Duos Technologies Group (DUOT) risk factors, FY2024 10-K

Risks Related to Our Company and Business

1. 01The nature of the technology management platforms utilized by us are complex and highly integrated, and if we fail to successfully manage releases or integrate new solutions, it could harm our revenues, operating income, and reputation
2. 02The technology platforms developed and designed by us accommodate integrated applications that include our own developed technology and third-party technology, thereby substantially increasing their functionality
3. 03We may be adversely affected by the effects of inflation and supply chain disruption
4. 04Our products and services may fail to keep pace with rapidly changing technology and evolving industry standards
5. 05The market opportunity for our products and services may not develop in the ways that we anticipate
6. 06Our revenues are dependent on general economic conditions and the willingness of enterprises to invest in technology
7. 07Our working capital profile may shift over time to require additional investment
8. 08Some of our competitors are larger and have greater financial and other resources than we do
9. 09We have a history of losses and our growth plans may lead to additional losses and negative operating cash flows in the future
10. 10We may be unable to protect our intellectual property, which could impair our competitive advantage, reduce our revenue, and increase our costs
11. 11We may be required to incur substantial expenses and divert management attention and resources in defending intellectual property litigation against us
12. 12We may incur substantial expenses and divert management resources in prosecuting others for their unauthorized use of our intellectual property rights
13. 13We depend on key personnel who would be difficult to replace, and our business plan will likely be harmed if we lose their services or cannot hire additional qualified personnel
14. 14Due to our dependence on a limited number of customers, we are subject to a concentration of credit risk
15. 15Our anticipated business growth is highly dependent on an Asset Management Agreement with New APR Energy
16. 16Changes in the Availability of Government Financing May Adversely Affect Our Customer’s Ability to Enter Into Major Capital Projects, such as Data Centers

Risks Related to Our Common Stock

1. 17There is currently not an active liquid trading market for the Company’s common stock
2. 18You may experience dilution of your ownership interest due to future issuances of our securities
3. 19Our Board of Directors may issue and fix the terms of shares of our Preferred Stock without stockholder approval, which could adversely affect the voting power of holders of our Common Stock or any change in control of our Company
4. 20We recently completed an “At the Market” (ATM) offering and may consider registering additional shares using our S3 shelf registration facility
5. 21We do not expect to pay dividends and investors should not buy our common stock expecting to receive dividends
6. 22Our operating results are likely to fluctuate from period to period
7. 23We are subject to the Florida anti-takeover provisions, which may prevent you from exercising a vote on business combinations, mergers or otherwise
8. 24An interested shareholder is defined as a person who together with affiliates and associates beneficially owns more than 15% of a corporation’s outstanding voting shares. We have not made an election in our amended Articles of Incorporation to opt out of Section 607.0901