Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12 – SEGMENT REPORTING  

 

Beginning on January 1, 2025, the Company operated in three operating and reportable segments: Technologies Services and Consulting which includes Services and Consulting, Data Center Hosting & Related Services, and Technology Solutions. As described in Notes 1 and 3, during the second quarter of 2026 the Duos Technologies, Inc. business, which comprised the entire Technologies segment, was classified as held for sale and as discontinued operations. Accordingly, for the periods presented in this report, the Company has three operating and reportable segments, each reflecting continuing operations only: (1) deploying Edge Data Centers for localized data processing in rural and underserved markets and providing GPU-as-a-service, herein known as the "Data Center Hosting & Related Services" segment, (2) 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 (3) Services and Consulting, providing asset management services under the AMA with New APR through its wind-down, herein known as the "Services and Consulting" segment. Segment information for all prior periods presented has been recast to exclude the discontinued Technologies segment and to reflect continuing operations only. The Company has determined that these reportable segments are strategic business units that offer different products and services and are managed separately based on the fundamental differences in their operations.

 

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 Services and Consulting segment that includes Asset Management Services 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 Services and Consulting segments are the same as those described in Note 1 of the Condensed Notes to the Consolidated Financial Statements.

 

Information with respect to these reportable business segments for the three and six months ended June 30, 2026 and 2025 was as follows:

 

Three Months ended June 30, 2026

                             
    Technology Solutions     Data Center Hosting & Related Services     Services and Consulting     Corporate and Unallocated     Consolidated  
Net revenues   $ 3,231,544     $ 32,549     $ 2,911,330     $ —     $ 6,175,423  
Cost of revenues     2,404,108       98,964       226,255       —       2,729,327  
Operating Expenses (excluding depreciation and amortization)     1,017,361       610,297       —       1,353,513       2,981,171  
Depreciation and amortization     —       53,997       —       —       53,997  
Stock Compensation     —       —       —       361,835       361,835  
Income (loss) from operations     (189,925 )     (730,709 )     2,685,075       (1,715,348 )     49,093  
Interest Expense     —       (121 )     —       —       (121 )
Interest income on  lease receivable     —       3,325       —       —       3,325  
Other Income     11       2,603       447       53,584,232       53,587,292  
Income (loss) before provision for income taxes     (189,914 )     (724,902 )     2,685,522       51,868,884       53,639,590  
Provision for income taxes (Expense)     —       —       —       (4,984,170 )     (4,984,170 )
Net income (loss) from continuing operations   $ (189,914 )   $  (724,902 )   $  2,685,522     $  46,884,714     $  48,655,420  

 

 

Three Months ended June 30, 2025

 

The Company reclassified certain prior period balances to confirm to current period presentation related to Discontinued Operations. See Note 3 Discontinued Operations. 

                               
    Technology Solutions     Data Center Hosting & Related Services     Services and Consulting     Corporate and Unallocated     Consolidated  
Net revenues   $ —     $ 8,000     $ 4,760,403     $ —     $ 4,768,403  
Cost of revenues     —       15,343       2,976,469       —       2,991,812  
Operating Expenses (excluding depreciation and amortization)     —       495,282       —       1,711,299       2,206,581  
Depreciation and amortization     —       15,376       —       —       15,376  
Stock Compensation     —       —       —       1,094,816       1,094,816  
Income (loss) from operations     —       (518,001 )     1,783,934       (2,806,115 )     (1,540,182 )
Interest Expense             (87,348 )     —       —       (87,348 )
Interest Income on lease receivable             1,246       —       —       1,246  
Other Income             5,417       552       2,785       8,754  
Income (loss) before provision for income taxes     —       (598,686 )     1,784,486       (2,803,330 )     (1,617,530 )
Provision for income taxes             —       —       —       —  
Net income (loss) from continuing operations   $ —     $ (598,686 )   $ 1,784,486     $ (2,803,330 )   $ (1,617,530 )

 

 

Six Months ended June 30, 2026

                             
    Technology Solutions     Data Center Hosting & Related Services     Services and Consulting     Corporate and Unallocated     Consolidated  
Net revenues   $ 3,793,998     $ 62,824     $ 4,463,902     $ —     $ 8,320,724  
Cost of revenues     2,910,678       138,397       770,112       —       3,819,187  
Operating Expenses (excluding depreciation and amortization)     1,017,361       1,117,698       —       3,645,307       5,780,366  
Depreciation and amortization     —       96,650       —       —       96,650  
Stock Compensation     —       —       —       1,749,704       1,749,704  
Income (loss) from operations     (134,041 )     (1,289,921 )     3,693,790       (5,395,011 )     (3,125,183 )
Interest Expense     —       (121 )     —       —       (121 )

Interest income on lease receivable

     —       6,765       —       —       6,765  
Other Income     11       2,603       6,339       53,714,201       53,723,154  
Income (loss) before provision for income taxes     (134,030 )     (1,280,674 )     3,700,129       48,319,190       50,604,615  
Provision for income taxes (Expense)     —       —       —       (4,984,170 )     (4,984,170 )
Net income (loss) from continuing operations   $ (134,030 )   $ (1,280,674 )   $ 3,700,129     $ 43,335,020     $ 45,620,445  

  

 

Six Months ended June 30, 2025

  

The Company reclassified certain prior period balances to confirm to current period presentation related to Discontinued Operations. See Note 3 Discontinued Operations.

                               
    Technology Solutions     Data Center Hosting & Related Services     Services and Consulting     Corporate and Unallocated     Consolidated  
Net revenues   $  —     $ 8,000     $ 8,675,153     $ —     $ 8,683,153  
Cost of revenues     —       15,343       5,634,537       —       5,649,880  
Operating Expenses (excluding depreciation and amortization)     —       825,690       —       2,211,443       3,037,133  
Depreciation and amortization     —       68       —       —       68  
Stock Compensation     —       —       —       2,068,819       2,068,819  
Income (loss) from operations     —       (833,100 )     3,040,616       (4,280,262 )     (2,072,747 )
Interest Expense     —       (406,661 )     —       —       (406,661 )
Other Income      —       16,096       2,636       23,811       42,543  
Income (loss) before provision for income taxes     —       (1,223,666 )     3,043,252       (4,256,451 )     (2,436,865 )
Provision for income taxes     —       —       —       —       —  
Net income (loss) from continuing operations   $ —     $ (1,223,666 )   $ 3,043,252     $ (4,256,451 )   $ (2,436,865 )

 

 

Total assets by segment on June 30, 2026 and December 31, 2025 were:

           
    June 30,
2026		     December 31,
2025		  
Technologies (Assets held for sale)   $ 6,426,222     $ 6,342,772  
Technology Solutions     6,658,597       581,366  
Data Center Hosting & Related Services     102,393,324       28,024,994  
Services and Consulting     193,659       12,537,718  
Corporate and Unallocated     125,615,141       15,922,566  
    $ 241,286,943     $ 63,409,416  

   

All assets are located in the United States.