Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

——————

FORM 8-K

——————

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 14, 2023

——————

Duos Technologies Group, Inc.

(Exact name of registrant as specified in its charter)

——————

Florida	001-39227	65-0493217
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

7660 Centurion Parkway, Suite 100, Jacksonville, Florida 32256

(Address of Principal Executive Offices) (Zip Code)

(904) 296-2807

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock (par value $0.001 per share)		DUOT		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 14, 2023, Duos Technologies Group, Inc. (the "Company") issued a press release announcing the financial and operating results of the Company for the quarter and six months ended June 30, 2023. The text of the press release is furnished as Exhibit 99.1 and incorporated herein by reference.

Additionally, on August 14, 2023, the Company held an earnings phone call open to the public (the "Earnings Call"). Mr. Chuck Ferry, the Company's Chief Executive Officer, along with Mr. Andrew W. Murphy, the Company's Chief Financial Officer, discussed the financial and operating results of the Company for the quarter and six months ended June 30, 2023. The transcript of the Earnings Call is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

The information set forth in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.

The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

The press release and transcript of the Earnings Call may also be found on our website at https://www.duostechnologies.com/.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description of Exhibit
99.1		Press Release, dated August 14, 2023
99.2		Transcript of Earnings Call with Mr. Chuck Ferry and Mr. Andrew W. Murphy, dated August 14, 2023.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	DUOS TECHNOLOGIES GROUP, INC.


Dated: August 15, 2023	By:	/s/ Andrew W. Murphy
		Andrew W. Murphy Chief Financial Officer
		Andrew W. Murphy Chief Financial Officer

Exhibit 99.1

Duos Technologies Group Reports Second Quarter 2023 Results

JACKSONVILLE, FL / Globe Newswire / August 14, 2023 - 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.

Duos Technologies Group Reports Second Quarter 2023 Results

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 Results

It 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, 2023

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: 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.

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

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 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	$	—		$	1,264

Supplemental Non-Cash Investing and Financing Activities:
Notes issued for financing of insurance premiums	$	458,452		$	327,586

Exhibit 99.2

Duos Technologies Group, Inc.

Second Quarter 2023 Earnings Conference Call

August 14, 2024

Presenters

Chuck Ferry, CEO and Director

Andrew Murphy, CFO

Q&A Participants

Aditya Dagaonkar - Northland Capital

Edward Woo - Ascendiant Capital Markets

Operator

Good afternoon. Welcome to Duos Technologies Second Quarter 2023 Earnings Conference Call.

Joining us for today's call are Duos' CEO, Chuck Ferry, and CFO, Andrew Murphy. Following their remarks, we will open the line for your questions. Then, before we conclude today's call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call.

Now, I'd like to turn the call over to Duos' CEO, Chuck Ferry. Sir, please proceed.

Chuck Ferry

Welcome, everyone, and thank you for joining us. Earlier today, we issued a press release announcing our financial results for the second quarter, as well as other operational highlights.

A copy of the press release is available in the Investor Relations section of our website. I encourage all listeners to view that release, as well as our 10-Q filing with the SEC to better understand some of the details we'll be discussing during our call.

Now, let's get started. About two weeks from now, September 1, I will have served as CEO for Duos Tech for three years. For those that know me, I have successfully led turnarounds with several businesses and military organizations over the past 35 years and, instinctively, have learned to recognize when an organization is turning the corner and is now ready for prime time.

Duos Tech is very much ready for prime time and looking forward is in the best position ever, with a clear pathway in the next 12 to 24 months to achieve our strategy and achieve financial profitability.

There are two key things investors should be watching, right now. The first is the Railway Safety Act, which is steadily making its way through Congress. If passed, this bill will call for the FRA to write regulations on the use of wayside detection systems, which includes our technology.

Since the derailment in East Palestine, Ohio, six months ago, our commercial inquiries have skyrocketed. My sense is that regardless of whether this bill passes or not, Duos will benefit from the renewed focus on safety across the industry.

We are currently in discussions with all the Class 1s and many car owners and shippers about how they can benefit from our railcar inspection portal. We have had the opportunity to highlight our technology and benefits to the FRA, Transport Canada and the heads of key labor unions. Everyone who sees the technology understands it is the way of the future.

The second thing investors should watch is the artificial intelligence revolution. AI has been a hot topic for several years, but even more so in the last six months. The rail industry is certainly implementing AI, throughout its operations. In this regard, Duos' has made significant advances in the development of our AI.

