Duos Technologies Group Inc. 2026年季度报告

PART I – FINANCIAL INFORMATIONItem 1.Financial Statements1 DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSMarch 31, 2026 and 2025 NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Duos Technologies Group, Inc., through its operating subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc., Duos EnergyCorporation, and Duos Technology Solutions, Inc. (collectively the “Company”) is a technology Company that designs, develops,deploys, and operates intelligent technology solutions that leverage machine vision and artificial intelligence (“AI”), as well as digital The Company’s solutions include applications for real-time data acquisition and analysis, including the inspection and monitoring offast-moving vehicles, as well as the deployment of distributed computing infrastructure and related services. The Company’s operations are organized around the development and delivery of digital infrastructure, technology-enabled services,and AI-driven solutions that support data processing, automation, and operational efficiency across commercial, industrial, and public The Company’s principal business activities include: the development and deployment of edge data center infrastructure and related hosting services;the design and delivery of AI-enabled technologies and analytics platforms;the provision of technology systems and integrated solutions for infrastructure and industrial applications;the delivery of consulting and energy-related services, including power infrastructure planning and asset managementservices; and In 2024, the Company’s management team determined that it would be in the best interests of the Company and its shareholders toleverage the skills and expertise that have been built up since 2021 to expand into other markets. The Company elected to develop newofferings based on its existing technology and formed a new subsidiary in July 2024 called Duos Edge AI (“Edge”). The objective ofthis new subsidiary is to market a special part of the Rail Inspection Portal (“RIP”) for the provision of high-speed and functionprocessing of data and applications with a focus on reducing latency in response times to end-users. The Company has many years ofexperience via its expert staff in bringing these types of capabilities to remote locations, also known as “the edge”. Edge processingcan be an extremely efficient and lower cost alternative to traditional data centers. The strategy for Edge is to serve rural communities, Also in late 2024, the Company formed a third subsidiary, Duos Energy Corporation (“Duos Energy”) with the express purpose ofproviding consulting services and solutions for the rapidly growing demand for electrical power outside of traditional utilities. As anoutgrowth of its new Edge Data Center subsidiary, and the current expert staff on-hand, the Company has engaged with multiple thirdparties to act in a consulting and ultimately asset management capacity whereby the Company’s staff is engaged directly to supply thistype of power solutions for multiple uses including for large data centers supporting AI “hyperscalers”. In conjunction with this, in late2024, the Company engaged with Fortress Investment Group (“FIG”) to assist in FIG’s purchase of approximately 850 Mega Watts ofelectrical generation capacity (consisting of 30 mobile gas turbine generators) and associated equipment to support their installationand operation (“balance-of-plant”). In late November 2024, Sawgrass Buyer LLC, an entity formed and owned by FIG, executed anasset purchase agreement with Atlas Corporation, APR Energy Holdings Limited and a number of its wholly-owned affiliates(collectively, “APR”). Chuck Ferry, our then CEO, was formerly the CEO of APR from 2018 to 2020. The transaction closed on DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIESCONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSMarch 31, 2026 and 2025 Under the AMA, Duos Energy manages the deployment and operations for a fleet of mobile gas turbines and “balance-of-plant”inventory, providing management, sales and operations functions to New APR in connection with the assets. In exchange for servicesto be performed under the AMA, the Company received an initial cash payment from New APR and common units in Sawgrass Where the Company has an interest in a Variable Interest Entity (“VIE”), it will consolidate any VIE in which the Company has acontrolling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the followingcharacteristics: (1) the power to direct the activities of the VIE that most significantly impact its economic performance; and (2) theobligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE thatcould be significant to the VIE. If both of the characteristics are met, the Company is considered t