Duos Technologies Group, Inc. (“Duos” or
the “Company”) (Nasdaq: DUOT), a provider of machine
vision and artificial intelligence that analyzes fast moving
vehicles, reported financial results for the second quarter (“Q2
2023”) ended June 30, 2023.
Second Quarter 2023 and Recent
Operational Highlights
- Announced an add-on award of $1.9
million for the enhancement of a planned Railcar Inspection Portal
(“rip®” or “RIP®”) system in the passenger transportation sector,
pushing the total contract value to more than $13.7 million. This
latest addition is part of a long-term installation of the
Company's most advanced RIP system, which will capture high-speed
images of railcars at up to 125 miles per hour.
- Implemented first subscription
services agreement with a passenger transit operator. In connection
with the agreement, Duos will offer access to its RIP and optional
artificial intelligence detection models for key inspection points.
The agreement, renewable annually, is initially valued at $300,000
and encompasses customer training, installation, and railcar data
services across up to three existing, active portals.
- Performed over 2.1 million
comprehensive railcar scans in the second quarter across 13
portals. This metric encompasses all railcars scanned at locations
across the U.S., Canada, and Mexico.
- Released new AI detection model
covering end-of-car cushion inspection, detecting a condition which
could potentially lead to derailments, for use with the Company’s
RIP solution. The new model was developed in response to a specific
customer request and deployed during mid Q2. The Company currently
has over 40 models deployed and operational for freight and transit
customers with plans to deploy more than 50 different models by the
end of 2023.
- Upgraded the Company’s
centraco® and truevue360™ systems to enable near
“real-time” reporting and facilitate immediate alerts to on-board
personnel of any issue that is deemed critical.
- Appointed rail industry veteran
Frank Lonegro to the Board of Directors. Mr. Lonegro enjoyed a
long and distinguished career at CSX Corporation and currently
serves as the Chief Financial Officer for Beacon Roofing Supply, a
Fortune 500 company. His addition brings the Company’s board
composition back to five total directors, four of whom are
independent.
- As of the end of the second
quarter, the Company had $7.8 million of revenue in backlog and
expects $3.0 million to 5.0 million to be recognized during the
remainder of 2023.
- Strengthened industry
collaborations with Dell Technologies and NVIDIA to support AI
development and achieve significant increases in performance at
near “real-time” reporting.
Second Quarter 2023 Financial ResultsIt should
be noted that the following Financial Results represent the
consolidation of the Company with its subsidiaries Duos
Technologies, Inc. and TrueVue360, Inc.
Total revenue for Q2 2023
decreased 51% to $1.77 million compared to $3.62 million in the
second quarter of 2022 (“Q2 2022”). Total revenue for Q2 2023
represents an aggregate of approximately $870,000 of technology
systems revenue and approximately $900,000 in recurring services
and consulting revenue. The decrease in total revenue was driven by
the delays in production and manufacturing of two high-speed Rail
Inspection Portals for a passenger transit client, which are
recorded in technology systems. Growth of the services portion of
revenues was driven by the successful completion and implementation
of artificial intelligence detections and represents services and
support for those detections.
Cost of revenues for Q2 2023
decreased 35% to $1.53 million compared to $2.33 million for Q2
2022. The decline in cost of revenues was mainly attributable to
the Company bearing the costs of procuring and allocating material
for two high-speed RIPs for a transit customer in Q2 2022 without a
related spend in Q2 2023. The marginal increase in cost of revenues
on services and consulting was attributable to higher labor costs
as well as costs associated with new portals coming online during
early 2023, as opposed to the corresponding period in 2022.
Gross margin for Q2 2023
decreased 81% to $241,000 compared to $1.28 million for Q2 2022.
The decrease in gross margin was driven by the timing of business
activity in Q2 2023 related to the manufacturing and delivery of
two high-speed, transit-focused RIPs for one customer.
Operating expenses for Q2 2023
increased 27% to $3.39 million compared to $2.68 million for Q2
2022. Sales and marketing costs saw only marginal decreases, while
research and development expenses increased slightly. The largest
increase was observed in general and administration costs, which
can be primarily attributed to the timing of the Company's awarding
of discretionary performance compensation that took effect in April
2023 compared to similar charges occurring during the third quarter
of 2022. Overall, the Company continues to focus on maintaining
operating expenses while meeting the increased needs of its
customers.
