NASDAQ: DUOT

Overview

Headquartered in Jacksonville, Florida, the Company
operates through several wholly owned subsidiaries, including Duos Edge AI, Inc., Duos Technologies, Inc., and Duos Energy Corporation,
The Company delivers AI-driven technologies, edge computing infrastructure, and energy consulting services to support data-intensive and
mission-critical operations. Duos is strategically focused on scaling its edge data center platform through Duos Edge AI. Together, these
platforms position the Company to address growing demand for distributed digital infrastructure, while continuing to support legacy machine
vision applications and provide energy-related services.

Evolution of the Company’s Strategy

Over the past several years, the Company has
evolved from a technology developer and provider, primarily focused on automated inspection and analytics solutions, toward a broader
digital infrastructure platform centered on edge computing and distributed data center deployments. While our legacy solutions demonstrated
the value of localized computing power, real-time data processing, and AI-enabled analytics in mission-critical environments, market
dynamics and customer demand increasingly favor infrastructure-centric solutions that bring compute and connectivity closer to the point
of use. This evolution has guided our strategic expansion into modular Edge Data Centers and infrastructure solutions and services.

Continued Support of Existing Solutions

The Company continues to support and operate
its existing technology platforms and customer deployments. We believe our prior experience in deploying edge compute systems, operating
in regulated environments, and managing complex installations provides a strong foundation for our digital infrastructure initiatives.

Expansion Into Digital Infrastructure and Edge
Data Centers

During fiscal 2024, the Company significantly
expanded its focus on deploying modular EDCs and building a repeatable platform to support distributed compute workloads across education,
healthcare, service provider, enterprise, and public sector customers. These deployments are designed to generate both initial deployment
revenue and long-term recurring revenue streams tied to infrastructure utilization and services.

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Infrastructure Solutions and Value-Added Services

In addition to owning and deploying infrastructure,
the Company recently launched Duos Technologies Solutions, an infrastructure solutions line of business as a complementary business unit
to Duos Edge AI that provides manufacturer-agnostic sourcing, logistics coordination, and fulfillment services. This expansion leverages
internal expertise while addressing customer demand for supply chain resilience, reduced lead times, and execution certainty in a constrained
AI digital infrastructure market.

Capital Discipline and Execution Focus

Management believes this strategy enables a capital-efficient
growth model that balances infrastructure ownership with services-based revenue, supports disciplined deployment pacing, and mitigates
risks associated with large, centralized data center development. The Company intends to continue refining this model as market conditions
and customer demand evolve. This integrated model is intended to support both the Company’s owned and operated infrastructure footprint
as well as third-party customer deployments.

Strategic Focus: Digital Infrastructure and Edge
Data Centers

The Company is focused on expanding a distributed
digital infrastructure platform designed to support:

• AI and machine learning
workloads

• Edge and latency-sensitive
applications

• Carrier-neutral connectivity

• Regional and underserved
market deployments

• Enterprise and public-sector
digital modernization initiatives

Through Duos Edge AI, the Company’s flagship
subsidiary expected to generate most if not all of the anticipated growth going forward, the Company develops modular, rapidly deployable
Edge Data Centers intended to bring enterprise-grade computing capacity closer to end users. These facilities are designed to support
localized processing, improved network performance, and scalable capacity without the capital intensity typically associated with traditional
hyperscale development.

The Company’s strategy includes:

• Deploying EDCs in Tier
2–4 and underserved markets

• Supporting education,
healthcare, service providers, and enterprise customers

• Enabling AI inference
and distributed compute use cases

• Building a repeatable,
capital-efficient deployment model

• Expanding recurring
revenue opportunities through colocation and infrastructure services

While in the short term, the Company continues
to maintain certain legacy technology solutions, these offerings are no longer the primary strategic growth driver and the Company has
no further plans to invest in these legacy technologies.

Infrastructure Solutions and “White-Glove”
Supply Chain Services

Complementing its EDC platform, the Company has
expanded into data center infrastructure solutions through its Duos Technologies Solutions business unit. This business provides:

• Manufacturer-agnostic
sourcing of power, connectivity, thermal, and IT infrastructure

• Project-based procurement
and logistics coordination

• Vendor management and
quality assurance

• Streamlined fulfillment
for multi-site rollouts

• Deployment support
for both internal and third-party infrastructure projects

The Company’s services are intended to
function as a “white-glove” extension of customer procurement and deployment teams, helping reduce lead times, mitigate supply
chain risk, and improve execution speed across complex infrastructure programs.