We believe our AI portfolio of over 40 use cases that directly correlate to FRA and AAR defects has already prevented many derailments, improved safety, and the system is now being used by at least two of our major railroad customers to support regulatory waivers or waiver applications.

There are certainly other pureplay AI or machine vision companies assisting the rail sector, but none of them provide a turnkey solution like Duos, where we integrate all aspects of hardware, software, IT and AI making it the most technologically advanced and reliable machine vision AI wayside detection system in the field.

I want to remind everyone what our strategy is. In the rail industry, we are expanding our current customer base and Class 1, short line, and passenger rail. More importantly, we have initiated our subscription business, closing our first subscription customer earlier this year, and have car owners and shippers that I expect to close in the coming quarters.

To accelerate expanding to the subscription business, we are in discussions with our current customers to buy back existing portals. Looking ahead, we have identified the first 10 new subscription portal locations. With this we have mapped out a plan to grow to a network of 40 to 50 portals with multiple subscribers each, in the coming 18 to 36 months.

We have also begun to address the multiple international inquiries that have been coming in. There is particular interest for a portal solution in European passenger rail sector, for example.

Our business platform and technology are ready to scale more rapidly, if necessary, in response to the Railway Safety Act and AI revolution.

Lastly, we expect to roll out a technical update of our truck inspection portal in FY 2024 and reengage in the trucking and intermodal industry where we have previous experience.

We've also strengthened our strategic partnerships with Dell Computers and NVIDIA. By integrating technology from Dell, NVIDIA and other industry leaders with our proprietary knowhow, we recently ran a test for acquiring and processing information at the edge. Our results show that we acquired and processed 85 gigabytes of data per second, simulating a train at 125 miles per hour.

To put this in simple terms, 85 gigabytes per second will fill up your personal laptop in approximately four seconds. The test validated our ability to scan a train at high speed and transmit important safety data in less than 60 seconds. For those familiar with wayside detection alerts, sending immediate defect information to a train operator and or dispatcher is critical to avoiding a derailment.

One final comment before turning it over to Andrew for the financials. As you know, Mr. Ed Harris, a 40 year railroad veteran, left our Board of Directors when he became the Chief Operating Officer at Canadian National Railroad, some months ago. I am pleased to announce that Mr. Frank Lonegro has recently joined our Board to backfill that director position.

Frank is a 30 year railroad veteran with leadership roles in finance, law, technology and operations, having enjoyed a distinguished career at CSX. Frank currently serves as a Chief Financial Officer for Beacon Roofing Supply, a Fortune 500 company.

Frank brings decades of leadership experience in key areas of transportation and industrial sectors, including rail operations and safety technology, strategic planning and financial and regulatory stewardship, all of which are vital to our strategy, going forward.

With that, I'll turn it over to Andrew to cover the financials, after which I'll address some more of the news on our subscription offering and discuss our risk areas. Andrew.

Andrew Murphy

Thank you, Chuck. I'll now briefly walk through our second quarter results before expanding on my view of the business.

Total revenue for Q2 2023 decreased 51% to $1.77 million, compared to $3.62 million in the second quarter of 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.

For the first six months of 2023, 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 $2.7 million of technology systems revenue and approximately $1.72 million in recurring services and consulting revenue.

The decrease in total revenue for both periods was driven by the certain external site factors of the customer that have delayed delivery of two high speed rail inspection portals.

Growth in the services portion of revenues was driven by the successful completion of two freight RIP railcar inspection portals earlier this year, as well as the deployment of additional artificial intelligence detections and represents services and support for those detections.

Cost of revenues for Q2 2023, decreased 33% to $1.56 million, compared to $2.33 million for Q2 2022, following a similar trend with revenue. The declining cost of revenues was mainly attributable to the company bearing the initial cost of procurement and allocation material for two high speed RIPs for a transit customer in Q2 2022, without related spend in Q2 2023.

The marginal increase in cost of revenues from services and consulting was attributed to higher labor costs, as well as cost associated with two new portals coming online during early 2023, as opposed to the corresponding period in 2022.

For the first six months of 2023, cost of revenues increased 3% to $3.67 million from $3.55 million in the same period, last year. The cost of revenues were largely flat on a year-over-year basis, largely due to timing of projects.

Gross margin for Q2 2023, decreased at 83% to $212,000, compared to $1.28 million for Q2 2022.

For the first six months of 2023, gross margin decreased 50% to $749,000 from $1.5 million in the same period, last year. The decrease in gross margin was driven by the timing delays of business activity in Q2 '23 related to the manufacturing delivery of two high speed transit focused RIPs for one customer.