Net operating loss for Q2 2023
totaled $3.15 million compared to net operating loss of $1.39
million for Q2 2022. The increase in loss from operations was
primarily the result of lower revenues recorded in the second
quarter as a consequence of the delays previously noted, offset by
continued increases in services and consulting revenue.
Net loss for Q2 2023 totaled
$2.99 million compared to net loss of $1.34 million for Q2 2022.
The increase in net loss was mostly attributable to the decrease in
revenues as previously noted above along with timing to operating
expenses year-over-year, partially offset by the sale of a legacy
business recognized in Other Income.
Cash and cash equivalents at
June 30, 2023 totaled $2.45 million compared to $1.12 million at
December 31, 2022. As of quarter end, the Company had an additional
$287,000 in receivables. Duos also held $1.54 million in inventory
as of June 30, 2023, consisting primarily of long-lead items for
future RIP installations.
Subsequent to the quarter end, the Company
raised gross proceeds of $5 million from the sale of Series F
Convertible Preferred Stock in August 2023 via a private
transaction with the Company’s largest shareholder at the market
price equivalent of $6.20. As a result of this transaction, the
Company currently has approximately $6.0 million in cash and cash
equivalents.
Six Month 2023 Financial
Results
Total revenue decreased
13% to $4.41 million from $5.06 million in the same period last
year. Total revenue for the first six months of 2023 represents an
aggregate of approximately $2.70 million of technology systems
revenue and approximately $1.72 million in recurring services and
consulting revenue. An increase in recurring revenues by 15% was
offset by the decrease in technology systems revenue. Total revenue
was impacted by delays in the delivery of two high-speed RIPs for a
passenger transit client. Growth of the services portion of
revenues was driven by the successful completion and implementation
of artificial intelligence detections and represents services and
support for those detections.
Cost of revenues increased
2% to $3.64 million from $3.55 million in the same period last
year. The increase in cost of revenues was a result of timing of
project work ongoing for the Company.
Gross margin decreased 48%
to $779,000 from $1.50 million in the same period last year. The
decrease in gross margin was driven by the timing of business
activity in Q2 2023 related to the manufacturing of two high-speed,
transit-focused RIPs for one customer.
Operating
expenses increased 10% to $6.07 million from $5.54
million in the same period last year. The Company maintained its
costs for sales, marketing, and research and development at a
consistent level, while observing a slight rise in general and
administrative costs. This increase in G&A costs can be
primarily attributed to the timing of performance-based
compensation awarded in the second quarter of 2023 compared to the
same period in 2022.
Net operating loss totaled
$5.30 million compared to net operating loss of $4.04 million in
the same period last year. The increase in loss from operations was
primarily the result of lower revenues recorded in the second
quarter as a consequence of the delays previously noted, offset by
continued increases in services and consulting revenue.
Net loss totaled $5.13
million compared to a net loss of $3.99 million in the same period
last year. The increase in net loss was mostly attributable to the
decrease in revenues as previously noted above along with growing
expenses, partially offset by the sale of a legacy business
recognized in Other Income.
Financial Outlook At the end of
the second quarter, the Company’s contracts in backlog represented
approximately $7.8 million in revenue, of which approximately $3.0
million to 5.0 million is expected to be recognized during the
remainder of 2023. The balance of contract backlog is comprised of
multi-year service and software agreements as well as project
revenues spanning into fiscal 2024.
Based on these committed contracts and near-term
pending orders that are already performing or scheduled to be
executed throughout the course of 2023 as well as the planned
expansion of the Company’s subscription business model and other
contributing factors, Duos is reiterating its previously stated
revenue expectations for the fiscal year ending December 31, 2023.
The Company expects total revenue for 2023 to range between $20.0
million and $21.0 million, representing an increase of 33% to 40%
compared to 2022.
Duos expects its improvement in operating
results to be reflected over the course of the full year in 2023.
As a result of timing and other factors, the Company expects
revenues in the third quarter of 2023 to moderately increase
compared to the second quarter of 2023 before ramping up more
significantly in the fourth quarter and into 2024.
