DUOS TECHNOLOGIES GROUP, INC. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>DUOS TECHNOLOGIES GROUP, INC. filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

DUOS TECHNOLOGIES GROUP, INC. (DUOT) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. DUOS TECHNOLOGIES GROUP, INC. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is in Jacksonville, Florida. The SIC code for DUOS TECHNOLOGIES GROUP, INC. is 7372 (SERVICES-PREPACKAGED SOFTWARE). The filing was made on May 13, 2024.

Why It Matters

For investors and stakeholders tracking DUOS TECHNOLOGIES GROUP, INC., this filing contains several important signals. This 10-Q filing provides investors with an update on the company's financial performance and operational status for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — DUOS TECHNOLOGIES GROUP, INC. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain immediate, significant financial changes or disclosures that would indicate high risk.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand DUOS TECHNOLOGIES GROUP, INC.'s performance in Q1 2024.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-13 — Filing Date (Date the report was filed)
• 7372 — SIC Code (Standard Industrial Classification for the company)

Key Players & Entities

• DUOS TECHNOLOGIES GROUP, INC. (company) — Filer name
• 2024-03-31 (date) — Period of report
• 2024-05-13 (date) — Filing date
• 7372 (industry_code) — Standard Industrial Classification
• Jacksonville, FL (location) — Business address city and state

FAQ

Industry Context

DUOS TECHNOLOGIES GROUP, INC. operates within the software and technology services sector, specifically focusing on prepackaged software solutions.

Regulatory Implications

As a publicly traded company, DUOS TECHNOLOGIES GROUP, INC. is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended March 31, 2024.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into performance drivers and trends.
3. Check for any new risk factors or updates to existing ones disclosed in the filing.

Key Dates

• 2024-03-31: Quarter End Date — Marks the end of the reporting period for the 10-Q.
• 2024-05-13: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending March 31, 2024, following the 10-K filing for the fiscal year ended December 31, 2023.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 DUOT The Nasdaq Capital Market In

Filing Documents

• duos_10q-033124.htm (10-Q) — 1036KB
• ex31x1.htm (EX-31.1) — 10KB
• ex31x2.htm (EX-31.2) — 10KB
• ex32x1.htm (EX-32.1) — 5KB
• ex32x2.htm (EX-32.2) — 5KB
• 0001079973-24-000691.txt (&nbsp;) — 5579KB
• duot-20240331.xsd (EX-101.SCH) — 43KB
• duot-20240331_cal.xml (EX-101.CAL) — 51KB
• duot-20240331_def.xml (EX-101.DEF) — 174KB
• duot-20240331_lab.xml (EX-101.LAB) — 341KB
• duot-20240331_pre.xml (EX-101.PRE) — 287KB
• duos_10q-033124_htm.xml (XML) — 929KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 38

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, 2024 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 2,977,592 $ 2,441,842 Accounts receivable, net 596,090 1,462,463 Contract assets 912,046 641,947 Inventory 1,502,337 1,526,165 Prepaid expenses and other current assets 398,856 184,478 Total Current Assets 6,386,921 6,256,895 Property and equipment, net 645,342 726,507 Operating lease right of use asset 4,289,807 4,373,155 Security deposit 550,000 550,000 OTHER ASSETS: Note Receivable, net 155,625 153,750 Patents and trademarks, net 127,357 129,140 Software development costs, net 587,388 652,838 Total Other Assets 870,370 935,728 TOTAL ASSETS $ 12,742,440 $ 12,842,285 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 179,916 $ 595,634 Notes payable - financing agreements 183,763 41,976 Accrued expenses 240,483 164,113 Operating lease obligations-current portion 783,944 779,087 Contract liabilities 1,692,940 1,666,243 Total Current Liabilities 3,081,046 3,247,053 Operating lease obligations, less current portion 4,141,555 4,228,718 Total Liabilities 7,222,601 7,475,771 Commitments and Contingencies (Note 4) — — STOCKHOLDERS' EQUITY: Preferred stock: $ 0.001 par value, 10,000,000 shares 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 issued and outstanding at March 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 March 31, 2024 and December 31, 2023, respectively, convertible into common stock at $ 7 per share — — Series C convertible preferred stoc

financial statements

financial statements. 1 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended March 31, 2024 2023 REVENUES: Technology systems $ 269,855 $ 1,827,764 Services and consulting 800,825 816,524 Total Revenues 1,070,680 2,644,288 COST OF REVENUES: Technology systems 583,437 1,767,209 Services and consulting 392,611 339,907 Total Cost of Revenues 976,048 2,107,116 GROSS MARGIN 94,632 537,172 OPERATING EXPENSES: Sales and marketing 553,486 307,577 Research and development 382,142 404,885 General and Administration 1,920,050 1,971,508 Total Operating Expenses 2,855,678 2,683,970 LOSS FROM OPERATIONS ( 2,761,046 ) ( 2,146,798 ) OTHER INCOME (EXPENSES): Interest expense ( 445 ) ( 1,180 ) Other income, net 9,182 4,295 Total Other Income (Expenses) 8,737 3,115 NET LOSS $ ( 2,752,309 ) $ ( 2,143,683 ) Basic and Diluted Net Loss Per Share $ ( 0.38 ) $ ( 0.30 ) Weighted Average Shares-Basic and Diluted 7,306,949 7,156,876 See accompanying condensed notes to the unaudited consolidated