Operating expenses for Q2 2023, increased 27% to $3.41 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 administrative costs, which can primarily be attributed to the timing of certain payroll related expenses that took effect in April 2023, which was a variance with the same period a year ago, largely due to timing.

Overall, the company continues to focus on maintaining operating expenses, while meeting the increasing needs of its customers. For the first six months of 2023, operating expenses increased 16% to $6.1 million from $5.54 million in the same period of last year.

The company maintained its cost of sales, marketing and research and development at a consistent level, while observing a slight rise in the general and administrative costs.

Net operating loss for Q2 2023, totals $3.2 million, compared to net operating loss of $1.39 million for Q2 of 2022. For the first six months of 2023, net operating loss totaled $5.35 million, compared to a net operating loss of $4.0 million in the same period of last year.

The increase in loss from operations was primarily the results of lower revenues recorded in the second quarter as a consequence of project delays previously noted, partially offset by continued increases in services and consulting revenue.

Net loss for Q2 2023, totals $3.04 million, compared to net loss of $1.34 million for Q2 2022. For the first six months of 2023, net loss totaled $5.19 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, along with growing expenses.

For the three months ended June 30, 2023 and 2022, net loss per common share was $0.42 and $0.22, respectively. And for the six months ended June 30, 2023 and 2022, net loss per common share was $0.72 and $0.70, respectively.

Now, let's discuss the balance sheet. We ended the quarter with approximately $2.45 million in cash and cash equivalents, compared to $1.1 million at December 31, 2022. We had an additional $286,000 receivables and $1.54 million of inventory consisting of product primarily of long lead items for two pending 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 early August of 2023 with an investor and an at the market offering equivalent to $6.20 per share.

As a result of these transactions, the company currently has approximately $5 million in cash and cash equivalents--excuse me, the company has approximately $6 million in cash and cash equivalents.

In summary, our cash position is strong and we are adequately capitalized to execute our current plans. Duos has been fortunate to have the support of our long term shareholders as evidenced with our most recent capital infusion, who also see a bright future for Duos on the horizon, and we appreciate their continued support as we implement our subscription platform.

I'd now like to provide an update on our financial projections. At the end of the second quarter, our contracts in backlog represented approximately $7.8 million in revenue, of which approximately $3 million to $5 million is expected to be recognized during the remainder of 2023, and the balance of the contract backlog is comprised of multi-year services and software agreements, as well as project revenues spanning into fiscal year 2024.

Based on these committed contracts and visibility to near term pending orders that are expected to be executed throughout the course of 2023, as well as the planned expansion of our subscription business model and other contributing factors, we are reiterating our previously stated revenue expectations for the fiscal year ended December 31, 2023.

We expect total revenue for 2023 to range between $20 million and $21 million, representing a 33% to 40% increase, compared to 2022. We expect the improvement in operating results to be reflected over the course of the full year in 2023.

As a result of timing and other factors, we expect revenues in the third quarter to moderately increase, compared to the second quarter of 2023, before ramping up significantly in the fourth quarter and into 2024.

I'd now like to touch on my outlook for Duos. As our long term shareholders know, Duos typically transitions between periods of growth interspersed with pauses as new contracts begin the execution cycle. In fact, in Duos' history, the company typically has operated in an 18 to 24 month cycle with the quarterly and annual results reflecting reality of that cycle for CapEx oriented sales.

Duos has studied the value proposition of the RIP product, whereby the data delivered across time provides significant returns to users, well beyond the initial CapEx point of sale.

To improve the revenue profile of the company and refocus it with the value delivered via the RIP solution late last year, the company undertook a transition of its core business to a recurring revenue model. We are now beginning the execution phase of that transition cycle. This is a major positive step for Duos’ long term horizon, but does bring challenges as the company balances demonstrable short term revenue growth, while not mortgaging its future.

As we indicated earlier this year, 2023 is a year of transition for Duos. My assessment of our progress is that we are on track to complete the transition by the end of 2023 through a series of commercial successes and the execution of several strategic initiatives underway, but still expect to turn in a revenue performance that will provide year-over-year growth.

As Chuck mentioned, we remain encouraged by the commercial opportunities that have begun to present themselves, though we understand that increased revenues and profitability must remain top of mind. As previously noted, the primary challenge we anticipate is timing of contracts and revenue recognition.

