Duos Technologies Group, Inc. (DUOT): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Duos Technologies Group, Inc. after its major 2025 pivot, and honestly, it's a big shift from just rail inspection to a dual focus on energy asset management and decentralized Edge Data Centers (EDCs). As someone who's mapped these transitions for years, I see the core strategy now hinges on recurring service revenue-hitting about $17.2 million in the first nine months of 2025-backed by a solid $35 million-plus in liquidity as of Q3 2025, with zero debt. This new model, which targets deploying 15 EDCs by year-end 2025 while managing gas turbines for New APR Energy, is what drives their $28 million to $30 million revenue guidance for the full year. Dive into the canvas below to see exactly how their Key Partnerships with players like NVIDIA and Dell, and their focus on high-margin energy support, translate into this complex, yet potentially rewarding, new structure.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Duos Technologies Group, Inc. relies on to drive its dual focus on energy services and Edge Data Centers (EDC). These aren't just vendor relationships; they are strategic alignments that directly translate to revenue recognition and market expansion.

Asset Management Agreement (AMA) with New APR Energy

The Asset Management Agreement (AMA), originally signed on December 31, 2024, with affiliates of Fortress Investment Group (who acquired assets from APR Energy), is a massive revenue driver for Duos Energy Corporation. This agreement covers the management, sales, and operational support for a fleet of mobile gas turbines and balance-of-plant inventory, which has a combined generation capacity of 850 megawatts.

The financial impact of this partnership was clear through the first nine months of 2025:

• Total revenue for the first nine months of 2025 reached $17.57 million.
• Recurring services and consulting revenue for the first nine months of 2025 totaled approximately $17.2 million.
• In Q3 2025 alone, revenue from the AMA was $5.15 million out of $6.88 million total revenue.
• In Q2 2025, services related to the AMA generated approximately $4.76 million.
• In Q1 2025, the AMA contributed over $3.9 million in Services and Consulting revenue.
• The contract value was estimated at $42 million over its two-year term.

Furthermore, Duos Energy holds a 5% non-voting equity interest in the ultimate parent of New APR, which provides high-margin revenue. For instance, in Q2 2025, this equity interest contributed $904,125 in revenue recognized at a 100% margin.

Technology Partners for Edge Data Centers and RIP Deployment

Duos Edge AI accelerates its EDC deployment by partnering with fiber network providers to ensure low-latency connectivity. The expanded strategic alliance with FiberLight, LLC, announced in August 2025, is key to this infrastructure buildout.

Here's what the FiberLight alliance brings to the table for EDC deployment:

Metric	Data Point	Context
FiberLight Network Span (Texas)	Approximately 13,000 route miles	Connects major markets like San Antonio, Austin, Dallas, Houston, McAllen, Laredo, and El Paso.
Corpus Christi Regional Infrastructure	Approximately 75 route miles	Specific infrastructure leveraged in a recent deployment that saved 2,000 feet of new construction.
Target EDC Contracts (End of 2025)	On track to contract 15 EDCs	This is supported by the deployment of the sixth EDC, with an additional nine scheduled for Q4 2025.
EDC Power Capacity	100 kW+ per cabinet	Modular, SOC 2 Type II compliant EDCs designed for rapid delivery.

For its core technology, Duos Technologies Group was awarded U.S. Patent No. 12,404,690 B1 for its Entryway for a Modular Data Center, which positions the company as a differentiated provider in the digital infrastructure market. The company is also awaiting customer readiness for field installation of its two high-speed Railcar Inspection Portals (RIPs).

Key Manufacturing Partners for Duos Technology Solutions

Duos launched Duos Technology Solutions to handle procurement and infrastructure services, supporting its Edge Data Center growth. While the company is actively managing the production cycle for its technology systems, including the RIPs, specific financial details tied to named manufacturing partners for these solutions were not detailed in the latest public filings.

What we know about the technology systems pipeline:

• Technology systems revenue for Q3 2025 was approximately $263,000.
• Technology systems revenue for the first nine months of 2025 was approximately $370,000.
• The cost of revenues for technology systems continues to decline compared to 2024 periods, partly due to reallocating fixed operating costs to support the AMA.

