbines à gaz.

Les revenus du Q4 2024 ont diminué de 4% pour atteindre 1,46 million de dollars, avec des revenus de services récurrents en hausse de 9%. Les revenus de l'année entière 2024 ont diminué de 3% pour atteindre 7,28 millions de dollars. L'entreprise a déclaré une perte nette de 3,41 millions de dollars au Q4 et une perte nette annuelle de 10,76 millions de dollars.

Les réalisations notables incluent:

  • Obtention d'un paiement anticipé de 5 millions de dollars pour des services futurs
  • Acquisition de six Edge Data Centers pour des déploiements au Texas
  • Achèvement d'une levée de fonds de 7,5 millions de dollars via un guichet automatique
  • Numérisation de près de 10 millions d'images de wagons de chemin de fer à travers l'Amérique du Nord

En regardant vers l'avenir, Duos projette des revenus pour 2025 entre 28 et 30 millions de dollars, représentant une croissance de 285-312%, avec un carnet de commandes actuel de 50,5 millions de dollars.

Duos Technologies Group (DUOT) hat die Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 bekannt gegeben, was ein transformierendes Jahr mit bedeutenden Entwicklungen markiert. Das Unternehmen sicherte sich den größten Vertrag seiner Geschichte - einen Vereinbarung zur Vermögensverwaltung im Wert von 42 Millionen Dollar mit New APR Energy und Fortress Investment Group zur Verwaltung von 850 MW Gas-Turbinen.

Die Einnahmen im Q4 2024 sanken um 4% auf 1,46 Millionen Dollar, während die Einnahmen aus wiederkehrenden Dienstleistungen um 9% stiegen. Die Einnahmen für das gesamte Jahr 2024 gingen um 3% auf 7,28 Millionen Dollar zurück. Das Unternehmen berichtete von einem Nettoverlust von 3,41 Millionen Dollar im Q4 und einem Nettoverlust von 10,76 Millionen Dollar für das gesamte Jahr.

Bemerkenswerte Erfolge umfassen:

  • Erhalt einer Vorauszahlung von 5 Millionen Dollar für zukünftige Dienstleistungen
  • Erwerb von sechs Edge Data Centers für Einsätze in Texas
  • Abschluss einer Kapitalerhöhung von 7,5 Millionen Dollar über einen Geldautomaten
  • Scannen von fast 10 Millionen Eisenbahnwagenbildern in ganz Nordamerika

Für die Zukunft erwartet Duos Einnahmen für 2025 zwischen 28 und 30 Millionen Dollar, was einem Wachstum von 285-312% entspricht, mit einem aktuellen Auftragsbestand von 50,5 Millionen Dollar.

Positive
  • Secured largest-ever contract worth $42M with APR Energy including 5% equity stake
  • Significant backlog of $50.5M entering 2025
  • Projected 285-312% revenue growth for 2025
  • Strengthened balance sheet with $7.5M ATM raise and $5M advance payment
  • 9% increase in recurring services revenue in Q4 2024
Negative
  • Q4 2024 revenue decreased 4% to $1.46M
  • Full-year 2024 revenue declined 3% to $7.28M
  • Q4 2024 gross margin declined 209% to negative $330,000
  • Net loss increased to $3.41M in Q4 2024 from $3.16M in Q4 2023
  • Full-year gross margin decreased 64% to $469,000

Insights

Duos Technologies' Q4 and full-year 2024 results reflect a company in transition, with current financial performance taking a backseat to strategic positioning for substantial future growth. The 4% decrease in Q4 revenue to $1.46 million and negative gross margin of $330,000 are concerning at first glance. However, these metrics are heavily influenced by timing issues with major projects and the provision of power consulting work at cost that's strategically setting the stage for future profits.

The game-changer here is the Asset Management Agreement valued at up to $42 million to manage 850MW of Gas-Powered Turbines - the largest contract in company history. This agreement, which includes a 5% equity stake in New APR Energy's parent, signals a transformative expansion beyond Duos' traditional rail inspection technology.

