Duos Technologies Group (DUOT) Lytham Partners Fall 2024 Investor Conference summary

Strategic transformation and business overview

• Underwent significant leadership change in 2020, leading to a redefinition and expansion of business focus.

• Now operates three divisions: technology (rail and beyond), edge data centers, and energy infrastructure.

• Technology division leverages AI and machine learning for real-time railcar inspection, with patents covering key innovations.

• Edge AI division formed to commercialize edge data centers, targeting rural and underserved markets.

• Energy division established to provide off-grid power solutions for data centers, leveraging management’s power sector expertise.

Technology and innovation

• Railcar inspection system automates safety checks at high speeds, producing detailed images and real-time alerts.

• AI algorithms identify defects and anomalies, improving safety and efficiency for rail operators.

• Technology applicable to other industries, with R&D underway for trucks and aircraft.

• Strong support from regulators and unions due to enhanced safety and job efficiency.

Edge data center expansion

• Edge data centers process data locally, reducing inspection times from hours to minutes.

• Business expects rapid growth, with projections of $65M annual recurring revenue and $41M EBITDA by 2027.

• Three centers operational by end of 2024, aiming for 15 by end of 2025 and up to 200 by 2027.

• Focused on Tier 3 and 4 rural markets, leveraging significant state broadband funding.