Finance: draft 13-week cash view by Friday.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Key Activities

You're looking at the core engine driving Duos Technologies Group, Inc. right now, which is heavily weighted toward energy services and infrastructure deployment as of late 2025. The key activities reflect a pivot toward recurring revenue streams from large-scale contracts.

Deploying and operating Edge Data Centers (EDCs)

A major activity is the physical deployment and ongoing operation of modular Edge Data Centers (EDCs) through the Duos Edge AI subsidiary. The company confirmed it is on pace to have 15 Edge Data Centers under contract by the end of 2025. By the second quarter of 2025, Duos Technologies Group had ordered ten data centers and was targeting that 15-unit goal by year-end. The first production standalone EDC launched with revenues starting in June 2025. The deployment pace saw the 5th Edge Data Center go live in September 2025. Looking ahead, the plan includes an additional fifty Edge Data Centers for 2026.

Managing mobile gas turbines and related energy assets for New APR

Managing the Asset Management Agreement (AMA) with New APR Energy LLC is a critical, high-revenue activity. As of May 2025, Duos Technologies Group had successfully contracted 570 megawatts of capacity with the gas turbine fleet, with expectations to reach approximately 730 megawatts imminently. This segment, Duos Energy, is the primary revenue driver. For the first nine months of 2025, total revenue hit $17.6 million, with approximately $17.2 million coming from recurring services and consulting revenue tied to the AMA. In Q2 2025 alone, Services and Consulting revenue was over $5.69 million, including $4.76 million specifically for AMA services. The operational side included completing mobilization and installation of six gas turbine generators (150MW) in Mexico and four additional generators at a Hyperscaler site in Tennessee by the end of Q2 2025.

Developing and integrating proprietary AI/Machine Vision software (RIP, truevue360)

While the focus has shifted to infrastructure and energy services, the development and integration of proprietary software remain a core activity. The Railcar Inspection Portal (RIP) product line, which uses AI and imaging for automated train defect detection, has experienced delays outside the Company's control, impacting its direct revenue contribution. Technology systems revenue, which would include these software sales, was only approximately $370,000 for the first nine months of 2025. For Q3 2025, technology systems revenue was reported at about $263,000.

Providing high-touch, multi-year service and software support

Securing multi-year service and software agreements underpins the long-term financial stability. The company expects to enter 2026 with more than $3 million in annual recurring revenue just from the Edge Data Center business. The high-margin nature of these services significantly improved profitability metrics; gross margin rose to $1.52 million in Q2 2025. By Q3 2025, the gross margin increased 174% to $2.5 million compared to the same quarter in 2024, largely due to the performance under the AMA. The total contracted backlog stood at $40.7 million at the end of Q2 2025, with about $18 million expected to be recognized in the remainder of 2025.

Here's a quick look at the revenue breakdown for the first three quarters of 2025:

Metric	Q1 2025 Amount	Q2 2025 Amount	Q3 2025 Amount	9 Months 2025 Total
Total Revenue	$4.95 million	$5.74 million	$6.88 million	$17.6 million
Recurring Services & Consulting Revenue	$4.89 million	$5.69 million	Approx. $6.6 million	Approx. $17.2 million
Technology Systems Revenue	$64,684	Approx. $40,000	Approx. $263,000	Approx. $370,000

The overall 2025 consolidated revenue guidance remains between $28 million and $30 million.

You can see the operational focus clearly in the gross margin contribution:

• Gross margin for Q3 2025 increased 569% year-over-year to $5.4 million.
• Q3 2025 gross margin was $2.5 million, a 174% increase from Q3 2024.
• A portion of this margin includes revenue recognized from the 5% non-voting equity interest in New APR's parent, contributing at a 100% margin.

Finance: draft 13-week cash view by Friday.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Key Resources

You're looking at the core assets Duos Technologies Group, Inc. (DUOT) relies on to execute its strategy as of late 2025. These aren't just abstract concepts; they are concrete, measurable things or financial positions that underpin their operations across technology, energy services, and edge computing.

