DUOTHIGH SIGNALOPERATIONAL10-K

DUOT has executed a fundamental strategic pivot from machine vision/railcar inspection technology to AI-driven edge computing and data center infrastructure.

This represents a complete business transformation as the company abandons its legacy focus on automated inspection and rail analytics to enter the competitive edge computing market. The shift suggests management believes greater growth opportunities exist in distributed digital infrastructure, but introduces execution risk as the company builds new capabilities in an entirely different sector.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

The balance sheet shows a dramatic improvement with total assets growing substantially to $63.4M while total liabilities declined meaningfully to $14.9M, suggesting either successful fundraising or asset monetization. Operating losses improved modestly from -$11.0M to -$9.8M, while R&D expenses were notably reduced, potentially reflecting the strategic shift away from legacy technology development. The overall financial picture indicates a company in transition with improved capital positioning but continued operational losses.

FINANCIAL STATEMENT CHANGES
Total Assets
Balance Sheet
+81.4%
$35.0M→$63.4M

Asset base grew 81.4% — expansion through organic growth, acquisitions, or capital deployment.

Accounts Receivable
Balance Sheet
+81%
$403K→$730K

Receivables surged 81% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Liabilities
Balance Sheet
-54.6%
$32.7M→$14.9M

Liabilities reduced 54.6% — deleveraging improves balance sheet strength and financial flexibility.

Inventory
Balance Sheet
-49.3%
$605K→$307K

Inventory drawn down 49.3% — strong sell-through or deliberate destocking; watch for supply constraints.

R&D Expense
P&L
-44.7%
$1.5M→$847K

R&D spending cut 44.7% — could signal cost discipline or concerning reduction in innovation investment.

Current Liabilities
Balance Sheet
-31.1%
$16.1M→$11.1M

Current liabilities reduced — improved short-term financial position and working capital health.

Interest Expense
P&L
-22.1%
$9K→$7K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Total Debt
Balance Sheet
-20.7%
$53K→$42K

Debt reduced 20.7% — deleveraging strengthens balance sheet and reduces financial risk.

Operating Income
P&L
+11.1%
-$11.0M→-$9.8M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
Duos Edge AI includes our Technology Solutions business unit, which delivers manufacturer-agnostic infrastructure sourcing, integration, and value-added supply chain services supporting data center, AI, and enterprise deployments.
The Company continues to maintain its portfolio of intelligent technology and analytics solutions with Duos Technologies, Inc., while expanding into digital infrastructure and distributed compute markets.
Overview Headquartered in Jacksonville, Florida, the Company operates through several wholly owned subsidiaries, including Duos Edge AI, Inc., Duos Technologies, Inc., and Duos Energy Corporation, The Company delivers AI-driven technologies, edge computing infrastructure, and energy consulting services to support data-intensive and mission-critical operations.
Duos is strategically focused on scaling its edge data center platform through Duos Edge AI.
Together, these platforms position the Company to address growing demand for distributed digital infrastructure, while continuing to support legacy machine vision applications and provide energy-related services.
Evolution of the Company s Strategy Over the past several years, the Company has evolved from a technology developer and provider, primarily focused on automated inspection and analytics solutions, toward a broader digital infrastructure platform centered on edge computing and distributed data center deployments.
While our legacy solutions demonstrated the value of localized computing power, real-time data processing, and AI-enabled analytics in mission-critical environments, market dynamics and customer demand increasingly favor infrastructure-centric solutions that bring compute and connectivity closer to the point of use.
This evolution has guided our strategic expansion into modular Edge Data Centers and infrastructure solutions and services.
Continued Support of Existing Solutions The Company continues to support and operate its existing technology platforms and customer deployments.
We believe our prior experience in deploying edge compute systems, operating in regulated environments, and managing complex installations provides a strong foundation for our digital infrastructure initiatives.
REMOVED
The Company has a strong and growing portfolio of intellectual property including significant patent awards in the areas of railcar scanning technology for the identification of defects.
Overview The Company, operating under its brand name duos tech , develops and deploys technology systems with focus on inspecting and evaluating moving vehicles.
Its technology focus is within the Vision Technology market sector and, more specifically, the Machine Vision subsector.
Machine Vision companies provide imaging-based automatic inspection and analysis for process control for industry with potential expansion into other markets.
Duos has developed key technologies over the past several years in software, industry specific hardware and artificial intelligence and has demonstrated industrial strength usability of its systems supporting rail, logistics and intermodal businesses that streamline operations, improve safety and reduce costs.
Our team includes engineering subject matter expertise in hardware, software, and information technology as well as industry specific applications of artificial intelligence also referred to as Expert Artificial Intelligence.
We also have specific industry experts in the rail industry on staff and as consultants.
In 2024, the Company s management team determined that it would be in the best interests of the Company and its shareholders to leverage the skills and expertise that have been built up since 2021 to expand into complimentary and naturally adjacent markets.
Duos will continue to develop industry solutions for its target markets addressing rail, trucking, aviation and other vehicle-based processes.
In addition, the Company elected to develop new offerings based on its existing technology and formed a new subsidiary in July 2024, Duos Edge AI.
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