Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING

v3.26.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12 – SEGMENT REPORTING

 

Beginning on January 1, 2025, the Company operates in four 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, (3) delivering manufacturer-agnostic infrastructure sourcing, integration, and value-added supply chain services supporting data center, AI, and enterprise deployments, herein known as the “Technology Solutions” and (4) 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 Technology Solutions business unit, which delivers manufacturer-agnostic infrastructure sourcing, integration, and value-added supply chain services supporting data center, AI, and enterprise deployments.

 

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 segments 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 years ended December 31, 2025 and 2024 was as follows:

 

At Year ended December 31, 2025

                                   
    Technologies     Technology Solutions     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 4,261,642     $ 349,166     $ 56,000     $ 22,356,843     $ —     $ 27,023,651  
                                                 
Cost of revenues     3,371,115       320,143       157,171       15,297,513       —       19,145,942  
Operating Expenses (excluding depreciation and amortization)     10,091,441       247,481       2,783,045       —       2,437       13,124,404  
Depreciation and amortization     581,747       —       295       —       —       582,042  
Stock Compensation     —       —       —       —       3,934,141       3,934,141  
Income (loss) from operations     (9,782,661 )     (218,458 )     (2,884,511 )     7,059,330       (3,936,578 )     (9,762,878 )
Interest Expense     (3,265 )     —       (435,996 )     —       —       (439,261 )
Gain (Loss) on extinguishment of debt     —       —       (95,718 )     —       —       (95,718 )
Other Income     63,954       —       25,645       5,497       367,730       462,826  
Income (loss) before provision for income taxes     (9,721,972 )     (218,458 )     (3,390,580 )     7,064,827       (3,568,848 )     (9,835,031 )
Provision for income taxes     —       —       —       —       —       —  
Net income (loss)   $ (9,721,972 )   $ (218,458 )   $ (3,390,580 )   $ 7,064,827     $ (3,568,848 )   $ (9,835,031 )

 

 

At Year ended December 31, 2024

                                     
    Technologies     Technology Solutions     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 6,359,323     $ —     $ —     $ 921,562     $ —     $ 7,280,885  
                                              —  
Cost of revenues     5,869,379       —       —       942,291       —       6,811,670  
Operating Expenses (excluding depreciation and amortization)     8,785,917       —       478,948       —       —       9,264,865  
Depreciation and amortization     2,161,647       —       75       —       —       2,161,722  
Stock Compensation     —       —       —       —       26,154       26,154  
Income (loss) from operations     (10,457,620 )     —       (479,023 )     (20,729 )     (26,154 )     (10,983,526 )
Interest Expense     (3,865 )     —       (282,249 )     —       —       (286,114 )
Change in fair value of warrant liabilities     —       —       —       —       245,980       245,980  
Gain (Loss) on extinguishment of warrant liabilities     —       —       —       —       379,626       379,626  
Other Income     (126,486 )     —       5,628       435       —       (120,423 )
Income (loss) before provision for income taxes     (10,587,971 )     —       (755,644 )     (20,294 )     599,452       (10,764,457 )
Provision for income taxes     —       —       —       —       —       —  
Net income (loss)   $ (10,587,971 )   $ —     $ (755,644 )   $ (20,294 )   $ 599,452     $ (10,764,457 )

 

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

           
    December 31,
2025		     December 31,
2024		  
Technologies   $ 2,266,518     $ 11,819,377  
Technology Solutions     581,366       —  
Data Center Hosting & Related Services     28,024,994       4,131,189  
Asset Management Services     12,537,718       7,530,274  
Corporate and Unallocated     19,998,819       11,477,837  
    $ 63,409,415     $ 34,958,677  

  

All assets are located in the United States.