Proprietary Technology and Development Assets

The foundation of the technology segment rests on specialized intellectual property. Duos Technologies Group, Inc. (DUOT) possesses proprietary Railcar Inspection Portal (RIP) technology coupled with AI algorithms designed for real-time analysis of fast-moving vehicles.

Regarding the physical deployment of this technology, as of Q2 2025, the company noted a temporary slowdown in project activity related to the manufacturing ramp-down ahead of field installation for two high-speed Railcar Inspection Portals, pending customer readiness for site deployment. The overall research and development expenses fell by 21% in Q2 2025, owing to the complete development and testing of prospective technologies.

Financial Strength and Capital Position

A key resource is the company's balance sheet strength, which supports ongoing growth initiatives without the drag of interest payments. Duos Technologies Group, Inc. (DUOT) has actively worked to shore up its cash position while eliminating leverage.

Here is a look at the financial standing as reported for the third quarter ended September 30, 2025:

Financial Metric	Amount as of September 30, 2025
Cash and Cash Equivalents	$33.20 million
Debt	Retired all debt
Cash Runway (Based on prior year burn rate)	About 2.0 years

Honestly, having $33.20 million in cash and zero debt gives Duos Technologies Group, Inc. (DUOT) a solid runway to execute its plans.

Edge Data Center (EDC) Infrastructure Pipeline

The Duos Edge AI subsidiary's pipeline of Edge Data Centers (EDCs) represents a significant tangible asset under development, crucial for their recurring revenue goals. The company is executing a focused deployment plan targeting underserved U.S. markets.

The status of the EDC deployment goal as of late 2025 reporting includes:

• Target for EDCs under contract by year-end 2025: 15.
• EDC locations commercially identified as of May 2025: Nine.
• EDCs deployed as of November 2025: The sixth Edge Data Center.
• EDCs scheduled for Q4 2025 deployment: An additional nine.
• Anticipated annual recurring revenue from EDCs entering 2026: More than $3 million.

These modular EDCs are designed to be SOC 2 Type II compliant with N+1 architecture and dual backup generators.

Strategic Equity Interest

Duos Technologies Group, Inc. (DUOT) holds a non-controlling, non-voting equity stake in the entity related to its energy services partner, which contributes high-margin revenue directly to the top line.

The financial contribution from this specific resource in Q3 2025 was notable:

Equity Interest Detail	Value/Rate for Q3 2025
Equity Interest Percentage	5% non-voting equity interest
Revenue Recognized (3 Months Ended Sept 30, 2025)	$904,125
Associated Margin Contribution Rate	100% margin

This revenue stream, tied to the Asset Management Agreement (AMA) with New APR Energy, carried no associated costs for Duos Technologies Group, Inc. (DUOT).

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Duos Technologies Group, Inc. (DUOT) solutions right now, late in 2025. It's a mix of high-speed data capture and high-margin service contracts. Here's the quick math on what they are delivering.

Automated, High-Speed Railcar Inspection for Safety and Efficiency

The rip® Railcar Inspection Portal replaces manual checks with remote, automated inspection at designated points, even when trains are moving at high speeds. This system uses high-definition imaging to capture a full, 360-degree view of every railcar. The data volume is substantial; for instance, in Q1 2025, the system performed over 2.3 million comprehensive railcar scans across 13 portals. Each scan generates significant detail, utilizing megapixel line scan cameras to provide an average image resolution of 224 megapixels per railcar. The AI processing farm is built to handle this load, with some scenarios generating over 60 gigabytes per second of image data that needs immediate processing to keep system velocity up.

The value here is clear:

• Increase safety for employees and the public.
• Improve bottom line by reducing dwell time.
• Automate mechanical and security checks remotely.
• Capture approximately 5 gigabytes of data per freight car.

Reduced Railcar Inspection Times Versus Manual Processes

The automation directly attacks inspection cycle time. Where manual processes for longer trains can take hours, the AI-enabled portals can accurately assess trains moving at full speed. The system's optional Artificial Intelligence detection elevates this by automatically targeting and identifying a wide variety of specific railcar defects, providing inspectors with real-time alerts and notifications in advance. This immediate flagging of anomalies streamlines the process, meaning mechanical inspectors spend less time searching and more time fixing. If onboarding takes 14+ days, churn risk rises, but the speed of automated detection mitigates this operational drag.