These capabilities position the Company to support:

• Hyperscaler and AI
ecosystem participants

• Colocation operators

• Telecommunications
and fiber providers

• Enterprise and industrial
customers

• Public sector and education
networks

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By combining localized edge infrastructure with
value-added sourcing and fulfillment, the Company seeks to participate in multiple layers of the digital infrastructure value chain.

Technology and Intellectual Property

The Company has developed proprietary technologies
and holds patents and other intellectual property related to modular infrastructure design, edge computing deployment methodologies,
and intelligent data processing. The Company also utilizes commercially available hardware and third-party components integrated into
its engineered solutions.

The Company protects its intellectual property
through a combination of:

• Patents and trademarks

• Confidentiality and
assignment agreements

• Vendor and partner
contractual protections

Rapid technological change, evolving customer
requirements, and competitive innovation may affect the Company’s ability to maintain or extend its technological differentiation.
The Company vigorously defends its intellectual property where it believes infringements have occurred.

Legacy Intelligent Technology Solutions

Historically, the Company designed, developed,
and deployed intelligent inspection and analytics solutions utilizing machine vision and artificial intelligence for transportation and
logistics applications. These capabilities contributed to the Company’s software, AI, and systems integration expertise. One of
the developments this produced was the Edge Data Center, used for processing large amounts of digital images that could not be efficiently
processed using “the cloud”. The Company is now leading with that development as a distinct business due to the much larger
potential growth expected from deploying these units in certain markets. Although certain legacy solutions remain in operation and may
continue to generate revenue, the Company’s current strategic emphasis is the expansion of its digital infrastructure and data
center-related services. The Company does not intend to invest further resources in these legacy businesses and may look to monetize
them in the near future.

Growth Strategy The Company’s growth strategy
is centered on:

• Expanding its distributed
Edge Data Center footprint

• Increasing recurring
infrastructure and colocation revenue

• Scaling its infrastructure
sourcing and fulfillment platform

• Developing strategic
relationships across the data center and AI ecosystem

• Pursuing selective
partnerships or acquisitions that enhance infrastructure capabilities

Execution of this strategy may require continued
investment in deployment, supply chain coordination, personnel, and customer acquisition. Market adoption, capital availability, competitive
dynamics, and macroeconomic conditions may affect the pace of growth.

Industry Positioning

The Company operates within the broader digital
infrastructure and data center ecosystem, which includes hyperscale providers, colocation operators, telecommunications carriers, infrastructure
integrators, and equipment manufacturers. The market is characterized by:

• Rapid growth in AI
and data-intensive workloads

• Increasing demand for
distributed and edge compute capacity

• Long sales cycles for
infrastructure projects

• Supply chain constraints
affecting equipment availability

• Significant capital
requirements

The Company seeks to differentiate through a
combination of modular deployment capability, localized infrastructure strategy, and value-added supply chain and fulfillment services.

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Competitive Strengths

We believe the Company is differentiated by the
following competitive strengths:

Purpose-Built Modular Edge Infrastructure Platform
We have developed and deployed patented, modular Edge Data Centers (“EDCs”) with an architecture designed for rapid deployment,
operational efficiency, and scalability. Our EDCs are engineered to deliver enterprise-grade compute, storage, and connectivity closer
to end users, supporting low-latency workloads and distributed AI inference without reliance on centralized hyperscale facilities. Our
intellectual property includes a recently awarded patent for a “clean room” entry and access facility on each EDC which aims
to protect the highly sensitive and expensive equipment within the EDC. Integrated Infrastructure and Services Model Through our operating
subsidiaries, we combine infrastructure ownership, deployment expertise, and value-added infrastructure sourcing and fulfillment services.
This integrated model allows us to support customers across the full infrastructure lifecycle—from design and procurement through
deployment and ongoing operations—while reducing execution risk and accelerating time to service. Capital-Efficient, Repeatable
Deployment Strategy Our modular design and standardized deployment processes enable a repeatable, capital-efficient approach to scaling
digital infrastructure. By deploying infrastructure in smaller, phased increments, we reduce upfront capital requirements and align investment
more closely with customer demand.

Manufacturer-Agnostic Supply Chain Capabilities

Our infrastructure solutions platform operates
on a vendor-neutral basis, allowing us to source, qualify, and fulfill equipment across power, connectivity, cooling, and intelligent
technologies. This flexibility enhances supply chain resilience, mitigates vendor concentration risk, and enables faster response to
changing customer or market conditions.

Experience in Regulated and Mission-Critical
Environments

The Company has a long operating history delivering
technology solutions in regulated, mission-critical environments. This experience informs our approach to reliability, security, compliance,
and operational discipline across our data center and digital infrastructure offerings.

