Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

 

Beginning on January 1, 2025, the Company operates in three operating and reportable segments which consist of (1) applying machine vision and AI to analyze high-speed objects and generate revenue from system installations, AI integrations, support, and consulting, herein known as the “Technologies” segment, (2) deploying Edge Data Centers for localized data processing in rural and underserved markets, herein known as the “Data Center Hosting & Related Services” segment, and (3) providing Asset Management Services under the AMA with New APR, managing mobile gas turbines and related assets, herein known as the “Asset Management Services” segment. The Company has determined that these reportable segments were strategic business units that offer different products and services. Currently, these reportable segments are being managed separately based on the fundamental differences in their operations.

 

The Company’s Technologies segment applies machine vision and AI to monitor and analyze high-speed objects such as trains, trucks, automobiles, and aircraft, and generates revenue through its technology systems, AI applications, ongoing technical support, and consulting services.

 

The Company’s Data Center Hosting & Related Services segment generates revenues through the deployment of Edge Data Centers that enable faster, localized data processing in rural and underserved markets, providing scalable solutions for enterprise and government clients.

 

The Company’s Asset Management Services segment generates revenues through the AMA with New APR, whereby Duos Energy oversees the deployment and operation of a fleet of mobile gas turbines and balance-of-plant inventory, providing management, sales, and operations support to New APR.

 

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.”

 

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The decisions concerning the allocation of the Company’s resources are made by the CODM with oversight by the Board of Directors. The CODM evaluates the performance of each segment and makes decisions concerning the allocation of resources based upon segment operating profit (loss), generally defined as income or loss before interest expense and income taxes. The CODM assesses segment performance by using each segment’s operating income (loss) and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including whether to invest resources into the segments or into other parts of the Company. Segment assets are reviewed by the Company’s CODM and are disclosed below. The accounting policies of the Technologies, Data Center Hosting & Related Services, and Asset Management Services segment are the same as those described in Note 1 of the Notes to Consolidated Financial Statements.

 

Information with respect to these reportable business segments for the three months ended March 31, 2025 and 2024 was as follows:

 

Three Months Ended March 31, 2025

                             
    Technologies     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 1,037,435     $ —     $ 3,914,750     $ —     $ 4,952,185  
                                         
Cost of revenues     980,458       —       2,658,068       —       3,638,526  
Operating Expenses (excluding depreciation and amortization)     1,649,951       315,066       —       —       1,965,017  
Depreciation and amortization     164,233       34       —       —       164,267  
Stock Compensation     —       —       —       974,003       974,003  
Income (loss) from operations     (1,757,206 )     (315,100 )     1,256,682       (974,003 )     (1,789,628 )
Interest Expense     (3,265 )     (319,312 )     —       —       (322,577 )
Other Income     19,168       10,678       2,083       613       32,542  
Income (loss) before provision for income taxes     (1,741,304 )     (623,734 )     1,258,765       (973,390 )     (2,079,663 )
Provision for income tazes     —       —       —       —       —  
Net income (loss)   $ (1,741,304 )   $ (623,734 )   $ 1,258,765     $ (973,390 )   $ (2,079,663 )

 

 

Three Months Ended March 31, 2024

                               
    Technologies     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 1,070,680     $ —     $ —     $ —     $ 1,070,680  
                                      —  
Cost of revenues     976,048       —       —       —       976,048  
Operating Expenses (excluding depreciation and amortization)     2,556,266       —       —       —       2,556,266  
Depreciation and amortization     158,208       —       —       —       158,208  
Stock Compensation     —       —       —       141,204       141,204  
Income (loss) from operations     (2,619,842 )     —       —       (141,204 )     (2,761,046 )
Interest Expense     (445 )     —       —       —       (445 )
Other Income     9,182       —       —       —       9,182  
Income (loss) before provision for income taxes     (2,611,105 )     —       —       (141,204 )     (2,752,309 )
Provision for income tazes     —       —       —       —       —  
Net income (loss)   $ (2,611,105 )   $ —     $ —     $ (141,204 )   $ (2,752,309 )

  

Total assets by segment on March 31, 2025 and December 31, 2024:

             
    March 31,
2025		     December 31,
2024		  
Technologies   $ 11,609,457     $ 11,819,377  
Data Center Hosting & Related Services     4,589,740       4,131,189  
Asset Management Services     8,993,625       7,530,274  
Corporate and Unallocated     8,894,518       11,477,837  
    $ 34,087,340     $ 34,958,677  

 

All assets are located in the United States.