With $6.27 million in cash (a 157% increase year-over-year) and a substantial $50.5 million backlog, Duos has strengthened its balance sheet while building a revenue pipeline that supports its aggressive 2025 guidance of $28-30 million - representing potential growth of over 300%. The successful ATM capital raise at prices exceeding $5.00 per share provides additional working capital for the company's expansion into Edge Data Centers and power solutions markets.

Looking beneath the surface numbers, Duos is effectively executing a multi-vertical strategy that leverages its core technological capabilities across complementary markets. The temporary margin compression reflects investments in future growth rather than fundamental business weakness. For a company with a $56 million market cap projecting $28-30 million in 2025 revenue, the current valuation appears to discount the significant growth trajectory ahead.

Duos Technologies' strategic expansion beyond its rail technology foundation represents a well-calculated diversification into high-growth markets where it can leverage existing expertise in AI, edge computing, and remote monitoring. The acquisition of six Edge Data Centers and initial deployment in Amarillo establishes a beachhead in the lucrative Tier 3 and Tier 4 data center markets, where demand for distributed computing power continues to surge as AI applications proliferate.

Particularly noteworthy is the Pampa, Texas data center development with 500MW power capacity targeting AI hyperscalers. This positions Duos at the intersection of two critical technology bottlenecks: computing infrastructure and power generation. The company's dual focus on edge data centers and power solutions creates natural synergies that few competitors can match.

The core RIP® technology business continues to build intellectual property value, with new patents and enforcement actions against potential infringement. With 10 million railcar images processed across 700,000 unique railcars (representing 44% of North America's freight car population), Duos has built a formidable dataset for AI algorithm training that creates substantial barriers to entry.

The transition toward higher-margin AI software and support services indicates a classic technology business model evolution from hardware to recurring software revenue. While this transition temporarily impacts financial results, it sets the foundation for improved profitability. The 31% increase in services and consulting revenues validates this strategic shift.

Duos' expansion strategy leverages computational expertise in multiple domains while maintaining focus on industrial and infrastructure applications where AI can deliver immediate value. The deliberately paced deployment plan for 15 Edge Data Center pods by year-end 2025 balances growth ambitions with operational realities, though management indicates potential acceleration based on strong demand signals.

Issues guidance following a transformative year with the Company adding two new business lines, significantly strengthening the Balance Sheet and demonstrating enhanced operational capabilities for additional services and consulting related to the fast power business.

JACKSONVILLE, Fla., March 31, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) a provider of machine vision and artificial intelligence that analyzes fast moving vehicles, Edge Data Centers and power solutions, reported financial results for the fourth quarter (“Q4 2024”) and full year ended December 31, 2024.

DUOT_PR_Q4FY2024EarningsCall_L

Fourth Quarter 2024 and Recent Operational Highlights

  • Signed Asset Management Agreement (“AMA”) with New APR Energy and Fortress Investment Group value at up to $42 million to manage 850MW of Gas-Powered Turbines. This agreement includes a 5% equity stake in the parent of New APR Energy and is the largest contract in the Company’s history.
  • Secured a $5 million advance payment for future services related to the AMA providing low-cost interim working capital as the Company grows.
  • Initiated marketing campaign targeted at the Tier 3 and Tier 4 data center markets for the provision of Duos Edge AI Edge Data Centers (“EDC”s).
  • Acquired six EDCs for initial deployments to Texas Regional Schools as “anchor” locations for service provisions.
  • Installed an initial EDC site in Amarillo, Texas with contract to include primary power for the support of installation site in addition to backup power.
  • Developing a high-density Data Center Park in Pampa, Texas in cooperation with New APR Energy and the Pampa Energy Center. The project includes the deployment of two Edge Data Centers and up to 500MW of bridging and permanent power, to support growing AI hyperscalers and HPC demands.
  • Added further intellectual property with patents covering the Railcar Inspection Portal (“RIP®”) and issued potential “IP Infraction” letters to a Class 1 railroad and its technology partner.
  • Scanned almost 10 million railcar images on over 700,000 unique railcars for the full year. This metric encompasses all railcars scanned at locations across the U.S., Canada, and Mexico, representing approximately 44% of the total freight car population in North America.
  • Entering 2025, the Company estimates $50.5 million of revenue in backlog including near-term extensions.
  • Completed an At-The-Market (“ATM”) capital raise for approximately $7.5 million with an average price of greater than $5.00 per share and low issuance costs.

