Duos Technologies Group, Inc.

Good afternoon. Welcome to Duos Technologies' third quarter 2022 earnings conference call. Joining us for today's call are Duos CEO Chuck Ferry, Adrian Goldfarb, CFO, and Andrew Murphy, VP, FP&A. Following their remarks, we'll open up the line for your questions. Then before we conclude today's call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. Now I'd like to turn the call over to Duos' CFO, Chuck Ferry, Thank you, sir. Please go ahead.

Welcome, everyone, and thank you for joining us. Earlier today, we issued a press release announcing our financial results for the third quarter, as well as other operational highlights. A copy of the press release is available in the investor relations section of our website. I encourage all listeners to view that release, as well as our 10-Q filing with SEC to better understand some of the details that we'll be discussing during our call. Now, let's get started. In the third quarter, we delivered another double-digit improvement in revenue performance, which has us on target to meet our financial and operating goals for the year. Revenues increased more than 130% year-over-year and are also up north of 10% on a sequential quarterly basis, reflecting the substantial completion of several rail car inspection portals and portal installations in Q3. We currently have two additional RIPs that are nearing completion, with another two expected to come online early next year. Put together, we expect to have 15 RIPs installed by the end of the first half of 2023. Through this year's growth, we have continued to improve our installation procedures, infield performance, and maintenance capabilities, all of which have improved customer satisfaction, leading to renewals, increased recurring revenue, and add-on sales opportunities. Additionally, we are well underway with our plans to build, own, and operate RIPs at strategic locations within the North American Rail Network. This new offering and pricing model will dramatically increase our potential customer base while also improving margins and predictability of our revenues over the long term. As we continue to grow our solutions, we are aligning our organization's goals with the necessary experiences and resources to execute our mission. Our recent executive appointments, as well as the additions from our new industry advisory group, have provided us with the deepest bench in our company's history, filled with industry veterans capable of taking us to the next level. With our improved balance sheet, we are confident in our ability to continue navigating ongoing macroeconomic uncertainties and are managing our expenses and inventory opportunistically to support future project completions in a timely manner. Before we discuss our financial results in detail, we do have one additional update to provide. As disclosed in our 10-Q, which has just been filed, we are making a planned transition at the CFO level. Andrew Murphy, who has been our vice president of finance planning and analysis since 2020, will be taking over the role from our longtime CFO, Adrian Goldfarb, who will continue full-time in the role of strategic advisor to me with a focus on assisting the senior management team with our business expansion into the subscription business model, investor relations, and public relations. Adrian has been with Duo since 2015. And since 2012, we're the duo's predecessor, formerly known as ISA for a total of 10 years as a senior financial executive of the public company. He has done a tremendous job shepherding the financial health of our organization over the years, from its earliest public days to the strong position we now enjoy, including managing the company's uplisting to NASDAQ in early 2020. I have personally benefited from Adrian's experience and professionalism these last two years. He's been very helpful in my role as CEO, and I look forward to continuing to work with him as he joins our industry advisory group. I'm also real excited to have Andrew Murphy as our CFO. I've known Andrew since 2016 and have been able to see his financial acumen and leadership directly at my previous company, APR Energy, and over the last two years here at Duos Tech. In my observation, he's a terrific financial professional who also shows excellent leadership qualities and will be a top-notch CFO. I'd like to now hand the call over to Adrian to share a few words. Adrian.

Thanks, Chuck. As just mentioned, I've been with Duos for over 10 years, having seen us develop from a technology startup with a handful of patents to a leading AI inspection company in the rail industry with numerous class one operators amongst its customers. In that time, I've witnessed a complete overhaul in leadership, operations, and execution that has Duos in its strongest position to date. After many years, I've come to the decision that it's now time for someone else to come in and continue the next phase of our mission. Earlier this year, we began the process of building out our CFO succession plan with today's news being the outcome. As part of my role in our newly formed industry advisory group, I will continue to work closely with the finance and investor relations teams to ensure a smooth transition. As an advisor, I plan to continue supporting the company and providing guidance for my years in industry. As Chuck also noted, I'm being succeeded by Andrew Murphy, who has been with us since 2020. I've had the benefit of working closely with Andrew through the entirety of his time here, and I'm highly confident in his ability to assume the role and provide leadership as the company grows in the company coming years. I would also like to thank the many shareholders and investors that have worked with me to assist the company in getting to this point. And I look forward to continuing my work within the company through my new role. I'm confident that we will be in capable hands with Andrew as our new CFO. Since today is my last day as CFO, and consequently my last earnings conference call, and as there is no time like the present for Andrew to get started, I will now hand the call over to Andrew to walk us through the financial results for the quarter.