Duos Technologies amends equity terms, adjusts Series E stock

JACKSONVILLE, FL—Duos Technologies Group, Inc. (NASDAQ:DUOT), a provider of prepackaged software services, has announced unregistered sales of equity securities and material modifications to the rights of security holders in a recent SEC filing. On Monday, the company reported that it issued 344,644 shares of common stock upon the exercise of warrants by the 21 April Fund LP and 21 April Fund Ltd. The exercise price of the warrants was reduced to $2.61 per share, and any "blocker" provisions were removed.

The issuance brought in $899,520.84 for Duos Technologies. These shares were issued in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act and Regulation D's Rule 506 as transactions not involving a public offering.

In a related event, Duos Technologies has adjusted the conversion price of its Series E Convertible Preferred Stock from $3.00 to $2.61, following consent from the majority of the Series E Preferred Stock holders. This consent was necessary due to a restriction in the Securities Purchase Agreements that prevented the company from issuing common stock at a price lower than $3.00 per share until December 31, 2024.

Subsequently, on the following day, Duos Technologies filed Articles of Amendment with the Florida Secretary of State to reflect the change in conversion price.

In other recent news, Duos Technologies Group (NASDAQ:DUOT) reported a mixed financial performance for the second quarter of 2024. The company's total revenue declined by 15% to $1.51 million compared to the same period last year, while its recurring services and consulting revenue saw a substantial increase of 38%.

Despite the overall dip in revenue, Duos Technologies is planning expansion in several areas. It is growing its Railcar Inspection Portal and Edge Data Center businesses and has made an entry into the power provision market with the launch of Duos Energy Corporation.

These developments highlight the company's strategic positioning to capitalize on the growing demand for rail inspection and data center services. The company is diversifying its offerings and exploring new revenue streams.

Duos Technologies also reported a backlog of contracts over $19.6 million, providing a solid foundation for future growth. As the company continues to expand its operations and services, it expects to see an increase in recurring revenue, a key driver for its financial performance in the coming quarters.

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