Fourth Quarter 2024 Financial Results
It should be noted that the following Financial Results represent the consolidation of the Company with its subsidiaries Duos Technologies, Duos Edge AI, Inc., and Duos Energy Corporation.

Total revenue for Q4 2024 decreased 4% to $1.46 million compared to $1.53 million in the fourth quarter of 2023 (“Q4 2023”). Total revenue for Q4 2024 includes approximately $1.43 million in recurring services and consulting revenue, an increase of 9% over the same period. The increase in recurring services and consulting revenues was driven by new revenue from power consulting work, which was not present in the comparative period.

Cost of revenues for Q4 2024 increased 47% to $1.79 million compared to $1.22 million for Q4 2023. The increase in costs year-over-year stems from $548,121 in amortization expenses recorded in Q4 2024 to offset site revenue related to a nonmonetary transaction for the new services and data agreement signed during the second quarter of 2024. The Company also generated $415,580 in services and consulting revenue from power consulting work, which was provided at cost, further increasing the cost of revenue for services and consulting, which was also not present in the corresponding period of Q4, 2023.

Gross margin for Q4 2024 decreased 209% to negative $330,000 compared to $303,000 for Q4 2023. The decline in margin during the quarter was a direct result of lower business activity timing in the technology systems area of the business as well as $415,580 in services and consulting revenue from power consulting work, which was largely provided at cost, and had a onetime dilutive effect on gross margin. These same project revenues and subsequent margin impacts were absent during Q4, 2023.

Operating expenses for Q4 2024 decreased 21% to $2.76 million compared to $3.48 million for Q4 2023. The decrease in expenses is attributed to reductions in development and administrative costs due to the completion of certain activities and the impact of previously implemented cost reductions. The decrease in operating expenses was slightly offset by additional investments in sales resources for expansion of the commercial team in preparation of the business expansions planned for Power and Data Centers. Beginning in late Q3 2024 and throughout all of Q4 2024 the Company allocated personnel costs, typically recorded under operating expenses, to costs of revenue associated with power consulting efforts, allowing the Company to recover costs that it would not have otherwise allowing the Company to maintain certain key resources required for anticipated business growth.

Net operating loss for Q4 2024 totaled $3.09 million compared to net operating loss of $3.18 million for Q4 2023. The decrease in net operating loss was as a result of planned reductions in operating expenses offset by anticipated lower revenues which resulted in an overall decrease in operating loss compared to the same quarter in 2023.

Net loss for Q4 2024 totaled $3.41 million compared to a net loss of $3.16 million for Q4 2023 as a result of higher interest costs related to the acquisition of 3 Edge Data Centers.

Cash and cash equivalents at December 31, 2024 totaled $6.27 million compared to $2.44 million at December 31, 2023. As of year-end, the Company had an additional $0.40 million in receivables, bolstering its liquidity position to approximately $6.67 million. Duos also had an additional $0.80 million of inventory as of December 31, 2024, consisting primarily of long-lead items for future RIP installations.

Across January and February of 2025, the Company issued an aggregate of 633,683 shares of common stock at a weighted average price of $6.24 per share through its ATM offering program, generating total net proceeds of approximately $3,836,032.

