Quick Summary:
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash$506,114 $2,441,842 Accounts receivable, net 128,795 1,462,463 Contract assets 1,139,395 641,947 Inventory 1,060,373 1,526,165 Prepaid expenses and other current assets 436,066 184,478 Note receivable, net 157,500 - Total Current Assets 3,428,243 6,256,895 Property and equipment, net 1,736,407 726,507 Operating lease right of use asset 4,204,593 4,373,155 Security deposit 500,000 550,000 OTHER ASSETS: Note receivable, net - 153,750 Intangible asset, net 10,688,359 - Patents and trademarks, net 128,371 129,140 Software development costs, net 524,225 652,838 Total Other Assets 11,340,955 935,728 TOTAL ASSETS$21,210,198 $12,842,285 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable$849,497 $595,634 Notes payable - financing agreements 241,452 41,976 Accrued expenses 252,024 164,113 Operating lease obligations-current portion 788,801 779,087 Contract liabilities, current 3,676,567 1,666,243 Total Current Liabilities 5,808,341 3,247,053 Contract liabilities, less current portion 8,495,876 - Operating lease obligations, less current portion 4,052,527 4,228,718 Total Liabilities 18,356,744 7,475,771 Commitments and Contingencies (Note 5) STOCKHOLDERS' EQUITY: Preferred stock: $0.001 par value, 10,000,000 authorized, 9,441,000 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, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, respectively, convertible into common stock at $5.50 per share Series D convertible preferred stock, $1,000 stated value per share, 1 1 4,000 shares designated; 1,519 and 1,299 issued and outstanding at June 30, 2024 and December 31, 2023, respectively, convertible into common stock at $3 per share Series E convertible preferred stock, $1,000 stated value per share, 30,000 shares designated; 13,625 and 11,500 issued and outstanding at June 30, 2024 and December 31, 2023, respectively, 14 12 convertible into common stock at $3 per share Series F convertible preferred stock, $1,000 stated value per share, 5,000 shares designated; 0 and 0 issued and outstanding at June 30, 2024 and December 31, 2023, respectively, - - convertible into common stock at $6.20 per share Common stock: $0.001 par value; 500,000,000 shares authorized, 7,623,598 and 7,306,663 shares issued, 7,622,274 and 7,305,339 7,623 7,306 shares outstanding at June 30, 2024 and December 31, 2023, respectively Additional paid-in-capital 72,563,300 69,120,199 Accumulated deficit (69,560,032) (63,603,552)Sub-total 3,010,906 5,523,966 Less: Treasury stock (1,324 shares of common stock at June 30, 2024 and December 31, 2023) (157,452) (157,452)Total Stockholders' Equity 2,853,454 5,366,514 Total Liabilities and Stockholders' Equity$21,210,198 $12,842,285 DUOS TECHNOLOGIES GROUP, INC.
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.
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, 2024 2023 2024 2023 REVENUES: Technology systems$264,999 $870,494 $534,854 $2,698,258 Services and consulting 1,245,497 899,565 2,046,322 1,716,089 Total Revenues 1,510,496 1,770,059 2,581,176 4,414,347 COST OF REVENUES: Technology systems 780,912 1,072,106 1,364,349 2,839,315 Services and consulting 944,148 456,616 1,336,759 796,523 Total Cost of Revenues 1,725,060 1,528,722 2,701,108 3,635,838 GROSS MARGIN (214,564) 241,337 (119,932) 778,509 OPERATING EXPENSES: Sales and marketing 712,456 301,077 1,265,942 608,654 Research and development 390,000 537,801 772,142 942,686 General and administration 1,899,396 2,550,709 3,819,446 4,522,217 Total Operating Expenses 3,001,852 3,389,587 5,857,530 6,073,557 LOSS FROM OPERATIONS (3,216,416) (3,148,250) (5,977,462) (5,295,048) OTHER INCOME (EXPENSES): Interest expense (1,150) (3,230) (1,595) (4,410)Other income, net 13,395 162,080 22,577 166,375 Total Other Income (Expenses) 12,245 158,850 20,982 161,965 NET LOSS$(3,204,171) $(2,989,400) $(5,956,480) $(5,133,083) Basic and Diluted Net Loss Per Share$(0.43) $(0.42) $(0.81) $(0.72) Weighted Average Shares-Basic and Diluted 7,450,676 7,169,340 7,378,813 7,163,142 DUOS TECHNOLOGIES GROUP, INC.
