DUOS Technologies Files Q3 2024 10-Q

TL;DR

DUOS Tech Q3 10-Q is in, showing preferred stock details for Series A-F as of Sep 30, 2024 vs Dec 31, 2023.

AI Summary

DUOS Technologies Group, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported its financial results, including details on its preferred stock series (Series A, B, C, D, E, F) as of September 30, 2024, and December 31, 2023. The filing also includes information on the company's business operations and financial condition.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that can reveal significant risks or opportunities, requiring careful analysis.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Latest financial data available)
• 2023-12-31 — Prior Year End Date (For comparison with current period)

Key Players & Entities

• DUOS TECHNOLOGIES GROUP, INC. (company) — Filer
• 20240930 (date) — Period of Report
• 20241119 (date) — Filing Date
• 7660 CENTURION PARKWAY (location) — Business Address
• JACKSONVILLE (location) — City
• FL (location) — State
• 32256 (location) — ZIP Code
• ConvertibleSeriesBPreferredStockMember (financial_instrument) — Preferred Stock Series
• ConvertibleSeriesCPreferredStockMember (financial_instrument) — Preferred Stock Series
• ConvertibleSeriesDPreferredStockMember (financial_instrument) — Preferred Stock Series

FAQ

Key Financial Figures

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

Filing Documents

• duot_10q-093024.htm (10-Q) — 2332KB
• ex31x1.htm (EX-31.1) — 10KB
• ex31x2.htm (EX-31.2) — 10KB
• ex32x1.htm (EX-32.1) — 5KB
• ex32x2.htm (EX-32.2) — 4KB
• 0001079973-24-001587.txt ( ) — 9277KB
• duot-20240930_pre.xml (EX-101.PRE) — 373KB
• duot-20240930_lab.xml (EX-101.LAB) — 430KB
• duot-20240930_def.xml (EX-101.DEF) — 241KB
• duot-20240930_cal.xml (EX-101.CAL) — 64KB
• duot-20240930.xsd (EX-101.SCH) — 59KB
• duot_10q-093024_htm.xml (XML) — 1661KB

– 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 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 47

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, December 31, 2024 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 613,594 $ 2,441,842 Restricted cash 32,519 — Accounts receivable, net 1,601,152 1,462,463 Contract assets 609,008 641,947 Inventory 1,028,387 1,526,165 Prepaid expenses and other current assets 310,869 184,478 Note Receivable, net 159,375 — Total Current Assets 4,354,904 6,256,895 Property and equipment, net 2,318,233 726,507 Operating lease right of use asset 4,117,471 4,373,155 Security deposit 500,000 550,000 OTHER ASSETS: Intangible Asset, net 10,140,238 — Note Receivable, net — 153,750 Patents and trademarks, net 128,793 129,140 Software development costs, net 465,228 652,838 Total Other Assets 10,734,259 935,728 Total Assets $ 22,024,867 $ 12,842,285 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,727,190 $ 595,634 Notes payable - financing agreements 128,404 41,976 Accrued expenses 323,593 164,113 Operating lease obligations-current portion 793,658 779,087 Contract liabilities, current 2,982,213 1,666,243 Total Current Liabilities 5,955,058 3,247,053 Contract liabilities, less current portion 7,947,755 — Notes payable 1,647,995 — Operating lease obligations, less current portion 3,961,590 4,228,718 Total Liabilities 19,512,398 7,475,771 Commitments and Contingencies (Note 5) 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 shares designated; 0 and 0 issued and outstanding at September 30, 2024 and December 31, 2023, respectively, convertible into common stock at $ 6.30 per share — — Series B convertible preferred stock, $ 1,000 stated

financial statements

financial statements. 2 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES For the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) Preferred Stock B Preferred Stock C Preferred Stock D Preferred Stock E Preferred Stock F Common Stock Additional # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount Paid-in- Capital Accumulated 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 ("ESPP") 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 )

financial statements

financial statements. 3 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES For the Three and Nine Months Ended September 30, 2024 and 2023 (Continued) (Unaudited) Preferred Stock B Preferred Stock C Preferred Stock D Preferred Stock E Preferred Stock F Common Stock Additional # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount # of Shares Amount Paid-in- Capital Accumulated Deficit Treasury Stock Total 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 ) $ 5,519,839 Series D preferred stock issued — $ — — $ — 250 $ — — $ — — $ — — $ — $ 250,000 $ — $ — $ 250,000 Stock issued for services — — — — — — — — — — 15,041 15 42,485 — — 42,500 Stock issued under the ESPP for cash and compensation — — — — — — — — — — 38,041 38 109,780 — — 109,818 Series D preferred stock converted to common stock — — — — ( 650 ) ( 1 ) — — — — 216,668 217 ( 216 ) — — — Common stock issued for

financial statements

financial statements. 4 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Nine Months Ended September 30, 2024 2023 Cash from operating activities: Net loss $ ( 7,358,143 ) $ ( 8,080,819 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,472,965 393,057 Stock based compensation 281,405 499,590 Stock issued for services 122,500 105,565 Amortization of debt discount related to warrant liabilities 73,601 — Fair value of warrant liabilities ( 245,980 ) — Gain on settlement of warrant liabilities ( 379,626 ) — Amortization of operating lease right of use asset 255,684 235,217 Changes in assets and liabilities: Accounts receivable ( 138,689 ) 3,159,389 Note receivable ( 5,625 ) ( 151,875 ) Contract assets 32,939 ( 921,009 ) Inventory 197,777 ( 97,552 ) Security deposit 50,000 50,000 Prepaid expenses and other current assets 300,271 543,793 Accounts payable 1,131,552 ( 1,670,625 ) Accrued expenses 159,482 ( 178,081 ) Operating lease obligation ( 252,557 ) ( 154,653 ) Contract liabilities ( 1,897,703 ) 630,931 Net cash used in operating activities ( 6,200,147 ) ( 5,637,072 ) Cash flows from investing activities: Purchase of patents/trademarks ( 8,105 ) ( 58,208 ) Purchase of software development — ( 640,609 ) Purchase of fixed assets ( 1,547,439 ) ( 199,618 ) Net cash used in investing activities ( 1,555,544 ) ( 898,435 ) Cash flows from financing activities: Repayments on financing agreements ( 340,232 ) ( 395,221 ) Repayment of finance lease — ( 22,851 ) Proceeds from notes payable 2,200,000 — Proceeds from warrant exercises 899,521 — Proceeds from common stock issued 197,011 — Stock issuance cost ( 78,688 ) ( 17,645 ) Proceeds from shares issued under Employee Stock Purchase Plan 87,348 117,048 Proceeds from preferr

financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for

financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (all of which are of a normal recurring nature) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future period. These unaudited consolidated financial statements and the unaudited condensed notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC") on April 1, 2024. Principles of Consolidation The unaudited consolidated financial statements include Duos Technologies Group, Inc. and its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc. and Duos Energy Corporation. All inter-company transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The most significant estimates in the accompanying unaudited consolidated financial statements include the initial valuation of a non

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