Full Year 2024 Financial Results

Total revenue for the full year 2024, decreased 3% to $7.28 million, down from $7.47 million for 2023. Much of the decrease in overall revenues was due to ongoing customer-driven delays beyond the Company’s control related to the deployment of two high-speed transit-focused Railcar Inspection Portals (RIPs). Although the systems were largely ready in 2023, installation was delayed due to customer site preparation issues, which has prevented the Company from recognizing the next phase of revenue. However, in 2024, the Company secured an equitable adjustment as partial compensation for those delays and increased the total contract value by $1.4 million, a substantial portion of which was recognized during the year. The customer is now nearing completion of site preparation, and field installation is expected to progress in 2025 with anticipated completion in 2026. Meanwhile, the Company continued its transition toward a greater focus on AI software and support services. Services and consulting revenues increased by 31% compared to 2023, driven by the addition of new AI and subscription customers, higher service contract pricing, and $921,562 in new revenue from power consulting work, all which was not present in for the full year in 2023. Underlying recurring revenues also continued to grow as new maintenance contracts are being established on installations coming online during 2025. The Company anticipates continued growth in service revenue from both new and existing customers, supported by upcoming renewals, a growing backlog, and the next generation of technology systems currently in production and expected to be completed in 2025.

Cost of revenues for the full year 2024, increased 11% to $6.81 million, up from $6.16 million in the same period of 2023. The increase in cost of revenues was driven by $1,569,311 in amortization expenses recorded in 2024 to offset site revenue related to a non-monetary transaction for the new services and data agreement signed during the second quarter of 2024. The Company also generated $921,562 in services and consulting revenue from power consulting work, which although was provided at cost, was partially performed by existing Duos staff. Part of the work was the retention of outside consultants further increasing the cost of revenue for services and consulting, which was also not present in the corresponding period of 2023, but prepared the Company for the signing of the Asset Management Agreement and expected significant revenue increases in 2025 and beyond. The Company continues to put into service additional artificial intelligence algorithms and maintenance and support services which are high margin and represent only marginal increases in the requisite costs to deliver these services. Cost of revenues on technology systems decreased during the period compared to the equivalent period in 2023 in line with the decline in project revenues. The decline in costs generally follows the same year-over-year trend as project revenues due to timing differences in major project work. This is primarily related to the procurement and manufacturing of transit-focused RIPs. As we are near the end of the manufacturing cycle and begin preparations for field installation in 2025, the cost of revenues for technology systems decreases accordingly. In contrast, during the same period in 2023, the Company was still progressing through the advanced stages of procurement and manufacturing for these RIPs.

Gross margin for the full year 2024, decreased 64% to $469,000, down from $1.31 million in the same period of 2023. As noted above, the decline in margin was primarily driven by the timing of business activity related to the two high-speed, transit-focused Railcar Inspection Portals. In 2024, activity centered on the advanced stages of procurement and manufacturing for these systems, but customer driven delays in installation deferred the recognition of higher-margin revenue. Additionally, the Company generated $921,562 in services and consulting revenue from power consulting work that was provided at cost, which further diluted overall gross margin. These power consulting revenues, and their margin impacts were not present in 2023. The gross margin for 2024 was approximately 6%, compared to 18% in 2023. This decline also reflects the fixed nature of certain departmental costs and the evolving stage of project completion. When comparing year-over-year results, the timing of manufacturing and installation milestones should be taken into consideration, as they can significantly impact the gross margin profile in any given period.

Operating expenses for the full year 2024, decreased 10% to $11.45 million, down from $12.76 million in the same period of 2023. There was a 43% increase in sales and marketing driven by continued investment in the commercial team, including the addition of professionals with extensive experience and leadership across the rail, Edge data center, and power industries. Research and development expenses declined by 16%, primarily due to lower personnel costs allocated to R&D and reduced testing as a result of completion of certain activities for prospective technologies. General and administration costs decreased by 18%, influenced by reductions in headcount and related personnel expenses, as well as a decline in non-cash amortization charges associated with the forfeiture of approximately 781,323 share options during 2024. Further contributing to the decrease were reductions in consulting and legal expenses compared to 2023.