As such, we saw a slowdown in the second quarter due to delays by customers, which we expect to moderately improve in the third quarter before picking up again later this year.

We are, proactively, managing this with contract modifications across current customers, as well as other commercial operators. And currently, we do not anticipate a change to our financial guidance for the year. We anticipate in the near term announcing additional commercial and strategic successes, which will contribute to our 2023 results and increase our backlog for 2024, and beyond.

This concludes my financial commentary. I'll now pass the call back over to Chuck.

Chuck Ferry

Thanks, Andrew.

As we have discussed on this call and during previous ones, expanding from a CapEx only business to a heavier mix of subscription is critical for the long term, but there are short term pressures on revenue and risk of timing. As such, let's discuss the subscription strategy and progress made implemented.

In July, we implemented our first subscription services agreement with a passenger rail - passenger transit operator. The agreement, renewable annually, is initially valued at $300,000 per year and encompasses customer training, installation and railcar data services across three existing Class 1 portals.

This is important because this customer is very thoughtfully planning and testing ,while they will use the safety data from our solution to improve overall operating schema. This is in preparation for when they expect to further expand the use of portals and a combination of CapEx and subscription formats.

We are currently awaiting a decision award with a short line rail operator to install subscription portal in the Southeastern United States, later this year. This multi-year deal will allow for multiple subscribers and includes a partnership where Duos can validate new technology in a live portal. We're also awaiting notice from existing Class 1 customers for additional portals as part of their FY '24 capital budgets, which are being formulated at this time.

We are currently working with a number of car owners and shippers who have expressed strong interest in subscriptions to assist them in the best ways to incorporate the data into their operations.

On the surface, car owners and shippers may seem the same but, in reality, each has its own operational challenges, and we are finding our subscription offering is very flexible in providing what they need now and capable of expanding in the future.

As I've mentioned previously, we are in discussions with our current customers to buy back existing portals and then operate them as a turnkey solution with multiple subscribers on each portal. If successful, this will accelerate our subscription plan.

At the same time, we have identified the next ten subscription portal locations based on a corridor and key interchange point strategy that our veteran railroaders have crafted, and we are in discussions with the owners of those right of way locations, at this time. While we advance our subscription plan, it may require some near term decision to invest in subscription portals, while foregoing opportunities to sell CapEx portals.

The opportunity with Southeastern and Shortline railroad I mentioned above is an example of that. The decision to forego projects that could be near term CapEx opportunities that would provide more immediate revenue results versus taking a five to 10 year opportunity with far greater revenue potential via a subscription portal is what we're really thinking about.

Ultimately, we know that a business based primarily on revenue--on recurring revenue with better margins is a pathway to profitability because it allows us to add multiple subscribers at each portal, thus increasing the total revenue that can be achieved from a single installation.

Other benefits of the expansion into subscription include allowing Duos to make technological updates at our pace, which is often faster than our conversion cycle under the CapEx format.

Those updates will benefit not just one customer at their own portal but everyone who has access to a subscription, allowing Duos to make the investment to build out a portal network so that the initial CapEx outlay can be eliminated as a challenging cost hurdle for the rail operators, car owners or shippers.

Building a technology roadmap for our customers allowing them to access our full portfolio, thereby allowing the greatest number of customers to improve the safety of their operations and the maintenance of their cars.

So, let's discuss risks. As Andrew mentioned earlier, Duos and its current CapEx weighted revenues format makes quarter-to-quarter consistency challenging. As an example, we have experienced project delays beyond our control with our largest passenger customer.

However, the good news is that this is offset by contract modifications that have added 40% of contract value, which is worth more than $4 million of additional revenue for this project.

Rather, you should look at us over a longer period and consider the potential upside given a successful transition to our subscription model. Near term, we'll continue to thoughtfully take risks and pursuing subscription opportunities versus CapEx. However, we will have a blend of both for at least the next several years.

I'm certainly no stranger to risk management, so you can bet we are, proactively, working on plans to mitigate this timing risk. And so I'm reaffirming our guidance for FY '23, at this time.

In closing, between pending government legislation, skyrocketing interest in AI and a commercial demand across the rail industry 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 position ever, and we look forward to capitalizing on our opportunities ahead.

And with that, we're ready to open the call for your questions. So, Operator, if you would please provide the appropriate instructions.

Operator

Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press “*”, “1” on your telephone keypad. A Confirmation tone will indicate your line is in the question queue. You may press “*”, “2” if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset, before pressing the star keys.

One moment, please, while we poll for questions.