Cost-Effective, Decentralized Edge Data Centers in Rural/Underserved Markets

Duos Edge AI is deploying small, modular Edge Data Centers (EDCs) to bring localized, Tier 3-level data center capacity to areas lacking robust digital infrastructure. This decentralized approach is cost-effective; the fully installed cost for these units is estimated to be around $1.2 million to $1.4 million. The company is executing against an aggressive deployment schedule, targeting 15 EDCs by the close of fiscal year 2025. As of Q2 2025, they had 10 units in production or planning, having launched the first production standalone EDC with revenues starting in June 2025. Furthermore, the partnership with FiberLight helps reduce deployment costs by 30%.

Here is the deployment roadmap:

Metric	Target/Actual (as of late 2025)	Year-End 2026 Projection
EDCs Deployed/Planned (2025 Target)	15 units	N/A
Additional EDCs Planned	N/A	45-50 sites
Deployment Cost (Fully Installed)	Approx. $1.2M - $1.4M	N/A

High-Margin Energy Asset Management and Operational Support Services

The Asset Management Agreement (AMA) with New APR Energy is a major driver of financial performance, shifting the revenue mix heavily toward services. For Q2 2025, total revenue hit $5.74 million, with approximately $4.76 million coming directly from AMA-related services. This focus on high-value services is reflected in the gross margin, which saw an 808% enhancement to $1.52 million in Q2 2025. A unique aspect of this high-margin stream is the 5% non-voting equity interest in New APR's parent company, which contributed $904,125 in Q2 2025 revenue that carried a 100% margin. The company is projecting full-year 2025 consolidated revenue to be between $28 million and $30 million.

The financial impact of the AMA is stark:

• Q2 2025 Services and Consulting Revenue: Approx. $5.7 million.
• Q2 2025 Gross Margin: $1.52 million.
• FY 2025 Revenue Guidance: $28M - $30M.

Finance: draft 13-week cash view by Friday.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Customer Relationships

You're looking at how Duos Technologies Group, Inc. secures and maintains its customer base, which is heavily leaning on long-term, high-value service contracts as of late 2025. The shift toward recurring revenue is clear in the numbers.

Long-term, multi-year service and software agreements for recurring revenue.

The foundation of Duos Technologies Group, Inc.'s customer relationship strategy rests on securing multi-year commitments that build a substantial revenue backlog. The company's backlog, which consists of these service and software agreements extending beyond the current year, was reported at approximately $45.4 million at the end of the first quarter of 2025. By the end of the second quarter of 2025, this figure stood at $40.7 million, with $18 million expected to be recognized in calendar 2025. The recurring nature of this revenue is evident in the first nine months of 2025, where total revenue reached $17.6 million, with approximately $17.2 million attributed to recurring services and consulting revenue. The overall expectation for total revenue for the full fiscal year ending December 31, 2025, is reiterated to be between $28 million and $30 million.

Here's a quick look at the revenue mix through the first three quarters of 2025:

Period End Date	Total Revenue	Recurring Services & Consulting Revenue (Approximate)	Technology Systems Revenue (Approximate)
March 31, 2025 (Q1)	$4.95 million	$4.89 million	$65,000
June 30, 2025 (6 Months)	$10.69 million	$10.59 million	$105,000
September 30, 2025 (9 Months)	$17.6 million	$17.2 million	$370,000

Dedicated operational support for major energy and rail clients.

The relationship with the major energy client, New APR Energy, under the Asset Management Agreement (AMA) signed on December 31, 2024, exemplifies dedicated, high-value support. This AMA is expected to be very accretive to shareholder value and is associated with an estimated $42 million contract for Duos Technologies Group, Inc. to operationally manage gas turbines. For the third quarter of 2025 alone, services related to the AMA contributed $5.69 million to the Services and Consulting revenue. In the first quarter of 2025, the AMA generated $3.9 million in Services and Consulting revenue. This single agreement is a cornerstone of the current revenue surge.

For rail clients, the company's operational footprint includes 13 portals as of the end of the first quarter of 2025, scanning over 2.3 million comprehensive railcar scans in that quarter alone.

