Duos Technologies Group, Inc.

Good afternoon. Welcome to Doos Technologies' third quarter 2025 earnings conference call. Joining us for today's event are Doos CEO, Chuck Ferry, myself, CFO, Adrian Goldfarb, President, Doug Recker, and Senior VP of Accounting, Leah Brown. Before getting started with today's program, please direct your attention to some opening remarks from Mr. Ferry. Thanks, Adrian.

Welcome everyone and thank you for joining us. Earlier today, we issued our third quarter earnings press release. Copies are available in the investor relations section of our website. I encourage all attendees to view the press release to better understand some of the details we'll be discussing today. As part of our growth this year, we have changed the format of our quarterly earnings call from a standard conference call to a video-based presentation. We hope this new format will enable us to communicate better to our audience and give you better insight as to how our management team operates. I am very pleased with the results we will share with you today. Our team has been working super hard to pivot the business into the data center and power space, and now it's really beginning to pay off. I would like to make a few comments about what we're seeing in what I will refer to as an arms race for AI computing power. Everyone knows that the hyperscalers and large data center developers are moving as fast as they can to build data center parks, that are slated to consume at least 250 megawatts and growing to 2 gigawatts in some cases. This is an effort to monetize the incredible demand for AI computing. The number one thing that is limiting this growth is the lack of power. That's obviously good news for DUO since we have a 5% stake in APR Energy. The strategic problem set, however, is the shortfall of power generation assets that can be manufactured to meet the demand. This is causing the hyperscalers to begin to seek alternatives, specifically edge computing. Why edge computing? Because smaller edge data centers can be put in quickly, they consume much smaller amounts of power, no water, and in a distributed manner, which means they can connect to the grid and not material impact the local utility grid customers. Duos is perfectly positioned to address this demand, and we are in discussions with two to three large developers to address more strategic edge computing opportunities. Another supply chain pain point not as prevalent in the news, but just as important, is the procurement of smaller items such as fiber, medium voltage cabling, batteries, breaker panels, and backup generators. Large data center builders are frustrated with the long processing times of their traditional suppliers, which is why we have recently added key capabilities to our data center staff that are experts in this area so we can take advantage of this high growth opportunity, which would also diversify our data center offerings. I want to give you a reminder of what our strategy has been for the last 18 months and going forward into the next year. First, we are pivoting and focusing our resources into the edge computing space. We are now adding additional data center service offerings that will add even more value for DUOS beginning in the fourth quarter and for next year. Second, the revenues we earned through our asset management agreement with APR Energy, along with a 5% equity stake, have given us the financial ability to execute this pivot through our data center strategy. We do not, however, want to be reliant on the asset management agreement. as it will conclude in 2026, which is why we are adding additional data center offerings that we'll discuss later today. Third, we are actively working on options for the future of our rail car inspection portal business, which has remained largely flat for us. The end state for 2026 will be a standalone dual business that is profitable and 100% focused on the data center space with two to three diverse data center offerings and sources of revenues coming from it. Before getting to the results for Q3, I would like to formally announce some planned senior management changes. Adrian Goldfarb will formally relinquish his CFO role effective November 15th. Adrian has been our CFO for a second time since May 2024 and served his first tour as CFO starting in April 2015 when Duos became a public company until November of 2022. During this period, he led Duos through the successful uplisting to the NASDAQ in 2020. His most recent tour of duty has been to assist me with executing the strategy I just described. Over the past 18 months, we have accomplished a complete transformation of Duos with the establishment of Duos Edge AI and closing the deal with APR Energy and Fortress Investment Group. Adrian has been a good mentor for me, and I appreciate him teaching me the ropes on running a public company. Adrian has been a consummate financial partner for me, and he deserves everyone's thanks for our recent successes. I have asked Adrian to once again serve as a strategic advisor for another 12 months to ensure a smooth transition with his replacement and to help sustain the momentum we have now. Stepping up into the CFO role is Leah Brown, who has been our number two finance leader for the last three years. Leah had significant experience with other larger companies before joining us. Here at Duos, she has played a key role in leading our finance team to meet the complexities of managing three diverse lines of business. Congratulations, Leah, and I look forward to working with you in your new role. I would like to make a few comments regarding APR Energy. As has been previously discussed, I currently serve as CEO to both Duos and APR, and note that both companies have made significant progress this year. For DUOS, the asset management agreement has been a major success and contributor to DUOS's growth during this transition. During the next several months, APR, in conjunction with DUOS, will be establishing independent operations. While the short-term effect of this may be for DUOS to record less revenues in 2026 from the asset management agreement, Duos's growth in the data center market from the edge deployments, supplemented by new initiatives into that market, are expected to more than offset any lower revenues from the AMA. With lower overall costs and expected higher margins, we anticipate that Duos will record further growth in 2026, along with full-year profitability on an adjusted EBITDA basis. Leah and Doug will be commenting on our progress and growth plans in a moment. This concludes my formal remarks. And before turning the call over to Doug and Leah, I'd like to ask Adrian to give his perspective and closing remarks. My thanks again to all shareholders for your support. I'll be happy to take questions at the end of our formal remarks.

Adrian. Thank you, Chuck. As was just mentioned, I will be retiring again from the position of CFO. Before I say farewell, I would like to give my perspective on where the company is today and how well I believe we are positioned for strong growth in the years ahead. In the past few years, Duos has invested heavily in both technology and operating capabilities. These strengths have allowed us to tackle complex projects and therefore positions us to capture many new opportunities. By the end of 2025, we will have deployed 15 of our edge data centers. achieved the highest revenues for a single year, executed multiple power projects, and began a push into the market for data center equipment to bolster our EDC business. As Chuck mentioned, I will continue to be engaged with Duos for the next 12 months, primarily to aid in the transition, and I plan to work closely with the senior management team to assist as necessary. I will be succeeded by Leah Brown, currently Senior VP of Accounting, who will assume the title of CFO effective November 15th. Leah has been the mainstay of the Duos financial team for the past three years, and has done an outstanding job of building out our capabilities and providing support for me as we navigated the capital markets in order to get Duos properly funded, which was achieved this summer. Leah will give her remarks now, including guidance. but I am pleased to report that with the actions senior management has taken over the last 18 months, we have achieved positive adjusted EBITDA for Q3, one quarter ahead of our projection. Congratulations to everyone involved in this milestone achievement. And with that, I will now ask Leah to give the financial report for Q3. Over to you, Leah.