Our first question comes from Mike Latimore with Northland Capital. Please proceed with your question.

Aditya Dagaonkar

Hi, this is Aditya on behalf of Mike Latimore. Could you give some color on what would be the revenue mix between services and systems revenue for this year?

Chuck Ferry

Yeah, this is Chuck. Thanks for the question. I'll kind of start this out. I think, one of the--when we start with this question, this is kind of, how do we feel about the rest of the year. And then I'll let Andrew kind of talk about what that mix looks like. I would say look, basically, we have a plan to meet our 2023 guidance through a mix of existing contract mods and the installation of at least two more portals, by the end of the year.

And I would note that we already have about $1.5 million worth of the long lead items on hand for these two portals, and we’re in active discussions with several customers who want them, before year end.

And I'll turn it over to Andrew to maybe talk about what that mix looks like.

Andrew Murphy

Sure, I think to Chuck's point, we will still have a very heavy CapEx focus in the second half of the year. However, right now, we are undertaking several strategic initiatives that have allowed Duos to very quickly phase into the subscription program.

And so, I think while it may not be a significant or meaningful amount of overall revenue by the end of this year, I expect we're going to establish a large recurring base for future years for our subscription program.

So I think in 2022, we had an 80%-20% split between CapEx and recurring revenues. We anticipate that that will grow, especially in the latter half of 2023, but we expect some of those results to bear more fruit going into 2024.

Aditya Dagaonkar

All right. And could you also give some more color on the portal cashless buyback?

Chuck Ferry

Yeah, we'll talk about it in concept just because we're in discussions at this point and certainly those are sensitive and we will not talk about the customers, themselves. But basically, the concept is that look, we have customers that have purchased portal, existing portals. And obviously, we provide services and maintenance and software licensing for those on a recurring basis.

The concept is that they would return ownership of those portals to us. We would then own and operate and basically run them as a turnkey solution to them. Part of that would include providing technology updates for them, in some cases, introducing new subsystems that are being developed, right now. And basically, then being able to more rapidly respond to those sorts of things.

The concept, though, is that we would basically provide services for that base customer, if you will, with services in kind for the next few years to basically pay down the buyback price. So this has been very favorably--very favorably received. And we're in active discussions. And I'm hopeful to be able to, announce maybe in the next few months success with that, which will accelerate our subscription efforts.

Aditya Dagaonkar

All right. Thank you.

Operator

As a reminder, if you would like to ask a question, please press “*”, “1” on your telephone keypad. One moment, please, while we pull for questions.

Our next question comes from Ed Woo with Ascendiant Capital Markets. Please proceed with your question.

Edward Woo

Yeah, thank you very much for taking my question. My question is very, on a very general topic- AI. You guys been, obviously, using it in your technology for a long time; it's getting a lot of buzz. But can you just quickly talk about how you guys are able to advance it and make your product even better so that everybody kind of knows your involvement with it? Thank you.

Chuck Ferry

Yeah, so, we've talked to both of this format, and others. We are currently right now in the machine vision, wayside detection area. Duos is the only company that does--that performs, basically, all of the necessary tasks to produce good AI.

And by that, I mean our solution, we control the proprietary aspects of all the hardware, software, IT and artificial intelligence. There are other--there are some Class 1 customers and others out there that are using some other machine vision technology from competitors. What they are having to use third-party AI providers.

So, what they're having to do is they're basically -- they're not in control of all aspects of the AI. This is very, very important, because in this machine vision AI for moving railcars, any small slight changes that you make in the hardware, the software, the IT and the AI will offset and cause the AI to not perform very well. And so, and this is feedback we're getting from some of the Class 1 operators that use our competitors’ equipment.

So, the big difference and advances for us is that we still perform it all in-house. We have a very experienced team that also includes mechanical car inspectors in our AI development team. It's not a very large team, but it's a very, it's a very talented team.

And the other key aspect is our current customers participate and provide excellent information and data points for us to make sure that the AI that we develop is meaningful. It's focused on things that cause derailments, and it's directly correlated to FRA and AAR mandated inspection points. I hope that answers your question.

Edward Woo

Yes, thank you very much. And I wish you guys, good luck. Thank you.

Chuck Ferry

We appreciate it. Thank you. We will wait for the next question. Go ahead.

Operator

Okay. Management will now take select listeners’ submitted questions?

Chuck Ferry

Yes. Thank you. So, we've had a couple of questions kind of come in, over the last week or so. One of the questions that we have right now is, the question is, do you expect the recent derailments to drive more sales in the next 12 months?