High-touch, consultative sales for large-scale system deployments.

While specific sales cycle data isn't public, the nature of the large contracts implies a consultative approach. The company's consulting services revenue stream includes Professional Services (consulting and auditing), Software licensing, Customer service training, and Maintenance support. The technology systems portion, which includes the Railcar Inspection Portal (RIP), historically required payment of 30% or more due prior to delivery for system sales. The current focus, however, is shifting away from one-time system sales toward service-based revenue, which is a direct result of consultative engagement around operational needs.

Subscription model for RIP systems to lower customer entry barriers.

Duos Technologies Group, Inc. is actively transitioning the RIP business to a modular and subscription-based approach, termed "RIP-as-a-Service." This model is designed to improve scalability and lower the initial financial hurdle for customers. The first subscription services agreement, implemented with a passenger transit operator, was initially valued at $300,000 and is renewable annually. This initial deal provided access to the Railcar Inspection Portal (RIP) and optional Artificial Intelligence (AI) detection models across up to three existing Class 1 portals.

The company plans to install 65 Edge Data Centers by the end of 2026, aiming for substantial recurring revenue from these installations.

Finance: draft 13-week cash view by Friday.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Channels

Direct sales and deployment teams handle the execution for Duos Technologies Group, Inc.'s core segments.

For rail projects, the direct teams managed operations across 13 portals in the first quarter of 2025, performing over 2.3 million comprehensive railcar scans. These scans represented approximately 24% of the total freight car population in North America. Deployment activity for two high-speed Railcar Inspection Portals experienced delays outside of the Company's control.

The energy projects channel is heavily supported by Duos Energy Corporation's execution against the Asset Management Agreement (AMA) with New APR Energy. This AMA drove approximately $4.76 million in recurring services and consulting revenue in the second quarter of 2025, and contributed $3.9 million in Q1 2025. Furthermore, project work included the installation of six gas turbine generators in Mexico, totaling 150 megawatts.

Wholly-owned subsidiaries are key delivery mechanisms for the current growth strategy.

Duos Edge AI, Inc. focuses on Edge Data Centers (EDCs), with a goal to have 15 units deployed by the end of fiscal year 2025. The company had orders for a total of 10 units as of the end of Q1 2025, and commercialized its first production standalone EDC with revenues starting April 1, 2025.

The expected revenue contribution from the EDC channel is detailed below:

Metric	Q1 2025 Estimate (Per Unit)	Q2 2025 Estimate (Per Unit)
Annual Revenue Expectation	$300,000 to $400,000 (over 12-18 months)	$350,000 to $500,000 (Annually)
Projected Gross Profit Margin	Not specified	Mid-70s percent
Projected Free Cash Flow (After Year 1)	Not specified	Around $300,000 per unit (Per year)

Duos Energy Corporation channels its services primarily through the AMA, which contributed approximately $6,600,000 of the $6.9 million total revenue in Q3 2025, categorized as recurring services and consulting and hosting revenue.

Direct procurement and infrastructure services via Duos Technology Solutions are reflected in the technology systems revenue component.

For the first nine months of 2025, technology systems revenue was approximately $370,000. In Q3 2025 alone, technology systems revenue was approximately $263,000. The total contract backlog as of the end of Q2 2025 was approximately $40.7 million in revenue, with approximately $18 million expected to be recognized in calendar 2025.

The Investor Relations website serves as the primary channel for communicating Duos Technologies Group, Inc.'s financial trajectory and strategic capital actions.

The Company reiterated its total revenue expectation for the fiscal year ending December 31, 2025, to range between $28 million and $30 million. This guidance represents an increase of 285% to 312% from 2024.

Strategic communications highlight capital deployment to support this channel growth:

• Duos Technologies Group, Inc. raised over $50 million in capital during 2025.
• The capital raise included $40 million in a public offering and $12.5 million through an at-the-market (ATM) facility earlier in 2025.
• The company is targeting the first quarter of breakeven or better on an adjusted EBITDA basis in Q4 2025.
• The Investor Relations channel communicated a partnership signed with FiberLight to enhance telecom capabilities.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Duos Technologies Group, Inc. as of late 2025, which has clearly pivoted to focus heavily on energy services and Edge Data Centers (EDC), though the rail business remains a foundation.