Positioned for Distributed AI and Edge Compute
Demand

We believe the continued growth of AI, latency-sensitive
applications, and data localization requirements is driving increased demand for distributed infrastructure models. Our solution services
is designed to support these workloads at the network edge, particularly in markets that are underserved by traditional data center development.

Duos Energy Corporation and Asset Management
Agreement

In late 2024, the Company formed Duos Energy Corporation (“Duos Energy”) with the express purpose of providing
consulting services and solutions for the rapidly growing demand for electrical power outside of traditional utilities. In December 2024,
Sawgrass Buyer LLC (now known as New APR Energy, LLC) entered into an Asset Management Agreement (“AMA”) with the Company
under which a substantial portion of Company staff would oversee the operations of New APR. The AMA has a two-year term with customary
cancellation provisions. The Company’s staff is engaged directly to supply power solutions for multiple uses including for large
data centers supporting AI “hyperscalers”. The expected services provided from the Company under the AMA have been modified
for 2026, and as a result, revenue previously referenced in earlier communications will not reach the originally indicated levels. Management
believes the Company’s Technology Solutions business line is positioned to offset variability through project-based infrastructure
revenue. While competition exists across the digital infrastructure and power markets, current industry conditions characterized by constrained
power availability and increasing demand for AI and data center capacity may create opportunities for the Company to selectively expand
deployments; however, the timing, scale, and financial impact of these opportunities remain subject to market conditions, partner execution,
and customer demand.

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Markets

Duos operates within the rapidly evolving edge
computing, artificial intelligence, and digital infrastructure markets, which are being driven by the exponential growth of data, increasing
demand for low-latency processing, and the expansion of cloud and hybrid computing architectures. Enterprises, governments, and service
providers are increasingly shifting toward distributed computing models that require processing power closer to the point of data generation.

The Company’s Edge Data Center (EDC) platform
is designed to address these market demands by enabling localized compute capacity in a modular and scalable form factor. Duos’
patented Edge AI technology supports real-time data processing and analytics at the edge, reducing reliance on centralized cloud infrastructure
and improving system performance, responsiveness, and security.

Duos is positioned to serve the growing demand
for high-performance computing and AI-driven applications through its high-density EDC solutions and GPU-as-a-Service (“GPUaaS”)
offerings. These solutions are designed to support workloads such as artificial intelligence, machine learning, data analytics, and other
compute-intensive applications. By delivering distributed GPU-enabled infrastructure, the Company enables customers to access scalable
processing capacity without the need for large, centralized data center investments.

In addition, Duos provides technology infrastructure
solutions for the broader data center ecosystem, including integrated systems for power, cooling, and connectivity that are optimized
for modular deployment. These solutions are designed to support rapid scalability, energy efficiency, and operational reliability in both
urban and remote environments.

While the Company continues to support its legacy
transportation and rail inspection customers, this market now represents a complementary component of its broader strategy. The Company’s
machine vision and AI-based inspection technologies provide a foundation for its continued innovation in computer vision and real-time
analytics, which are increasingly applied across its Edge AI and infrastructure platforms.

Duos believes its integrated approach—combining
Edge AI, modular infrastructure, and high-performance computing capabilities—positions the Company to capitalize on the significant
and growing demand for distributed digital infrastructure and next-generation data center solutions.

Patents and Trademarks

The Company relies on a combination of patents,
trademarks, trade secrets, proprietary know-how, and contractual protections to establish and maintain its competitive position, with
a primary focus on protecting innovations in edge computing, artificial intelligence, and modular infrastructure systems.

As of December 31, 2025, the Company holds multiple
issued U.S. patents and has additional patents pending, with an increasing concentration in Edge AI technologies, modular data center
design, and infrastructure optimization systems, while continuing to maintain intellectual property related to its legacy inspection platforms.

Patents

The Company’s patent portfolio includes
technologies related to:

Edge AI and Real-Time Processing Systems

Proprietary technologies enabling real-time data
processing, machine learning inference, and analytics at the edge, reducing latency and bandwidth requirements while enhancing system
performance.

Modular Edge Data Center Infrastructure (2025
Patent)

In 2025, the Company, through its subsidiary Duos
Edge AI, Inc., was granted a U.S. patent for an “Entryway for a Modular Data Center.” This innovation enhances physical security
and environmental protection for modular EDC deployments by incorporating advanced access control mechanisms and environmental filtration
systems designed to protect sensitive computing equipment in distributed and potentially harsh environments.

High-Density and Scalable Compute Environments

Technologies supporting modular and high-density
infrastructure configurations designed to accommodate GPU-enabled processing and high-performance computing workloads, including artificial
intelligence and data-intensive applications.