Management Commentary“During
the second quarter, we continued to drive incremental progress as
we make the ongoing transition from a predominantly project-based,
CAPEX-only model to a hybrid, subscription-first business,” said
Duos Chief Executive Officer Chuck Ferry. “Over the last twelve
months, we’ve generated approximately $14.4 million in revenue with
the recurring component continuing to reliably increase over that
time. Our ability to generate improved revenue during this span
supports our longer-term outlook while the steady, recurring
revenue performance validates our decision to invest in dual income
streams. Additionally, as a result of recent transactions and
continued, diligent cost management, we have ample liquidity to
execute on our near-term goals.
“On the technology side, we are continuing to
make major improvements in our AI capabilities. As of today, we
have expanded the number of AI use cases in our catalogue to 40 in
total with several recent and upcoming releases focused
specifically on the passenger rail segment in response to customer
demand. Through our strategic partnerships with Dell Technologies
and NVIDIA, we’ve been able to operate at ever-greater computing
density, enabling us to deliver near-real-time responses to mission
critical areas and yet maintain a smaller server footprint.
“While we continue to navigate temporary
project-related delays, interest in our solutions from the rail
industry has never been greater. Between pending government
legislation, skyrocketing interest in all kinds of AI applications,
and the commercial demand we’re seeing as a result, we believe we
are entering a unique inflection point with the right technology at
the right time. Duos remains in its strongest-ever position, and we
look forward to capitalizing on the opportunities ahead.”
Conference Call
The Company’s management will host a conference
call today, August 14, 2023, 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, August 14, 2023Time: 4:30 p.m.
Eastern time (1:30 p.m. Pacific time)U.S. dial-in:
877-407-3088International dial-in: 201-389-0927Confirmation:
13740403
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 Gateway Investor Relations at
949-574-3860.
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
subsidiary, Duos Technologies, Inc., designs, develops, deploys and
operates intelligent vision based technology solutions supporting
rail, logistics, intermodal and government customers that
streamline operations, improve safety and reduce costs. The Company
provides cutting edge solutions that automate the mechanical and
security inspection of fast-moving trains, trucks and automobiles
through a broad range of proprietary hardware, software,
information technology and artificial intelligence. For more
information, visit www.duostech.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 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
For the Six Months Ended |
|
|
|
June 30 |
|
June 30 |
|
June 30 |
|
June 30 |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
Technology systems |
|
$ |
870,494 |
|
|
$ |
2,780,045 |
|
|
$ |
2,698,258 |
|
|
$ |
3,563,314 |
|
|
Services and
consulting |
|
|
899,565 |
|
|
|
837,097 |
|
|
|
1,716,089 |
|
|
|
1,493,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues |
|
|
1,770,059 |
|
|
|
3,617,142 |
|
|
|
4,414,347 |
|
|
|
5,056,458 |
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES: |
|
|
|
|
|
|
|
|
|
Technology
systems |
|
|
1,072,106 |
|
|
|
1,974,302 |
|
|
|
2,839,315 |
|
|
|
2,839,790 |
|
|
Services and
consulting |
|
|
456,616 |
|
|
|
360,226 |
|
|
|
796,523 |
|
|
|
711,988 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Cost
of Revenues |
|
|
1,528,722 |
|
|
|
2,334,528 |
|
|
|
3,635,838 |
|
|
|
3,551,778 |
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN |
|
|
241,337 |
|
|
|
1,282,614 |
|
|
|
778,509 |