Class 1 North American Railroads and major passenger rail operators.

This segment utilizes the Railcar Inspection Portal (RIP) technology for safety and compliance data collection. Duos Technologies Group, Inc. supports four Class 1s and Amtrak. As of Q1 2025, the company operated 13 portals across the U.S., Canada, and Mexico. During Q1 2025, over 2.3 million comprehensive railcar scans were performed across these portals. This activity represented approximately 24% of the total freight car population in North America. Revenue from technology systems in Q2 2025 was approximately $40,000, showing this segment is currently a smaller revenue contributor compared to the energy and EDC segments.

Large data center developers and hyperscalers needing power solutions.

This customer group is primarily served through Duos Energy Corporation executing the Asset Management Agreement (AMA) with New APR Energy LLC. This work involves deploying and managing mobile gas turbines for behind-the-meter power. As of Q2 2025, Duos Energy completed the installation of six gas turbine generators (150MW) in Mexico and four additional generators at a Hyperscaler site in Tennessee under the AMA. Furthermore, the company deployed an additional 300 megawatts of gas turbines to support a large US based AI data center operator. Revenue from services related to the AMA was $4.76 million in Q2 2025 and $5.15 million in Q3 2025. The AMA was expected to generate approximately $42 million over the next two years as of March 31, 2025.

Freight car owners and lessors seeking compliance and safety solutions.

This group is targeted for subscription services based on the data gathered from the railcar scanning portals. Following a five-year agreement with CN (CNI) signed in late 2024, Duos Technologies Group, Inc. intends to offer shippers and car owners transiting the CN network subscription access to the Machine Vision/AI Wayside Detection Safety Data.

Regional enterprises, government, and healthcare facilities for Edge Data Centers.

Duos Edge AI, Inc. targets this market with its modular Edge Data Center (EDC) solutions. The company aims to deploy 15 EDCs by the end of 2025. As of Q2 2025, orders were placed for a total of 10 units. The first production standalone EDC began generating revenues in June 2025. By the end of Q3 2025, the company announced the deployment of its sixth Edge Data Center, with an additional nine scheduled for Q4 2025. The company expects to exit 2025 with an estimated $3.5 million in high margin annual recurring revenue from this business. A partnership with FiberLight was signed to accelerate EDC deployment and expand high-speed connectivity.

The composition of Duos Technologies Group, Inc.'s revenue streams as of Q3 2025 highlights the customer segment focus:

Revenue Component	Q3 2025 Amount	Percentage of Total Q3 2025 Revenue
Recurring Services and Consulting/Hosting Revenue	Approximately $6,600,000	Approximately 95.9%
Technology Systems Revenue	Approximately $263,000	Approximately 3.8%
Total Revenue (Q3 2025)	$6.88 million	100%

The recurring services and consulting revenue is heavily influenced by the AMA with New APR Energy.

The company's contracted backlog as of Q3 2025 was nearly $26 million in revenue, with about $9.5 million or more projected for recognition in Q4 2025.

• Total Revenue for the first nine months of 2025: $17.6 million.
• Total Revenue for the first nine months of 2025: Recurring services and consulting revenue was approximately $17.2 million.
• Total Revenue for the first nine months of 2025: Technology systems revenue was approximately $370,000.
• Full-year 2025 Revenue Guidance: $28 million to $30 million.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Duos Technologies Group, Inc.'s business as they push hard on the Edge Data Center and AMA service growth. Honestly, the cost structure is heavily influenced by the massive revenue ramp-up from the Asset Management Agreement (AMA) with New APR Energy, which drives up both cost of revenues and operating expenses, particularly non-cash items.

Cost of Revenues for Services and Consulting

The cost associated with generating the high-margin service and consulting revenue, especially from the AMA, saw a significant jump. This reflects the direct costs of managing the deployment and operation of the mobile gas turbines and related inventory for APR Energy.

• Cost of revenues for services and consulting for the nine months ended 2025 increased by 143%.
• This cost reached $12.22 million for the nine months ended 2025, up from $5.02 million in the same prior period.
• The cost of revenues specifically tied to technology systems has been decreasing compared to the equivalent periods in 2024.