Net operating loss for the years ended, December 31, 2024 and 2023 were $10,983,526 and $11,446,566, respectively. The decrease in losses from operations during the year was the result of planned decreases in operating expenses, which offset the impact of lower revenues recorded in the period as a consequence of delays in going to field for the two high-speed RIPs for a passenger transit client, and the short term lower gross margins from the impact of the initial power industry consulting.

Net loss for the years ended December 31, 2024 and 2023 was $10,764,457 and $11,241,718, respectively. The decrease in overall net loss was primarily attributable to a decrease in operating costs. Net loss per common share was $1.39 and $1.56 for the years ended December 31, 2024, and 2023, respectively, an improvement of $0.17 per share (basic). 

Financial Outlook
At the end of 2024, the Company’s contracts in backlog represented approximately $50.5 million in revenue, of which approximately $22.6 million is expected to be recognized in calendar 2025 not including an estimated $8.0 - $9.0 million in expected near-term awards and renewals. The remaining contract backlog consists of multi-year service and software agreements, along with project revenues extending through fiscal 2025, related to Duos Technologies, Duos Edge AI, and Duos Energy.

Based on these committed contracts and near-term pending orders that are already performing or scheduled to be executed throughout the course of 2025, the Company is in a position to reinstate revenue expectations for the fiscal year ending December 31, 2025. The Company expects total revenue for 2025 to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024. Duos expects this improvement in operating results to be reflected over the course of the full year in 2025.

Management Commentary

“Over the past several months, we have made significant progress across all three of our business lines—rail, edge computing, and power—while also expanding our investor base and analyst coverage,” said Duos Chief Executive Officer Chuck Ferry. “Our Railcar Inspection Portal continues to gain traction, with growing interest from both rail operators and government agencies, despite the industry's slow adoption cycle. Meanwhile, Duos Edge AI is scaling quickly, with strong demand for our Edge Data Centers, particularly in underserved rural areas. We remain on track to deploy 15 pods by the end of 2025 and are actively exploring opportunities to accelerate that growth. At the same time, Duos Energy is capitalizing on unprecedented demand for behind-the-meter power solutions, securing contracts for 390MW in just the first three months of operation, with additional deals in negotiation. The synergies between our power and edge computing businesses have exceeded expectations, opening doors to new opportunities across both sectors. With strong execution and a diversified portfolio, we are well-positioned for continued growth and profitability in 2025 and beyond.”

Conference Call
The Company’s management will host a conference call today, March 31, 2025, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed by a question-and-answer period.

Date: Monday, March 31, 2025
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: 877-407-3088
International dial-in:201-389-0927
Confirmation: 13751912
  

Please call the conference telephone number 5-10 minutes prior to the start time of the conference call. An operator will register your name and organization.

If you have any difficulty connecting with the conference call, please contact DUOT@duostech.com.

The conference call will be broadcast live via telephone and available for online replay via the investor section of the Company's website here.

About Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, through its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc., and Duos Energy Corporation, designs, develops, deploys and operates intelligent technology solutions for Machine Vision and Artificial Intelligence (“AI”) applications including real-time analysis of fast-moving vehicles, Edge Data Centers and power consulting. For more information, visit www.duostech.com, www.duosedge.ai and www.duosenergycorp.com.

