Duos Technologies Group, Inc. Annual report pursuant to Section 13 and 15(d)

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Reclassifications
		Before Reclassification				After Reclassification
		For the Year Ended				For the Year Ended
		December 31,				December 31,
		2020				2020
REVENUES:				REVENUES:
Technology systems	$	4,956,130		Technology systems	$	5,964,801
Technical support		1,801,043		Services and consulting		2,074,647
Consulting services		273,604		—		—
AI technologies		1,008,671		—		—

Total Revenue		8,039,448		Total Revenue		8,039,448

COST OF REVENUES:				COST OF REVENUES:
Technology systems		3,665,493		Technology systems		5,642,880
Technical support		1,109,741		Services and consulting		1,139,357
Consulting services		117,004		Overhead		1,021,375
AI technologies		360,817		—		—

Total Cost of Revenues		5,253,055		Total Cost of Revenues		7,803,612

GROSS MARGIN		2,786,393		GROSS MARGIN		235,836

OPERATING EXPENSES:				OPERATING EXPENSES:
Sales and marketing		717,809		Sales and marketing		717,809
Engineering		1,358,925		Research and development		102,219
Research and development		1,022,188		Administration		6,050,236
Administration		5,011,913		—		—
AI technologies		1,309,986		—		—

Total Operating Expenses		9,420,821		Total Operating Expenses		6,870,264

LOSS FROM OPERATIONS	$	(6,634,428	)	LOSS FROM OPERATIONS	$	(6,634,428	)


Segments	Rail		Commercial		Petrochemical			Government		Banking/Other		IT Suppliers		Artificial Intelligence		Total
Primary Geographical Markets
North America	$	6,883,670	$	213,517	$	(867	)	$	314,030	$	23,340	$	134,717	$	691,510	$	8,259,917

Major Goods and Service Lines
Turnkey Projects	$	5,255,491	$	27,831	$	—		$	233,145	$	1,537	$	—	$	—	$	5,518,004
Maintenance & Support		1,628,179		185,686		(867	)		80,885		21,803		—		341,915		2,257,601
Data Center Auditing Services		—		—		—			—		—		131,537		—		131,537
Software License		—		—		—			—		—		3,180		—		3,180
Algorithms		—		—		—			—		—		—		349,595		349,595
	$	6,883,670	$	213,517	$	(867	)	$	314,030	$	23,340	$	134,717	$	691,510	$	8,259,917

Timing of Revenue Recognition
Goods transferred over time	$	5,255,491	$	27,831	$	—		$	233,145	$	1,537	$	131,537	$	349,595	$	5,999,136
Services transferred over time		1,628,179		185,686		(867	)		80,885		21,803		3,180		341,915		2,260,781
	$	6,883,670	$	213,517	$	(867	)	$	314,030	$	23,340	$	134,717	$	691,510	$	8,259,917

Quantitative:

For the Year Ended December 31, 2020

Segments	Rail		Commercial		Petrochemical			Government		Banking		IT Suppliers		Artificial Intelligence		Total
Primary Geographical Markets
North America	$	5,558,405	$	298,705	$	23,951		$	687,293	$	188,819	$	273,604	$	1,008,671	$	8,039,448

Major Goods and Service Lines
Turnkey Projects	$	4,131,155	$	59,616	$	33,363		$	599,481	$	132,515	$	—	$	—	$	4,956,130
Maintenance & Support		1,427,250		239,089		(9,412	)		87,812		56,304		—		—		1,801,043
Data Center Auditing Services		—		—		—			—		—		266,449		—		266,449
Software License		—		—		—			—		—		7,155		—		7,155
Algorithms		—		—		—			—		—		—		1,008,671		1,008,671
	$	5,558,405	$	298,705	$	23,951		$	687,293	$	188,819	$	273,604	$	1,008,671	$	8,039,448

Timing of Revenue Recognition
Goods transferred over time	$	4,131,155	$	59,616	$	33,363		$	599,481	$	132,515	$	273,604	$	1,008,671	$	6,238,405
Services transferred over time		1,427,250		239,089		(9,412	)		87,812		56,304		—		—		1,801,043
	$	5,558,405	$	298,705	$	23,951		$	687,293	$	188,819	$	273,604	$	1,008,671	$	8,039,448