Duos Technologies Group (DUOT) risk factors, FY2025 10-K

Risks Related to Our Company and Business

1. 01We are shifting our business to focus on data centers and digital infrastructure marketsNew
2. 02Our portfolio depends upon local economic conditions and is geographically concentrated in certain locationsNew
3. 03We lease the locations on which our data centers are located and the ability to retain these leases, and to find suitable locations for future deployment of data centers and negotiate leases and satisfy all other development issues for these new locations, could be a significant risk for our ongoing operationsNew
4. 04We are dependent upon third-party suppliers for power and other services, and we are vulnerable to service failures of our third-party suppliers and to price increases by such suppliersNew
5. 05We depend on third parties to provide network connectivity to the customers in our data centers, and any delays or disruptions in connectivity may adversely affect our business and results of operationsNew
6. 06The 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
7. 07We may be adversely affected by the effects of inflation and supply chain disruption
8. 08Our products and services may fail to keep pace with rapidly changing technology and evolving industry standards21% rewritten
9. 09The market opportunity for our products and services may not develop in the ways that we anticipate
10. 10Our revenues are dependent on general economic conditions and the willingness of enterprises to invest in technology
11. 11Our working capital profile may shift over time to require additional investment30% rewritten
12. 12Some of our competitors are larger and have greater financial and other resources than we do
13. 13We have a history of losses and our growth plans may lead to additional losses and negative operating cash flows in the future21% rewritten
14. 14We may be unable to protect our intellectual property, which could impair our competitive advantage, reduce our revenue, and increase our costs
15. 15We may be required to incur substantial expenses and divert management attention and resources in defending intellectual property litigation against us
16. 16We may incur substantial expenses and divert management resources in prosecuting others for their unauthorized use of our intellectual property rights
17. 17We 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
18. 18Due to our dependence on a limited number of customers, we are subject to a concentration of credit risk71% rewritten
19. 19Our business has been highly dependent on an Asset Management Agreement with New APR Energy
20. 20Changes 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. 21You may experience dilution of your ownership interest due to future issuances of our securities
2. 22Our 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
3. 23We may consider registering additional shares using our S3 shelf registration facility24% rewritten
4. 24We do not expect to pay dividends and investors should not buy our common stock expecting to receive dividends
5. 25Our operating results are likely to fluctuate from period to period
6. 26We are subject to the Florida anti-takeover provisions, which may prevent you from exercising a vote on business combinations, mergers or otherwise
7. 27An 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