Forward- Looking Statements

This news release includes forward-looking statements regarding the Company's financial results and estimates and business prospects that involve substantial risks and uncertainties that could cause actual results to differ materially. Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. The forward-looking statements in this news release relate to, among other things, information regarding anticipated timing for the installation, development and delivery dates of our systems; anticipated entry into additional contracts; anticipated effects of macro-economic factors (including effects relating to supply chain disruptions and inflation); timing with respect to revenue recognition; trends in the rate at which our costs increase relative to increases in our revenue; anticipated reductions in costs due to changes in the Company's organizational structure; potential increases in revenue, including increases in recurring revenue; potential changes in gross margin (including the timing thereof); statements regarding our backlog and potential revenues deriving therefrom; and statements about future profitability and potential growth of the Company. Words such as "believe," "expect," "anticipate," "should," "plan," "aim," "will," "may," "should," "could," "intend," "estimate," "project," "forecast," "target," "potential" and other words and terms of similar meaning, typically identify such forward-looking statements. Forward-looking statements involve risks and uncertainties and there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the Company's ability to continue as a going concern, the Company's ability to generate sufficient cash to continue and expand operations, the competitive environment generally and in the Company's specific market areas, changes in technology, the availability of and the terms of financing, changes in costs and availability of goods and services, economic conditions in general and in the Company's specific market areas, changes in federal, state and/or local government laws and regulations potentially affecting the use of the Company's technology, changes in operating strategy or development plans and the ability to attract and retain qualified personnel. The Company cautions that the foregoing list of risks, uncertainties and factors is not exclusive. Additional information concerning these and other risk factors is contained in the Company's most recently filed Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other filings filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, http://www.sec.gov. The Company believes its plans, intentions and expectations reflected in or suggested by these forward-looking statements are based on reasonable assumptions. No assurance, however, can be given that the Company will achieve or realize these plans, intentions or expectations. Indeed, it is likely that some of the Company's assumptions may prove to be incorrect. The Company's actual results and financial position may vary from those projected or implied in the forward-looking statements and the variances may be material. Each forward-looking statement speaks only as of the date of the particular statement. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All subsequent written and oral forward-looking statements concerning the Company or other matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
    
    
 For the Years Ended
 December 31,
 2024 2023
    
REVENUES:   
Technology systems$2,252,357  $3,618,022 
Services and consulting 5,028,528   3,853,176 
    
Total Revenues 7,280,885   7,471,198 
    
COST OF REVENUES:   
Technology systems 2,818,078   4,352,247 
Services and consulting 3,993,592   1,810,070 
    
Total Cost of Revenues 6,811,670   6,162,317 
    
GROSS MARGIN 469,215   1,308,881 
    
OPERATING EXPENSES:   
Sales and marketing 2,138,431   1,493,309 
Research and development 1,531,390   1,812,951 
General and administration 7,782,920   9,449,187 
    
Total Operating Expenses 11,452,741   12,755,447 
    
LOSS FROM OPERATIONS (10,983,526)  (11,446,566)
    
OTHER INCOME (EXPENSES):   
Interest expense (286,114)  (7,159)
Change in fair value of warrant liabilities 245,980   0 
Gain on extinguishment of warrant liabilities 379,626   0 
Other income, net (120,423)  212,007 
    
Total Other Income (Expenses), net 219,069   204,848 
    
NET LOSS$(10,764,457) $(11,241,718)
    
    
Basic and Diluted Net Loss Per Share$(1.39) $(1.56)
    
    
Weighted Average Shares-Basic and Diluted 7,736,281   7,204,177 
    


DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
   
     
  December 31, December 31,
  2024
 2023
     
ASSETS   
CURRENT ASSETS:   
 Cash$6,266,296  $2,441,842 
 Accounts receivable, net 403,441   1,462,463 
 Contract assets 635,774   641,947 
 Inventory 605,356   1,526,165 
 Prepaid expenses and other current assets 176,338   184,478 
 Note Receivable, net -   - 
     
 Total Current Assets 8,087,205   6,256,895 
     
 Inventory - non current 196,315   - 
 Property and equipment, net 2,771,779   726,507 
 Operating lease right of use asset - Office Lease 4,028,397   4,373,155 
 Financing lease right of use asset - Edge Data Centers 2,019,180   - 
 Security deposit 500,000   550,000 
     
OTHER ASSETS:   
 Equity Investment - Sawgrass APR Holdings LLC 7,233,000   - 
 Intangible Asset, net 9,592,118   - 
 Note Receivable, net -   153,750 
 Patents and trademarks, net 127,300   129,140 
 Software development costs, net 403,383   652,838 
 Total Other Assets 17,355,800   935,728 
     
