Duos Technologies Expands At-The-Market Offering by $8.85M

Duos Technologies Group, Inc. (NASDAQ:DUOT), a prepackaged software services provider with a market capitalization of $59.92 million, has amended its sales agreement with Ascendiant Capital Markets, LLC, increasing its at-the-market stock offering by $8.85 million. This move, effective Monday, April 14, 2025, follows the original agreement from May 17, 2024, which allowed the Jacksonville-based company to sell $7.5 million in common stock. According to InvestingPro data, the company’s financial health score is currently rated as weak, with short-term obligations exceeding liquid assets.

The additional shares will be offered through an at-the-market offering, a method that enables the sale of stocks directly on the market at current prices. Duos Technologies plans to sell its common stock under the ticker DUOT on The Nasdaq Stock Market LLC. The stock, currently trading at $5.15, has shown significant momentum with a 29% gain over the past six months, despite operating with moderate debt levels. InvestingPro analysis reveals 12 additional key insights about DUOT’s performance and prospects, available to subscribers.

The decision to increase the offering came with the filing of a prospectus supplement with the SEC, pursuant to the company’s effective shelf registration statement on Form S-3, initially filed on June 12, 2023, amended on June 20, 2023, and declared effective on June 21, 2023.

Under the terms of the sales agreement, Ascendiant Capital Markets will endeavor to sell the shares based on instructions from Duos Technologies, consistent with market practices and regulatory requirements. The company has set parameters for the sale, including the number of shares, timing, daily sale limits, and a minimum sale price.

The sales agreement allows either Duos Technologies or Ascendiant Capital Markets to suspend or terminate the offering at any time, subject to certain conditions. The agreement also specifies that the agent may sell the shares by any method deemed to be an "at the market offering," as defined by securities law.

The amendment to the sales agreement and the associated legal opinion from Shutts & Bowen LLP regarding the validity of the shares are attached to the SEC filing as exhibits.

This expansion of the at-the-market offering provides Duos Technologies with a mechanism to raise additional capital as needed, potentially supporting its business operations and growth strategies. While analysts anticipate sales growth in the current year, the company’s EBITDA stands at -$9.11 million for the last twelve months. Notably, analyst price targets range from $7.50 to $14.00, suggesting potential upside from current levels. For comprehensive analysis and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro. This report is based on a press release statement.

In other recent news, Duos Technologies Group reported its financial results for the fourth quarter of 2024, showing a net loss but indicating a positive outlook for the future. The company recorded a total revenue of $1.46 million for Q4 2024, representing a 4% decline from the previous year. Despite this, Duos Technologies anticipates breaking even in the latter half of 2025, with expectations of a revenue increase fueled by new business lines and strategic partnerships. The full-year revenue for 2024 was $7.28 million, down 3% from 2023, while the net loss for the year was $10.76 million, slightly improved from the previous year’s $11.24 million loss.

Additionally, Duos Technologies is planning to deploy 15 edge data centers by the end of 2025, which is expected to contribute significantly to revenue growth. In corporate governance news, Kenneth Ehrman has resigned as Chairman and director of Duos Technologies, a role he held since November 2020. The company has not yet announced a successor or detailed any transition plans following his departure. CEO Chuck Ferry acknowledged Ehrman’s contributions and expressed gratitude for his service. These developments come as Duos Technologies continues to focus on its core business operations and strategic initiatives.

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