You know, look, the rail industry, Duos Tech included and all of our current customers' safety is absolutely paramount and first and foremost and front and center for the entire industry. I would say that, since the East Palestine events made us certainly put a lot more focus and emphasis on rail safety, there's considerable efforts in Congress, right now, to pass the bill.

Congress, of course, is in recess right now, but we have been told when they come out of recess, certainly the Senate will hear the bill on the floor during the month of September. But I think even regardless of that, you're going to see a drive to adopt more technology like ours on a go forward basis.

I think now that the FRA and Transport Canada, as well as some of the labor unions, have gotten more familiar with our technology and others like it. I think they're starting to get more comfortable with it, and the pace is going to pick up, regardless. So, we never want to see more derailments, but I think it's certainly going to be our focus on a go forward basis.

Another question we have here is, and I think I'll let Andrew take this one is, what does success look like for the business here over the next couple of quarters?

Andrew Murphy

Yeah, that's a great question. I think success for us looks like a combination of CapEx sales, as we mentioned in the earnings call, which will continue over the next several years and just continuing to be a core component of our business. But an expansion of our offerings with our existing customers, but really a continued focus on our recurring revenues.

While CapEx is certainly valuable to us and helps in terms of the near term revenue recognition and will continue to be a part of that offering, the company really wants to continue to focus on that recurring revenue, with a target to grow recurring revenues to 50 plus percent of annual revenue or more. While this won't happen overnight, we do believe we are laying the groundwork with strategic initiatives in 2023.

As we talked about earlier, in 2022, our recurring revenues, without subscription customers, was approximately 20% of our total revenue and we believe we can grow that figure out, significantly.

Coupled with that, we will also be able to achieve a sustainable breakeven on both cash flow and net profit, as we phase into subscription model.

Chuck Ferry

Yeah, I'll do one more here and then we'll turn it back over if there's any more questions. But this question came in, again, asking for a bit of an update about the proposed legislation that's making its way through Congress, the Railway Safety Act. And what's the likelihood of the FRA mandating automated inspections?

I just want to remind our investors and those who will read the transcripts afterwards, at this moment right now, the FRA does not currently have any regulatory authority over the use and deployment of wayside detection devices. That is largely left in the hands of the Class 1 railroads and other rail operators to employ those systems.

So, if this bill is to pass--will pass, there's a section in there that's very specific that the FRA, more importantly, the Department of Transportation Secretary will be required to within one year to write a regulation that will--write a set of regulations and standards around the use of wayside detection devices.

And it's our understanding that the wayside detection devices will not just be--it’ll be heat detection devices, impact detection devices, and also machine vision and camera detection devices.

So again, this is kind of a big deal if it does pass. But again, I think the industry is already headed this direction, anyway. And so, regardless of the bill, our strategy remains solid, regardless whether it passes or not.

So, operator, I'll turn it over to you. If we have more questions, we'll take them, but if not, we'll turn it back over to you for closing statements.

Operator

At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Ferry for his closing remarks.

Chuck Ferry

Thank you, Operator, and thank you, everybody, for joining. Again, I also very much appreciate our shareholders, our current shareholders, especially our long-term shareholders who have been very, very supportive of us and understand the potential that we have and what this new model means for us in terms of value.

So, thank you everybody for attending, and I'll turn it back over to our moderator to complete the call.

Operator

Before we conclude today's call, I would like to provide Duos' Safe Harbor statement that includes important cautions regarding forward-looking statements made during this call. This earnings call contains forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as believes, expects, may, will, should, anticipates, plans and their opposites or similar expressions are intended to identify forward-looking statements.

We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based and could cause Duos Technologies Group actual results to differ, materially, from those anticipated by the forward-looking statements.

These risks and uncertainties include, but are not limited to those described in the item 1A in Duos’ Annual Report on Form 10-K, which is expressly incorporated herein by reference and other factors, as may periodically be described in Duos’ filing with the SEC.

Thank you for joining us today for Duos Technologies Group second quarter 2023 conference call. You may now disconnect.

Cover	Aug. 14, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 14, 2023
Entity File Number	001-39227
Entity Registrant Name	Duos Technologies Group, Inc.
Entity Central Index Key	0001396536
Entity Tax Identification Number	65-0493217
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	7660 Centurion Parkway
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Jacksonville
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32256
City Area Code	(904)
Local Phone Number	296-2807
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock (par value $0.001 per share)
Trading Symbol	DUOT
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false