Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.26.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2026
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 and providing GPUaaS, 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” segment 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 and providing GPU as a service.

 

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, Technology Solutions, 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 three months ended March 31, 2026 and 2025 was as follows:

 

Three Months ended March 31, 2026

                                   
    Technologies     Technology Solutions     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 576,726     $ 562,454     $ 30,275     $ 1,552,572     $ —     $ 2,722,027  
                                                 
Cost of revenues     21,799       506,570       39,433       543,857       —       1,111,659  
Operating Expenses (excluding depreciation and amortization)     2,761,763       467,228       550,455       —       2,437       3,781,883  
Depreciation and amortization     101,894       —       —       —       —       101,894  
Stock Compensation     —       —       —       —       1,358,137       1,358,137  
Income (loss) from operations     (2,308,730 )     (411,344 )     (559,613 )     1,008,715       (1,360,574 )     (3,631,546 )
Interest Expense     —       —       —       —       —       —  
Other Income     1,477       —       3,440       5,892       128,492       139,301  
Income (loss) before provision for income taxes     (2,307,253 )     (411,344 )     (556,173 )     1,014,607       (1,232,082 )     (3,492,245 )
Provision for income taxes     —       —       —       —       —       —  
Net income (loss)   $ (2,307,253 )   $ (411,344 )   $ (556,173 )   $ 1,014,607     $ (1,232,082 )   $ (3,492,245 )

 

Three Months ended March 31, 2025

                                     
    Technologies     Technology Solutions     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 taxes     —       —       —       —       —       —  
Net income (loss)   $ (1,741,304 )   $ —     $ (623,734 )   $ 1,258,765     $ (973,390 )   $ (2,079,663 )

 

 

Total assets by segment on March 31, 2026 and December 31, 2025 were:

Schedule of segment assets            
    March 31,
2026		     December 31,
2025		  
Technologies   $ 2,771,431     $ 2,266,518  
Technology Solutions     5,375,733       581,366  
Data Center Hosting & Related Services     69,456,717       28,024,994  
Asset Management Services     7,921,214       12,537,718  
Corporate and Unallocated     37,391,967       19,998,819  
    $ 122,917,062     $ 63,409,415  

   

All assets are located in the United States.