Duos Technologies Group Inc (DUOT)

[Adrian1]

PR: Duos has 13 operational portals.

Summary: This PR is now confirming that Duos has 13 operating portals on the North American rail network and has scanned over 3.8 million rail cars through the first half of 2023.

My opinion: During the recent call, management gave perspective on the transition from a largely CAPEX business model to the subscription model. One of the subtleties of this type of transition is maintaining a growing top line while not sacrificing the expected much greater revenue potential from subscriptions. For those on the recent call, Mr. Murphy addressed this by discussing the balance of “short term revenue growth, while not mortgaging its future”. The PR cites that the Company is currently scanning over 3.8 million railcars every six months and at the current rate I would expect them to do 7.5 million an annualized basis. I also expect this to increase as the Company rolls out additional portals and Mr. Ferry addressed this on the call by drawing attention to the “plan to grow to a network of 40 to 50 portals with multiple subscribers each, in the coming 18 to 36 months.” I would recommend everyone read the transcript to get the full context of this announcement.