DUOS Technologies Group Files Q2 2024 10-Q

TL;DR

**DUOS Q2 10-Q FILED: Get the latest financials and operational updates.**

AI Summary

DUOS Technologies Group, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial results for the second quarter and the first half of the year. Key financial data and operational updates are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational status of DUOS Technologies Group, Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — As a publicly traded company filing a 10-Q, DUOS Technologies Group, Inc. is subject to market and operational risks inherent in the software industry.

Key Numbers

• Q2 2024 — Reporting Period (Financial results for the second quarter of 2024 are detailed.)
• 2024-01-01 to 2024-06-30 — Fiscal Year to Date (Covers the first six months of the fiscal year.)

Key Players & Entities

• DUOS TECHNOLOGIES GROUP, INC. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240813 (date) — Filing date
• JACKSONVILLE, FL (location) — Company's business and mailing address

FAQ

Key Financial Figures

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

Filing Documents

• duos_10q-06302024.htm (10-Q) — 1471KB
• ex31x1.htm (EX-31.1) — 10KB
• ex31x2.htm (EX-31.2) — 9KB
• ex32x1.htm (EX-32.1) — 5KB
• ex32x2.htm (EX-32.2) — 4KB
• 0001079973-24-001218.txt ( ) — 7353KB
• duot-20240630.xsd (EX-101.SCH) — 52KB
• duot-20240630_cal.xml (EX-101.CAL) — 57KB
• duot-20240630_def.xml (EX-101.DEF) — 213KB
• duot-20240630_lab.xml (EX-101.LAB) — 393KB
• duot-20240630_pre.xml (EX-101.PRE) — 338KB
• duos_10q-06302024_htm.xml (XML) — 1346KB

– 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 29 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 506,114 $ 2,441,842 Accounts receivable, net 128,795 1,462,463 Contract assets 1,139,395 641,947 Inventory 1,060,373 1,526,165 Prepaid expenses and other current assets 436,066 184,478 Note receivable, net 157,500 — Total Current Assets 3,428,243 6,256,895 Property and equipment, net 1,736,407 726,507 Operating lease right of use asset 4,204,593 4,373,155 Security deposit 500,000 550,000 OTHER ASSETS: Note receivable, net — 153,750 Intangible asset, net 10,688,359 — Patents and trademarks, net 128,371 129,140 Software development costs, net 524,225 652,838 Total Other Assets 11,340,955 935,728 TOTAL ASSETS $ 21,210,198 $ 12,842,285 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 849,497 $ 595,634 Notes payable - financing agreements 241,452 41,976 Accrued expenses 252,024 164,113 Operating lease obligations-current portion 788,801 779,087 Contract liabilities, current 3,676,567 1,666,243 Total Current Liabilities 5,808,341 3,247,053 Contract liabilities, less current portion 8,495,876 — Operating lease obligations, less current portion 4,052,527 4,228,718 Total Liabilities 18,356,744 7,475,771 Commitments and Contingencies (Note 5) — — 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 June 30, 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 Jun

financial statements

financial statements. 2 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES For the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) Preferred Stock B Preferred Stock C Preferred Stock D Preferred Stock E Common Stock Additional Accumulated # of Shares Amount # 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 Stock options compensation — — — $ — — $ — — $ — — $ — $ 161,399 $ — $ — $ 161,399 Stock issuance cost — — — — — — — — — — 281,500 — — 281,500 Stock issued for services — — — — — — — — 5,645 6 32,494 — — 32,500 Stock issued under the Employee Stock Purchase Plan for cash and compensation — — — — — — — — 65,561 66 183,199 — — 183,265 Net loss for the three months ended June 30, 2023 — — — — — — — — — — — ( 2,989,400 ) — ( 2,989,400 ) Balance June 30, 2023 — $ — — $ — 1,299 $ 1 4,000 $ 4 7,240,545 $ 7,240 $ 61,029,659 $ ( 57,494,917 ) $ ( 157,452 ) $ 3,384,535 Balance December 31, 2023 — $ — — $ — 1,299 $ 1 11,500 $ 12 7,306,663 $ 7,306 $ 69,120,199 $ ( 63,603,5

financial statements

financial statements. 3 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, 2024 2023 Cash from operating activities: Net loss $ ( 5,956,480 ) $ ( 5,133,083 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 781,835 230,592 Stock based compensation 241,694 302,743 Stock issued for services 80,000 65,000 Amortization of operating lease right of use asset 168,562 155,338 Changes in assets and liabilities: Accounts receivable 1,333,668 3,131,392 Note receivable ( 3,750 ) ( 150,625 ) Contract assets ( 497,448 ) ( 581,069 ) Inventory 165,792 ( 116,393 ) Security deposit 50,000 50,000 Prepaid expenses and other current assets 175,073 403,225 Accounts payable 253,863 ( 1,530,361 ) Accrued expenses 87,912 ( 150,914 ) Operating lease obligation ( 166,477 ) ( 80,559 ) Contract liabilities ( 655,228 ) 1,481,643 Net cash used in operating activities ( 3,940,984 ) ( 1,923,071 ) Cash flows from investing activities: Purchase of patents/trademarks ( 4,765 ) ( 28,720 ) Purchase of software development — ( 360,437 ) Purchase of fixed assets ( 884,520 ) ( 159,203 ) Net cash used in investing activities ( 889,285 ) ( 548,360 ) Cash flows from financing activities: Repayments on financing agreements ( 227,184 ) ( 273,965 ) Repayment of finance lease — ( 22,851 ) Proceeds from common stock issued 115,563 — Stock issuance costs ( 76,188 ) ( 17,645 ) Proceeds from shares issued under Employee Stock Purchase Plan 87,348 117,048 Proceeds from preferred stock issued 2,995,002 4,000,000 Net cash provided by financing activities 2,894,541 3,802,587 Net increase (decrease) in cash ( 1,935,728 ) 1,331,156 Cash, beginning of period 2,441,842 1,121,092 Cash, end of period $ 506,114 $ 2,452,248 Supplemental Disclosure o

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