Operating Expenses

Operating expenses are being managed, but they are rising due to strategic investments and non-cash charges. The increase in expenses is largely attributed to non-cash stock-based compensation granted to the executive team on January 1, 2025.

Here's the quick math on operating expenses, noting the closest available data point to your requested 34% increase, which appears tied to the Q3 reporting period:

Metric	Q3 2025 Amount	Year-over-Year Change	Prior Year Q3 Amount
Operating Expenses	$11.7 million	34% increase	$8.7 million
Operating Expenses (6 Months 2025)	$8.06 million	38% increase	$5.86 million
Operating Expenses (Q3 2025)	$3.63 million	28% increase	$2.8 million

What this estimate hides is the specific breakdown of the non-cash stock-based compensation component for the full nine months, though it is confirmed as a primary driver for the expense increase in Q3.

Capital Expenditure for Edge Data Center Unit Manufacturing and Deployment

Capital expenditure is focused on scaling the Duos Edge AI segment. While a total CapEx number for the nine months isn't explicitly stated, the funding secured to support manufacturing and deployment is a clear indicator of this cost commitment.

• Duos Edge AI secured a total of $2.2 million in secured promissory notes to fund the construction, deployment, and initial operations of the first three Edge Data Centers (EDCs).
• The debt for this funding matures at the end of 2025 and carries an interest charge of 10% per annum.
• The company is on pace to have 15 Edge Data Centers under contract by the end of 2025.

R&D and Engineering Costs for AI Model Development and System Integration

Research and Development (R&D) costs show variability quarter-over-quarter, suggesting a shift in focus from initial development to operational support for existing systems like the AMA.

• R&D expenses rose 11% in Q1 2025, reflecting new engineering hires supporting the AMA.
• R&D expenses fell by 21% in Q2 2025 due to completed development and testing of prospective technologies.
• R&D expenses fell by 71% in Q3 2025 due to scaled-back testing of prospective technologies.

Finance: draft 13-week cash view by Friday.

Duos Technologies Group, Inc. (DUOT) - Canvas Business Model: Revenue Streams

You're looking at how Duos Technologies Group, Inc. is bringing in money as of late 2025, which is heavily influenced by their energy services agreement.

The revenue streams for Duos Technologies Group, Inc. are clearly segmented, showing a strong pivot toward recurring service contracts over one-time system sales, which is a key part of their current financial structure.

Revenue Stream Component	9 Months Ended 2025 (Approximate)	Full Year 2025 Guidance
Recurring Services and Consulting Revenue	$17.2 million	Part of $28 million to $30 million total
Technology Systems Revenue (RIP Sales/Deployment)	$370,000	Part of $28 million to $30 million total
Total Revenue (9 Months Ended 2025)	$17.57 million	N/A
Total Revenue Guidance (FY 2025)	N/A	$28 million to $30 million

The recurring services and consulting revenue is the dominant component, largely driven by the Asset Management Agreement (AMA) with New APR Energy.

Here's a breakdown of the key revenue components for the first nine months of 2025:

• Recurring services and consulting revenue: approximately $17.2 million for 9 months 2025.
• Technology systems revenue from Railcar Inspection Portal (RIP) sales and deployment: approximately $370,000 for 9 months 2025.
• High-margin revenue from the 5% equity interest in New APR parent: Over $904,000 recognized in Q3 2025 alone, booked at a 100% margin.
• Edge Data Center co-location services and power consulting fees: This is a growing area, supported by the deployment of Edge Data Centers (EDCs).
• Full-year 2025 revenue guidance is set between $28 million and $30 million.

To be fair, that $17.2 million in recurring revenue for the nine months includes about $5.15 million specifically from Duos Energy executing the AMA with APR Energy in Q3 2025. Also, the Q3 2025 recurring services and consulting and hosting revenue alone was about $6.6 million.

The technology systems revenue saw a decrease, with only about $263,000 recognized in Q3 2025, primarily attributed to deployment delays with the Railcar Inspection Portals.

Finance: draft 13-week cash view by Friday.