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Machine Vision and Inspection Systems

Legacy patents related to machine vision and imaging
systems continue to support the Company’s expertise in computer vision and data analytics, which are leveraged across its broader
Edge AI platform.

The Company believes its expanding patent portfolio
strengthens its position within the data center and edge computing ecosystem, supporting its ability to deliver secure, scalable, and
resilient infrastructure solutions.

Trademarks

The Company owns or has rights to various trademarks and service marks
used in connection with its products and services, including but not limited to:

· Duos
Edge AI®

· duostech®

· Railcar Inspection Portal RIP®

· obliquevue®

These trademarks support the Company’s brand recognition across both its infrastructure and legacy technology offerings.

Intellectual Property Strategy

The Company’s intellectual property strategy
is focused on advancing and protecting innovations that support its transition to digital infrastructure and Edge AI platform company,
including:

· Edge AI architecture enabling
real-time analytics and decision-making

· Modular and high-density Edge
Data Center (EDC) systems

· GPU-as-a-Service (GPUaaS) and
distributed computing infrastructure

· Integrated data center ecosystem
solutions, including power, cooling, and secure deployment technologies

Duos continues to invest in research and development
and intends to expand its intellectual property portfolio to support its long-term growth in the edge computing and infrastructure markets.

Our Growth Strategy and Vision

Duos Technologies Group, Inc. is executing a
strategic transition to expand its presence in digital infrastructure and artificial intelligence computing solutions through its subsidiary
Duos Edge AI, Inc. The Company’s strategy is focused on developing and deploying distributed computing infrastructure designed
to support the growing demand for artificial intelligence workloads, high-performance computing, and real-time data processing.

Development of Distributed Digital Infrastructure

The Company intends to develop a network of modular
infrastructure deployments designed to deliver high-performance computing capacity closer to end users and enterprise networks. These
deployments are intended to support applications requiring low-latency processing, including artificial intelligence, machine learning,
and other data-intensive workloads.

Expansion of Infrastructure Capacity

The
Company plans to expand infrastructure capacity through a phased deployment strategy utilizing modular infrastructure units that can
be installed and scaled in response to customer demand. The Company is evaluating multiple strategic sites capable of supporting high-density
compute deployments and is pursuing commercial relationships that support GPU hosting, infrastructure development, and related digital
infrastructure services. This model is intended to enable the Company to increase computing capacity incrementally while managing capital
expenditures and deployment timelines. The Company is also developing high-density infrastructure deployments utilizing modular facilities
capable of supporting GPU clusters and high-performance compute workloads. These deployments may include high-density EDC configurations
designed to host specialized computing hardware and support GPU-as-a-Service (“GPUaaS”) offerings for enterprise and technology
customers. GPUaaS platforms allow customers to access dedicated GPU compute resources without owning the underlying infrastructure, enabling
scalable artificial intelligence training and inference workloads.

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Growth of Recurring Revenue Streams

The Company intends to increase the proportion
of recurring revenue generated from infrastructure hosting, artificial intelligence computing services, and related technology offerings.
Management believes that long-term service agreements and infrastructure-based service models can provide greater revenue visibility
and stability over time.

Capital-Efficient Deployment Model

The Company’s infrastructure design emphasizes
modular and repeatable deployment methods intended to reduce development timelines and improve capital efficiency. By deploying infrastructure
in stages aligned with customer commitments, the Company seeks to manage capital requirements while expanding its operational footprint.

Strategic Partnerships and Customer Relationships

The Company seeks to establish commercial relationships
with technology providers, infrastructure partners, and enterprise customers to support deployment of its distributed computing platform.
These partnerships may include arrangements related to hardware procurement, infrastructure development, and the delivery of GPU-based
computing services.

In addition, the Company is expanding its infrastructure
solutions capabilities to support data center development, hardware sourcing, and related technology infrastructure services. These capabilities
are intended to support the deployment of high-performance computing environments while also generating project-based revenue opportunities.
Management believes the combination of distributed infrastructure deployments, GPU-based computing services, and infrastructure solutions
may position the Company to participate in the growing market for artificial intelligence infrastructure and high-performance compute
capacity.

Strategic Focus on Core Growth Platforms

As part of its long-term strategy, the Company
intends to prioritize investment in digital infrastructure and artificial intelligence computing platforms while evaluating strategic
alternatives for certain legacy or non-core business activities. Management believes this focus will allow the Company to allocate resources
toward business segments with the greatest long-term growth potential.

Employees

We have a current staff of 39 employees, of which
35 are full-time, the majority of which work in the Jacksonville area, none of which are subject to a collective bargaining agreement.
We have not experienced any work stoppages, and we consider our relationship with our employees to be good.

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