Duos Technologies Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NOTE 10 - SUBSEQUENT EVENTS

NOTE 10 - SUBSEQUENT EVENTS	6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]
NOTE 10 - SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS On July 1, 2015 the Company agreed terms with a shareholder for the conversion of an outstanding note of $50,000. The note had expired at the end of 2014 and the shareholder agreed to convert the original principal of $50,000 in the Company’s stock and that the balance of the interest of $13,975 would be paid in cash. On July 8, 2015 the Company received $10,000 and on July 17, 2015 the Company received an additional $10,000 from a shareholder in the form of a $20,000 Convertible Note. The terms of the note are 2 years, convertible into the Company’s stock at a 35% discount from the average of the previous 5 trading day’s closing prices prior to notice of conversion. The Company will record a note premium in the amount of $10,769 based on this note qualifying as stock settled debt under ASC 480. On July 14, 2015 the Company did not make a payment to a shareholder for a note that came due on that date. The note is for $150,068 in principal and accrued interest of $14,932 for a total of $165,000. Management has been in ongoing discussions with the noteholder regarding converting part of note into the Company’s stock and as of this report, these negotiations are ongoing. On August 10, 2015, the Company entered into an agreement with FacilityTeam of Ontario, Canada to settle a dispute that had arisen concerning payments for software development services (as discussed in Note 6). The Company strongly believed that FacilityTeam did not deliver the products promised and felt that we would prevail in an upcoming Arbitration called for by the contract between the parties. Ultimately, the Company opted to settle the matter for the anticipated cost of the litigation which was estimated be at least $60K rather than spend further resources on defending the claim and pursuing the counterclaim against FacilityTeam. The Company agreed to pay to FacilityTeam $2,500 per month starting in the fourth quarter of 2015 for 24 months and anticipates taking a charge in third quarter of 2015 of the settlement amount.

NOTE 10 - SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

NOTE 10 – SUBSEQUENT EVENTS

On July 1, 2015 the Company agreed terms with a shareholder for the conversion of an outstanding note of $50,000. The note had expired at the end of 2014 and the shareholder agreed to convert the original principal of $50,000 in the Company’s stock and that the balance of the interest of $13,975 would be paid in cash.

On July 8, 2015 the Company received $10,000 and on July 17, 2015 the Company received an additional $10,000 from a shareholder in the form of a $20,000 Convertible Note. The terms of the note are 2 years, convertible into the Company’s stock at a 35% discount from the average of the previous 5 trading day’s closing prices prior to notice of conversion. The Company will record a note premium in the amount of $10,769 based on this note qualifying as stock settled debt under ASC 480.

On July 14, 2015 the Company did not make a payment to a shareholder for a note that came due on that date. The note is for $150,068 in principal and accrued interest of $14,932 for a total of $165,000. Management has been in ongoing discussions with the noteholder regarding converting part of note into the Company’s stock and as of this report, these negotiations are ongoing.

On August 10, 2015, the Company entered into an agreement with FacilityTeam of Ontario, Canada to settle a dispute that had arisen concerning payments for software development services (as discussed in Note 6). The Company strongly believed that FacilityTeam did not deliver the products promised and felt that we would prevail in an upcoming Arbitration called for by the contract between the parties. Ultimately, the Company opted to settle the matter for the anticipated cost of the litigation which was estimated be at least $60K rather than spend further resources on defending the claim and pursuing the counterclaim against FacilityTeam. The Company agreed to pay to FacilityTeam $2,500 per month starting in the fourth quarter of 2015 for 24 months and anticipates taking a charge in third quarter of 2015 of the settlement amount.