DUOT

The headline is seductive — revenue up 271% to $27.0M — but the filing shows the growth is neither organic nor durable. Of the $27.0M, $22.36M (83%) is 'Services and consulting — Related parties,' driven almost entirely by Duos Energy's Asset Management Agreement with New APR ($18.74M) plus $3.62M of amortized deferred revenue tied to DUOT's own 5% equity interest in New APR's parent. That is a single related-party arrangement, struck 2024-12-31, doing the heavy lifting. Meanwhile the historical core — the high-speed Railcar Inspection Portals in 'Technology systems' — collapsed 83% ($2.25M→$0.37M) on customer-site deployment delays management concedes are 'outside of the Company's control.' The five-year revenue path ($8.3M→$15.0M→$7.5M→$7.3M→$27.0M) confirms this is a lumpy, project- and counterparty-dependent business, not a compounding one.

Quality is thin. Gross margin is just 29.2% and operating margin -36.1%; the company lost $9.84M and, more importantly, burned $13.7M in operating cash (down 294% YoY) while spending $23.7M on capex (+1192%) to build out edge data centers that produced all of $56K in hosting revenue in 2025. Against that ~$37M combined cash outflow sits only $15.5M of cash. Equity looks healthy at $48.6M with liabilities/equity of just 0.31x, but that equity was manufactured by dilution — shares outstanding jumped 156% and equity rose 2047% — and it sits atop an $84.2M accumulated deficit. The math points to further capital raises and continued shareholder dilution to fund the AI/edge/energy pivot.