NOTE 12 – SUBSEQUENT EVENTS

On April 1, 2018, the Company issued 2,122,000 non-qualified options with an exercise price of $1 and a 5-year term to fifteen employees and one independent director. Of these options, approximately 1,500,000 vests immediately with a further 500,000 vesting over the next two years.

On May 5, 2018, the Company was awarded a multi-million contract from CN, a leading Class-1 Transportation and Logistics company.  The award includes four (4) complete rail inspection portals and deployment of the Company’s first commercial thermal undercarriage inspection system which was recently beta-tested at the rail testing facility in Pueblo, Co.  The systems will be based on Duos Technologies’ proprietary Railcar Inspection Portal technology. This leading-edge technology has been in operational use both in the US and Mexico and combines several proprietary intelligent technologies and sub-systems into a turnkey system for both mechanical inspection and security.  The systems must be delivered by September 7, 2018.