DUOS TECHNOLOGIES GROUP, INC. Q1 FY2025 earnings call

• Power business: Contracted 570 MW with APR Energy, expecting 730 MW soon, with assets to be deployed in US and Mexico. • Edge Data Center business: 9 Edge Data Centers committed, expecting 15 by end of year, with partnership with Accu-Tech. • Segments: Three distinct segments - Duos Technologies (rail), Duos Edge AI (Edge Data Center), Duos Energy (Power) with distinct roles. • Financial progress: Revenue growth, gross margin improvement, balance sheet strength with $6.48M cash and over $5.1M shareholders' equity.

Duos has three segments: Duos Technologies (rail industry), Duos Edge AI (Edge Data Center), and Duos Energy (Power). Duos Energy: Through the Asset Management Agreement with APR Energy, contracted 570 megawatts, with an expected increase to 730 megawatts, and assets to be deployed in the US and Mexico. Duos Edge AI: Has customer commitments for 9 Edge Data Centers, expecting to complete installations of 15 by year-end. Financials: Total revenues for Q1 2025 were $4.95 million, an increase of 363% compared to Q1 2024. Cost of revenues was $3.64 million, an increase of 273% y-o-y. Gross margin was $1.31 million, an increase of 1288% y-o-y. Net loss for Q1 2025 was $2.08 million, a 24% decrease compared to Q1 2024.

• Consolidated revenue expected $28M-$30M in 2025. • Q1 was upper end of $4M-$5M, expect similar performance in Q2. • Expect to breakeven and have positive adjusted EBITDA in Q3/Q4, with non-cash stock compensation as a major adjustment.

• Tariffs could affect raw materials for Edge Data Centers. • Potential tariffs on APR Energy assets if acquired.

Q: On the Power business, is the 32% gross margin range good for the year?

A: Yes, confident in the forecast for the year on the Power business gross margin.

Q: Any change in sales cycle due to tariffs in Edge Data Center or Power business?

A: No impact noticed, both lines of business are in good shape with no slowdown.

Q: On Edge Data Center guidance, how does the ramp from 15 by end of year play out?

A: Combination of school districts and hyperscaler customers, with discussions ongoing with hyperscalers regarding distributed Edge Data Centers.

Q: About power scarcity for large data centers, any updates on Tampa project?

A: Committed to developing with APR Energy, expect to close property in next 2 months, APR to decide on progress in next month.

Q: Allocating power portfolio for new projects?

A: High utilization of power turbines planned, assisting APR in acquiring additional assets to grow the business and benefit from 5% ownership stake.