Duos Technologies Group, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

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

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

9 Months Ended

12 Months Ended

Sep. 30, 2022

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Reclassifications

Schedule of Reclassifications
	Before Reclassification				After Reclassification
	For the				For the
	Three Months Ended				Three Months Ended
	September 30,				September 30,
	2021				2021

REVENUES:				REVENUES:
Technology systems	$	1,153,150		Technology systems	$	1,153,150
Services and consulting		587,307		Services and consulting		587,307

Total Revenue		1,740,457		Total Revenue		1,740,457

COST OF REVENUES:				COST OF REVENUES:
Technology systems		1,869,812		Technology systems		1,363,127
Services and consulting		277,054		Services and consulting		305,669
Overhead		657,907		—		—

Total Cost of Revenues		2,804,773		Total Cost of Revenues		1,668,796

GROSS MARGIN		(1,064,316	)	GROSS MARGIN		71,661

OPERATING EXPENSES:				OPERATING EXPENSES:
Sales and marketing		361,820		Sales and marketing		361,820
Research and development		57,000		Research and development		332,469
General and administration		963,357		General and administration		1,823,865

Total Operating Expenses		1,382,177		Total Operating Expenses		2,518,154

LOSS FROM OPERATIONS	$	(2,446,493	)	LOSS FROM OPERATIONS	$	(2,446,493	)

The Company reclassified certain expenses for the nine months ended September 30, 2021 to conform to the 2022 classification. There was no net effect on the total expenses of such reclassification.

The following tables reflect the reclassification adjustment effect in the nine months ended September 30, 2021:

	Before Reclassification				After Reclassification
	For the				For the
	Nine Months Ended				Nine Months Ended
	September 30,				September 30,
	2021				2021

REVENUES:				REVENUES:
Technology systems	$	2,743,849		Technology systems	$	2,743,849
Services and consulting		1,800,030		Services and consulting		1,800,030

Total Revenue		4,543,879		Total Revenue		4,543,879

COST OF REVENUES:				COST OF REVENUES:
Technology systems		4,979,667		Technology systems		3,162,866
Services and consulting		986,757		Services and consulting		1,076,140
Overhead		1,754,731		—		—

Total Cost of Revenues		7,721,155		Total Cost of Revenues		4,239,006

GROSS MARGIN		(3,177,276	)	GROSS MARGIN		304,873

OPERATING EXPENSES:				OPERATING EXPENSES:
Sales and marketing		1,024,872		Sales and marketing		1,024,872
Research and development		197,164		Research and development		1,163,341
General and administration		2,817,949		General and administration		5,333,921

Total Operating Expenses		4,039,985		Total Operating Expenses		7,522,134

LOSS FROM OPERATIONS	$	(7,217,261	)	LOSS FROM OPERATIONS	$	(7,217,261	)

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	)

Schedule of Disaggregation of Revenue Quantitative

Disaggregation of Revenue
Segments	Rail		Commercial		Government		Artificial Intelligence		Total
Primary Geographical Markets

North America	$	3,765,312	$	32,821	$	23,245	$	200,860	$	4,022,238

Major Goods and Service Lines

Turnkey Projects	$	2,689,393	$	—	$	3,024	$	—	$	2,692,417
Maintenance and Support		1,075,919		32,821		20,221		183,378		1,312,339
Algorithms		—		—		—		17,482		17,482
	$	3,765,312	$	32,821	$	23,245	$	200,860	$	4,022,238

Timing of Revenue Recognition

Goods transferred over time	$	2,689,393	$	—	$	3,024	$	—	$	2,692,417
Goods delivered at point in time		—		—		—		17,482		17,482
Services transferred over time		532,250		32,821		20,221		183,378		768,670
Services delivered at point in time		543,669		—		—		—		543,669
	$	3,765,312	$	32,821	$	23,245	$	200,860	$	4,022,238

For the Three Months Ended September 30, 2021

Segments	Rail		Commercial		Government		Banking			IT Suppliers		Artificial Intelligence		Total
Primary Geographical Markets

North America	$	1,303,662	$	45,547	$	52,866	$	(3,288	)	$	945	$	340,725	$	1,740,457

Major Goods and Service Lines

Turnkey Projects	$	984,313	$	—	$	32,645	$	—		$	—	$	136,192	$	1,153,150
Maintenance and Support		319,349		45,547		20,221		(3,288	)		945		204,533		587,307

	$	1,303,662	$	45,547	$	52,866	$	(3,288	)	$	945	$	340,725	$	1,740,457

Timing of Revenue Recognition

Goods transferred over time	$	984,313	$	—	$	32,645	$	—		$	—	$	136,192	$	1,153,150

Services transferred over time		319,349		45,547		20,221		(3,288	)		945		204,533		587,307
	$	1,303,662	$	45,547	$	52,866	$	(3,288	)	$	945	$	340,725	$	1,740,457

For the Nine Months Ended September 30, 2022


Segments	Rail		Commercial			Government		Artificial Intelligence		Total
Primary Geographical Markets

North America	$	8,087,759	$	76,818		$	214,124	$	699,995	$	9,078,696

Major Goods and Service Lines

Turnkey Projects	$	5,885,477	$	(498	)	$	153,462	$	—	$	6,038,441
Maintenance and Support		2,202,282		77,316			60,662		465,223		2,805,483
Algorithms		—		—			—		234,772		234,772
	$	8,087,759	$	76,818		$	214,124	$	699,995	$	9,078,696

Timing of Revenue Recognition

Goods transferred over time	$	5,885,477	$	(498	)	$	153,462	$	—	$	6,038,441
Goods delivered at point in time		—		—			—		234,772		234,772
Services transferred over time		1,545,578		77,316			60,662		465,223		2,148,779
Services delivered at point in time		656,704		—			—		—		656,704
	$	8,087,759	$	76,818		$	214,124	$	699,995	$	9,078,696

For the Nine Months Ended September 30, 2021

Segments	Rail		Commercial		Government		Banking		IT Suppliers		Artificial Intelligence		Total
Primary Geographical Markets

North America	$	3,527,736	$	158,989	$	198,153	$	22,473	$	134,717	$	501,811	$	4,543,879

Major Goods and Service Lines

Turnkey Projects	$	2,311,530	$	—	$	137,490	$	1,537	$	—	$	—	$	2,450,557
Maintenance and Support		1,216,206		158,989		60,663		20,936		—		208,519		1,665,313
Data Center Auditing Services		—		—		—		—		131,537		—		131,537
Software License		—		—		—		—		3,180		—		3,180
Algorithms		—		—		—		—		—		293,292		293,292
	$	3,527,736	$	158,989	$	198,153	$	22,473	$	134,717	$	501,811	$	4,543,879

Timing of Revenue Recognition

Goods transferred over time	$	2,311,530	$	—	$	137,490	$	1,537	$	131,537	$	208,519		2,790,613
Services transferred over time		1,216,206		158,989		60,663		20,936		3,180		293,292		1,753,266
	$	3,527,736	$	158,989	$	198,153	$	22,473	$	134,717	$	501,811	$	4,543,879


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