TOTAL ASSETS$34,958,677  $12,842,285 
     
LIABILITIES AND STOCKHOLDERS' EQUITY   
     
CURRENT LIABILITIES:   
 Accounts payable$969,822  $595,634 
 Notes payable - financing agreements 17,072   41,976 
 Accrued expenses 373,251   164,113 
 Operating lease obligations - Office Lease -current portion 798,556   779,087 
 Financing lease obligation - Edge Data Centers - current portion 367,451   - 
 Notes payable, net of discount - related parties 1,758,396   - 
 Contract liabilities, current 11,805,018   1,666,243 
     
 Total Current Liabilities 16,089,566   3,247,053 
     
 Contract liabilities, less current portion 11,016,134   - 
 Operating lease obligations - Office Lease, less current portion 3,867,042   4,228,718 
 Financing lease obligation - Edge Data Centers, less current portion 1,724,604   - 
     
 Total Liabilities 32,697,346   7,475,771 
     
Commitments and Contingencies (Note 12)   
     
STOCKHOLDERS' EQUITY:   
 Preferred stock: $0.001 par value, 10,000,000 authorized, 9,441,000 shares available to be designated  
 Series A redeemable convertible preferred stock, $10 stated value per share, -   - 
 500,000 shares designated; 0 and 0 issued and outstanding at December 31, 2024 and December 31, 2023, respectively,
 convertible into common stock at $6.30 per share   
 Series B convertible preferred stock, $1,000 stated value per share, -   - 
 15,000 shares designated; 0 and 0 issued and outstanding at December 31, 2024  
 and December 31, 2023, respectively, convertible into common stock at $7 per share  
 Series C convertible preferred stock, $1,000 stated value per share, -   - 
 5,000 shares designated; 0 and 0 issued   
 and outstanding at December 31, 2024 and December 31, 2023, respectively,   
 convertible into common stock at $5.50 per share   
 Series D convertible preferred stock, $1,000 stated value per share, 1   1 
 4,000 shares designated; 1,299 and 1,299 issued   
 and outstanding at December 31, 2024 and December 31, 2023, respectively,   
 convertible into common stock at $3.00 per share   
 Series E convertible preferred stock, $1,000 stated value per share,   
 30,000 shares designated; 13,500 and 11,500 issued   
 and outstanding at December 31, 2024 and December 31, 2023, respectively, 14   12 
 convertible into common stock at $2.61 and $3.00 per share, respectively,   
 Series F convertible preferred stock, $1,000 stated value per share,   
 5,000 shares designated; 0 and 0 issued   
 and outstanding at December 31, 2024 and December 31, 2023, respectively, -   - 
 convertible into common stock at $6.20 per share   
     
 Common stock: $0.001 par value; 500,000,000 shares authorized,   
 8,922,576 and 7,306,663 shares issued, 8,921,252 and 7,305,339 8,921   7,306 
 shares outstanding at December 31, 2024 and December 31, 2023, respectively  
 Additional paid-in-capital 76,777,856   69,120,199 
 Accumulated deficit (74,368,009)  (63,603,552)
 Sub-total 2,418,783   5,523,966 
 Less: Treasury stock (1,324 shares of common stock   
 at December 31, 2024 and December 31, 2023) (157,452)  (157,452)
Total Stockholders' Equity 2,261,331   5,366,514 
     
Total Liabilities and Stockholders' Equity$34,958,677  $12,842,285 
     


DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 For the Years Ended
 December 31,
  2024   2023 
    