|
|
|
1,504,680 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
301,077 |
|
|
|
375,986 |
|
|
|
608,654 |
|
|
|
659,880 |
|
|
Research and
development |
|
|
537,801 |
|
|
|
530,339 |
|
|
|
942,686 |
|
|
|
967,056 |
|
|
General and
administration |
|
|
2,550,709 |
|
|
|
1,770,764 |
|
|
|
4,522,217 |
|
|
|
3,913,837 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses |
|
|
3,389,587 |
|
|
|
2,677,089 |
|
|
|
6,073,557 |
|
|
|
5,540,773 |
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(3,148,250 |
) |
|
|
(1,394,475 |
) |
|
|
(5,295,048 |
) |
|
|
(4,036,093 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3,230 |
) |
|
|
(2,706 |
) |
|
|
(4,410 |
) |
|
|
(5,886 |
) |
Other income, net |
|
|
162,080 |
|
|
|
54,509 |
|
|
|
166,375 |
|
|
|
54,691 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Income (Expenses) |
|
|
158,850 |
|
|
|
51,803 |
|
|
|
161,965 |
|
|
|
48,805 |
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,989,400 |
) |
|
$ |
(1,342,672 |
) |
|
$ |
(5,133,083 |
) |
|
$ |
(3,987,288 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Net Loss Per Share |
|
$ |
(0.42 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.72 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares-Basic and Diluted |
|
|
7,169,340 |
|
|
|
6,096,541 |
|
|
|
7,163,142 |
|
|
|
5,727,133 |
|
|
|
|
|
|
|
|
|
|
|
|
DUOS
TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
June 30 |
|
December 31 |
|
|
2023 |
|
2022 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash |
$ |
2,452,248 |
|
|
$ |
1,121,092 |
|
|
Accounts
receivable, net |
|
286,871 |
|
|
|
3,418,263 |
|
|
Contract
assets |
|
1,006,791 |
|
|
|
425,722 |
|
|
Inventory |
|
1,544,755 |
|
|
|
1,428,360 |
|
|
Prepaid
expenses and other current assets |
|
496,545 |
|
|
|
441,320 |
|
|
|
|
|
|
|
Total
Current Assets |
|
5,787,210 |
|
|
|
6,834,757 |
|
|
|
|
|
|
|
Property and
equipment, net |
|
609,941 |
|
|
|
629,490 |
|
|
Operating
lease right of use asset |
|
4,534,593 |
|
|
|
4,689,931 |
|
|
Security
deposit |
|
550,000 |
|
|
|
600,000 |
|
|
Convertible
note receivable, net |
|
150,625 |
|
|
|
- |
|
|
Patents and
trademarks, net |
|
92,603 |
|
|
|
69,733 |
|
|
Software
development costs, net |
|
579,655 |
|
|
|
265,208 |
|
|
|
|
|
|
TOTAL ASSETS |
$ |
12,304,627 |
|
|
$ |
13,089,119 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Accounts
payable |
$ |
760,029 |
|
|
$ |
2,290,390 |
|
|
Notes
payable - financing agreements |
|
259,062 |
|
|
|
74,575 |
|
|
Accrued
expenses |
|
302,108 |
|
|
|
453,023 |
|
|
Equipment
financing payable-current portion |
|
- |
|
|
|
22,851 |
|
|
Operating
lease obligations-current portion |
|
769,563 |
|
|
|
696,869 |
|
|
Contract
liabilities |
|
2,439,640 |
|
|
|
957,997 |
|
|
|
|
|
|
|
Total
Current Liabilities |
|
4,530,402 |
|
|
|
4,495,705 |
|
|
|
|
|
|
|
Operating
lease obligations, less current portion |
|
4,389,690 |
|
|
|
4,542,943 |
|
|
|
|
|
|
|
Total
Liabilities |
|
8,920,092 |
|
|
|
9,038,648 |
|
|
|
|
|
|
Commitments and Contingencies (Note 4) |
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Preferred stock: $0.001 par value, 10,000,000 authorized, 9,446,000
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, 2023 and
December 31, 2022, |
|
|
|
|
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 June 30, 2023 and
December 31, 2022, |
|
|
|
|
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 June 30, 2023 and December 31,
2022, respectively, |
|
|
|
convertible into common stock at $5.50 per share |
|
- |
|
|
|
- |
|
|
Series D convertible preferred stock, $1,000 stated value per
share, 4,000 shares designated; |
|
|
|
1,299 and 1,299 issued and outstanding at June 30, 2023 and
December 31, 2022, |
|
|
|
|
respectively, convertible into common stock at $3 per share |
|
1 |
|
|
|
1 |
|
|
Series E convertible preferred stock, $1,000 stated value per
share, 30,000 shares |