financial statements

financial statements. 2 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES For the Three Months Ended March 31, 2024 and 2023 (Unaudited) Preferred Stock D Preferred Stock E Preferred Stock F Common Stock Additional Accumulated # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount Paid-in-Capital Deficit Treasury Stock Total Balance December 31, 2022 1,299 $ 1 — $ — — $ — 7,156,876 $ 7,156 $ 56,562,600 $ ( 52,361,834 ) $ ( 157,452 ) $ 4,050,471 Series E preferred stock issued — — 4,000 4 — — — — 3,999,996 — — 4,000,000 Stock options compensation — — — — — — — — 75,128 — — 75,128 Stock issuance cost — — — — — — — — ( 299,145 ) — — ( 299,145 ) Stock issued for services — — — — — — 12,463 12 32,488 — — 32,500 Net loss for the three months ended March 31, 2023 — — — — — — — — — ( 2,143,683 ) — ( 2,143,683 ) Balance March 31, 2023 1,299 $ 1 4,000 $ 4 — $ — 7,169,339 $ 7,168 $ 60,371,067 $ ( 54,505,517 ) $ ( 157,452 ) $ 5,715,271 Balance December 31, 2023 1,299 $ 1 11,500 $ 12 — $ — 7,306,663 $ 7,306 $ 69,120,199 $ ( 63,603,552 ) $ ( 157,452 ) 5,366,514 Series D preferred stock issued 620 1 — — — — — — 619,999 — — 620,000 Series E preferred stock issued — — 2,125 2 — — — — 2,125,000 — — 2,125,002 Stock options compensation — — — — — — — — 141,204 — — 141,204 Stock issuance cost — — — — — — — — ( 36,188 ) — — ( 36,188 ) Stock issued for services — — — — — — 8,655 9 37,491 — — 37,500 Stock compensation under ESPP — — — — — — — — 18,116 — — 18,116 Net loss for the three months ended March 31, 2024 — — — — — — — — — ( 2,752,309 ) — ( 2,752,309 ) Balance March 31, 2024 1,919 $ 2 13,625 $ 14 — $ — 7,315,318 $ 7,315 $ 72,025,821 $ ( 66,355,861 ) $ ( 157,452 ) $ 5,519,

financial statements

financial statements. 3 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended March 31, 2024 2023 Cash from operating activities: Net loss $ ( 2,752,309 ) $ ( 2,143,683 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 158,208 116,588 Stock based compensation 159,320 75,128 Stock issued for services 37,500 32,500 Amortization of operating lease right of use asset 83,348 77,101 Changes in assets and liabilities: Accounts receivable 866,373 2,700,917 Note receivable ( 1,875 ) — Contract assets ( 270,099 ) ( 1,000,590 ) Inventory 23,828 ( 101,167 ) Prepaid expenses and other current assets 57,944 228,941 Accounts payable ( 415,718 ) ( 1,008,207 ) Accrued expenses 76,370 ( 85,371 ) Operating lease obligation ( 82,306 ) ( 8,107 ) Contract liabilities 26,697 1,108,864 Net cash used in operating activities ( 2,032,719 ) ( 7,086 ) Cash flows from investing activities: Purchase of patents/trademarks ( 980 ) ( 7,339 ) Purchase of software development — ( 212,067 ) Purchase of fixed assets ( 8,830 ) ( 41,738 ) Net cash used in investing activities ( 9,810 ) ( 261,144 ) Cash flows from financing activities: Repayments on financing agreements ( 130,535 ) ( 201,485 ) Repayment of finance lease — ( 11,285 ) Stock issuance cost ( 36,188 ) ( 299,145 ) Proceeds from preferred stock issued 2,745,002 4,000,000 Net cash provided by financing activities 2,578,279 3,488,085 Net increase in cash 535,750 3,219,855 Cash, beginning of period 2,441,842 1,121,092 Cash, end of period $ 2,977,592 $ 4,340,947 Supplemental Disclosure of Cash Flow Information: Interest paid $ — $ 1,180 Taxes paid $ — $ — Supplemental Non-Cash Investing and Financing Activities: Notes issued for financing of insurance premiums $ 272,322 $ 320,004

financial statements

financial statements. 4 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Duos Technologies Group, Inc. (the "Company"), through its operating subsidiary, Duos Technologies, Inc. ("Duos") (collectively the "Company"), is a company that specializes in machine vision and artificial intelligence to analyze fast moving objects such as trains, trucks, automobiles, and aircraft. This technology can help improve safety, maintenance, and operating metrics. The Company is the inventor of the Railcar Inspection Portal (RIP) and is currently the rail industry leader for machine vision/camera wayside detection systems that include the use of Artificial Intelligence at speeds up to 125 mph. The RIP inspects a train at full speed from the top, sides, and bottom looking at FRA/AAR mandated safety inspection points. The system also detects illegal riders, which can assist law enforcement agencies. Each rail car is scanned with machine vision cameras and other sensors from the top, sides, and bottom, where images are produced within seconds of the railcar passing. These images can then be used by the customer to help prevent derailments, improve maintenance operations, and assist with security. The Company self-performs all aspects of hardware, software, Information Technology ("IT"), and Artificial Intelligence development and engineering. The Company maintains significant intellectual property and continues to be awarded additional patents for both the technology and methodologies used. The Company also has a proprietary portfolio of approximately 50 Artificial Intelligence "Use Cases" that automatically flag defects. The Company has deployed this system with several Class 1 railroads and one major passenger carrier and anticipates an increased demand in the future from railcar operators,

View Full Filing

View this 10-Q filing on SEC EDGAR