Duos Technologies Group Inc (DUOT)

[Adrian1]

New PR this morning discussing high renewal rates on support and AI contracts.

Summary:
Company disclosed that it had a 100% renewal rate on its recurring revenue contracts and it expects to receive $2M in cash from these contracts during the first quarter.

Key Points:
• $2M in expected cash receipts from this area in Q1
• Standardization of its software and AI portfolio (see last week’s announcement)
• Active discussions with railcar owners for additional licensing fees (recurring revenue)

Opinion:

This is a very key metric for the Company as it expands its business. Between 2016 and 2017 the Company lost half its recurring revenues and only recorded $1.1M in 2017. Since that time and particularly since 2020, the Company has made a major focus on its service and support quality and this is now starting to pay dividends. Be careful not to associate the $2M figure with revenues since the revenues get recorded each month. However, this is an important source of cash which should help liquidity.