Cash from operating activities:   
Net loss$(10,764,457) $(11,241,718)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization 2,161,722   550,201 
Stock based compensation 108,981   710,047 
Stock issued for services 165,000   143,065 
Amortization of debt discount related to warrant liabilities 184,002   - 
Fair value of warrant liabilities (245,980)  - 
Gain on settlement of warrant liabilities (379,626)  - 
Amortization of operating lease right of use asset - Office Lease 344,757   316,776 
Amortization of lease right of use asset - Edge Data Centers 50,820   - 
Provision for credit losses, accounts receivable 76,037   - 
Provision for credit losses, note receivable 161,250   - 
Write off of inventory 126,703   - 
Changes in assets and liabilities:   
   Accounts receivable 982,985   1,955,800 
   Note receivable (7,500)  (153,750)
   Contract assets 6,173   (216,225)
   Inventory 52,700   (97,804)
   Security deposit 50,000   50,000 
   Prepaid expenses and other current assets 414,091   744,771 
   Accounts payable 374,188   (1,694,756)
   Accrued expenses 209,138   (289,209)
   Operating lease obligation - Office Lease (342,206)  (232,007)
   Lease obligation - Edge Data Centers 22,055   - 
   Contract liabilities 2,760,480   708,245 
    
Net cash used in operating activities (3,488,687)  (8,746,564)
    
Cash flows from investing activities:   
    Purchase of patents/trademarks (9,535)  (69,327)
    Purchase of software development -   (527,896)
    Purchase of fixed assets (1,831,763)  (496,686)
    
Net cash used in investing activities (1,841,298)  (1,093,909)
    
Cash flows from financing activities:   
   Repayments on financing agreements (430,855)  (520,529)
   Repayment of finance lease -   (22,851)
   Proceeds from notes payable, related parties 2,200,000   - 
   Proceeds from warrant exercises 899,521   - 
   Proceeds from common stock issued 3,544,689   - 
   Stock issuance cost (220,183)  (25,797)
   Proceeds from shares issued under Employee Stock Purchase Plan 166,265   230,400 
   Proceeds from preferred stock issued 2,995,002   11,500,000 
    
Net cash provided by financing activities 9,154,439   11,161,223 
    
Net increase in cash 3,824,454   1,320,750 
Cash, beginning of year 2,441,842   1,121,092 
Cash, end of year$6,266,296  $2,441,842 
    
Supplemental Disclosure of Cash Flow Information:   
Interest paid$3,865  $7,159 
Taxes paid$20,126  $29,085 
    
Supplemental Non-Cash Investing and Financing Activities:   
Debt discount for warrant liability$625,606  $- 
Notes issued for financing of insurance premiums$434,883  $487,929 
Transfer of inventory to fixed assets$545,091  $- 
Intangible asset acquired with contract liability$11,161,428  $- 
Equity Investment - Sawgrass APR Holdings LLC$7,233,000  $- 
Right of use asset and liability for Edge Data Centers$2,070,000  $- 
    

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c2f0eb27-5f9e-4015-9a56-d69465f6e1fd

This press release was published by a CLEAR® Verified individual.



Contacts 
Corporate
Fei Kwong
Director, Corporate Communications
Duos Technologies Group, Inc. (Nasdaq: DUOT)
904-652-1625
fk@duostech.com

FAQ

What is the value and scope of DUOT's new contract with APR Energy and Fortress Investment Group?

The contract is valued at up to $42 million for managing 850MW of Gas-Powered Turbines, including a 5% equity stake in New APR Energy's parent company.

How much revenue does DUOT expect to generate in 2025?

Duos Technologies projects revenue between $28-30 million for 2025, representing 285-312% growth from 2024.

What was DUOT's financial performance in Q4 2024?

Q4 2024 revenue was $1.46 million (down 4% YoY) with a net loss of $3.41 million, while recurring services revenue increased 9%.

How much backlog does DUOT have entering 2025?

DUOT has approximately $50.5 million in backlog, with $22.6 million expected to be recognized in 2025.

How many railcar images did DUOT scan in 2024?

DUOT scanned almost 10 million railcar images on over 700,000 unique railcars, representing 44% of North American freight car population.
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