Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.25.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12 – SEGMENT REPORTING

 

Beginning on January 1, 2025, the Company operates in three 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, herein known as the “Data Center Hosting & Related Services” segment, and (3) 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 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.

 

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, 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 nine months ended September 30, 2025 and 2024 was as follows:

 

Nine Months Ended September 30, 2025

 Schedule of business segments                              
    Technologies     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 3,705,551     $ 32,000     $ 13,827,958     $ —     $ 17,565,509  
                                         
Cost of revenues (including $39,142 of depreciation)     3,091,784       49,536       9,075,172       —       12,216,492  
Operating Expenses (excluding depreciation and amortization)     5,435,074       1,322,711       —       —       6,757,785  
Depreciation and amortization     1,923,056       144       —       —       1,923,200  
Stock Compensation     —       —       —       3,014,323       3,014,323  
Income (loss) from operations     (6,744,363 )     (1,340,391 )     4,752,786       (3,014,323 )     (6,346,291 )
Interest Expense     (3,264 )     (435,996 )     —       —       (439,260 )
Gain (Loss) on extinguishment of debt     —       (95,718 )     —       —       (95,718 )
Other Income     33,294       22,090       4,463       183,474       243,321  
Income (loss) before provision for income taxes     (6,714,333 )     (1,850,015 )     4,757,249       (2,830,849 )     (6,637,948 )
Provision for income tax     —       —       —       —       —  
Net income (loss)   $ (6,714,333 )   $ (1,850,015 )   $ 4,757,249     $ (2,830,849 )   $ (6,637,948 )

  

Nine Months Ended September 30, 2024

                               
    Technologies     Data Center Hosting & Related Services     Asset Management Services     Corporate and Unallocated     Consolidated  
Net revenues   $ 5,820,086     $ —     $ —     $ —     $ 5,820,086  
                                         
Cost of revenues     5,020,919       —       —       —       5,020,919  
Operating Expenses (excluding depreciation and amortization)     6,782,685       214,684       —       —       6,997,369  
Depreciation and amortization     1,472,924       41       —       —       1,472,965  
Stock Compensation     —       —       —       226,575       226,575  
Income (loss) from operations     (7,456,442 )     (214,725 )     —       (226,575 )     (7,897,742 )
Interest Expense     (1,595 )     (116,396 )     —       —       (117,991 )
Change in fair value of warrant liabilities     —       —       —       245,980       245,980  
Gain (Loss) on extinguishment of warrant liabilities     —       —       —       379,626       379,626  
Other Income     28,801       3,183       —       —       31,984  
Income (loss) before provision for income taxes     (7,429,236 )     (327,938 )     —       399,031       (7,358,143 )
Provision for income tax     —       —       —       —       —  
Net income (loss)   $ (7,429,236 )   $ (327,938 )   $ —     $ 399,031     $ (7,358,143 )

 

Total assets by segment on September 30, 2025 and December 31, 2024:

             
    September 30,
2025		     December 31,
2024		  
Technologies   $ 10,502,420     $ 11,819,377  
Data Center Hosting & Related Services     12,065,715       4,131,189  
Asset Management Services     9,330,833       7,530,274  
Corporate and Unallocated     37,895,312       11,477,837  
    $ 69,794,280     $ 34,958,677  

  

All assets are located in the United States.