|
|
|
|
designated; 4,000 and 0 issued and outstanding at June 30, 2023 and
December 31, 2022, |
|
|
|
respectively, convertible into common stock at $3 per share |
|
4 |
|
|
|
- |
|
|
Common stock: $0.001 par value; 500,000,000 shares authorized,
7,240,545 and 7,156,876 |
|
|
|
shares issued, 7,239,221 and 7,155,552 shares outstanding at June
30, 2023 and |
|
|
|
|
December 31, 2022, respectively |
|
7,240 |
|
|
|
7,156 |
|
|
Additional
paid-in-capital |
|
61,029,659 |
|
|
|
56,562,600 |
|
|
Accumulated
deficit |
|
(57,494,917 |
) |
|
|
(52,361,834 |
) |
|
Sub-total |
|
3,541,987 |
|
|
|
4,207,923 |
|
|
Less: Treasury stock (1,324 shares of common stock at June 30, 2023
and December 31, |
|
|
|
2022) |
|
(157,452 |
) |
|
|
(157,452 |
) |
Total Stockholders' Equity |
|
3,384,535 |
|
|
|
4,050,471 |
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
12,304,627 |
|
|
$ |
13,089,119 |
|
|
|
|
|
|
|
DUOS
TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
|
|
|
For the Six Months Ended |
|
June 30 |
|
2023 |
|
2022 |
|
|
|
|
Cash
from operating activities: |
|
|
|
Net loss |
$ |
(5,133,083 |
) |
|
$ |
(3,987,288 |
) |
Depreciation
and amortization |
|
230,592 |
|
|
|
145,627 |
|
Stock based
compensation |
|
302,743 |
|
|
|
438,809 |
|
Stock issued
for services |
|
65,000 |
|
|
|
80,000 |
|
Amortization
of operating lease right of use asset |
|
155,338 |
|
|
|
158,547 |
|
Changes in
assets and liabilities: |
|
|
|
Accounts receivable |
|
3,131,392 |
|
|
|
1,458,592 |
|
Note receivable |
|
(150,625 |
) |
|
|
- |
|
Contract assets |
|
(581,069 |
) |
|
|
(698,923 |
) |
Inventory |
|
(116,393 |
) |
|
|
(481,880 |
) |
Security deposit |
|
50,000 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
403,225 |
|
|
|
(218,198 |
) |
Accounts payable |
|
(1,530,361 |
) |
|
|
268,425 |
|
Accrued expenses |
|
(150,914 |
) |
|
|
(108,550 |
) |
Operating lease obligation |
|
(80,559 |
) |
|
|
46,485 |
|
Contract liabilities |
|
1,481,643 |
|
|
|
3,186,138 |
|
|
|
|
|
Net
cash (used in) provided by operating activities |
|
(1,923,071 |
) |
|
|
287,784 |
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
Purchase of patents/trademarks |
|
(28,720 |
) |
|
|
(13,660 |
) |
Purchase of software development |
|
(360,437 |
) |
|
|
(15,000 |
) |
Purchase of fixed assets |
|
(159,203 |
) |
|
|
(140,549 |
) |
|
|
|
|
Net
cash used in investing activities |
|
(548,360 |
) |
|
|
(169,209 |
) |
|
|
|
|
Cash flows
from financing activities: |
|
|
|
Repayments of insurance and equipment financing |
|
(273,965 |
) |
|
|
(213,404 |
) |
Repayment of finance lease |
|
(22,851 |
) |
|
|
(48,812 |
) |
Proceeds from common stock issued |
|
- |
|
|
|
6,095,000 |
|
Issuance cost |
|
(17,645 |
) |
|
|
(576,650 |
) |
Proceeds from shares issued under Employee Stock Purchase Plan |
|
117,048 |
|
|
|
- |
|
Proceeds from preferred stock issued |
|
4,000,000 |
|
|
|
- |
|
|
|
|
|
Net
cash provided by financing activities |
|
3,802,587 |
|
|
|
5,256,134 |
|
|
|
|
|
Net
increase (decrease) in cash |
|
1,331,156 |
|
|
|
5,374,709 |
|
Cash, beginning of period |
|
1,121,092 |
|
|
|
893,720 |
|
Cash, end of period |
$ |
2,452,248 |
|
|
$ |
6,268,429 |
|
|
|
|
|
Supplemental Disclosure of Cash Flow
Information: |
|
|
|
Interest
paid |
$ |
4,410 |
|
|
$ |
5,984 |
|
Taxes
paid |
$ |
- |
|
|
$ |
- |
|
|
|
|
|
Supplemental Non-Cash Investing and Financing
Activities: |
|
|
|
Notes issued
for financing of insurance premiums |
$ |
458,452 |
|
|
$ |
327,586 |
|
|
|
|
|
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c330ebb5-11d3-4e14-a8af-01aa754273b0
Contacts
Corporate
Fei Kwong, Director, Corporate Communications
Duos Technologies Group, Inc. (Nasdaq: DUOT)
904-652-1625
fk@duostech.com
Investor Relations
Matt Glover or Tom Colton
Gateway Investor Relations
949-574-3860
DUOT@gateway-grp.com
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