Press Release: Duos Technologies Reports Second Quarter 2026 Results

Dow Jones08-18 04:00

Q2 2026 Revenue Increases Nearly 30%, Driven by Initial Ramp in AI and Data Center Deployments

Over $100 Million in Growth Capital Secured Through Multiple Transactions

Company Reaffirms 2026 Guidance for 25 MW Deployed and Over $50 Million in Revenue

JACKSONVILLE, Fla., Aug. 17, 2026 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. ("Duos" or the "Company") (Nasdaq: DUOT), a leading provider of adaptive, modular, and scalable Edge Data Center solutions, reported financial results for the second quarter ("Q2 2026") ended June 30, 2026.

Second Quarter 2026 and Recent Operational Highlights

   -- Signed five-year, 55 MW hosting agreements with Axe Compute valued at 
      more than $500 million, representing a significant commercial milestone 
      in the Company's strategy to develop and operate high-density AI 
      infrastructure 
 
   -- Entered into an exclusive term sheet with 0Lat LLC for a proposed 
      structured lease across a 15-site, 225-cabinet Edge Data Center portfolio 
      in Texas and Georgia, initiating a 90-day exclusivity and confirmatory 
      diligence period 
 
   -- Completed the sale of the Company's wholly owned rail technology 
      subsidiary, Duos Technologies, Inc. The divestiture marks the completion 
      of a broader strategic repositioning and enables the Company to fully 
      concentrate its resources on its Edge Data Center and AI infrastructure 
      businesses through Duos Edge AI, Inc. and Duos Technology Solutions, Inc. 
 
   -- Secured $111 million in contracted revenue with an investment-grade 
      hyperscaler to provide 10 MW of critical IT-load capacity for five years 
      at its Columbus, Georgia data center campus 
 
   -- The Company now has 25 MW contracted with all 25 MW planned for 
      deployment in 2026, demonstrating accelerating demand and an ability to 
      rapidly design, manufacture, and deploy modular infrastructure in 
      underserved Tier 3 and Tier 4 markets 
 
   -- Received $50.4 million in proceeds from the sale of substantially all the 
      assets of New APR Energy, LLC, in which the Company held a 5% minority 
      stake of the parent company 
 
   -- Closed $55 million registered direct offering with a single large 
      institutional investor, providing additional financial support for the 
      Company's growth plans, including  the acquisition of its Columbus 
      facility and related infrastructure investments to fulfill contracted 
      customer deployments and expand the campus 
 
   -- Hosted six (6) open houses with additional events and grand openings 
      planned, showcasing the continued expansion of the Company's EDC pipeline 
      to support increasing demand for AI inference, training, and 
      high-performance computing workloads 
 
   -- Added to the Russell 2000$(R)$ Index as part of the 2026 Russell indexes 
      annual reconstitution 

Second Quarter 2026 Financial Results

It should be noted that the following Financial Results represent the consolidation of the Company with its subsidiaries Duos Edge AI, Inc., Duos Technology Solutions, Inc. and Duos Energy Corporation ("Duos Energy").

Total revenues for Q2 2026 increased 30% to $6.18 million compared to $4.77 million in the second quarter of 2025 ("Q2 2025"). Total revenue for Q2 2026 represents an aggregate of approximately $3.23 million of Technology Solutions revenue, $2.91 million of Services and Consulting revenue, and approximately $.03 million of Hosting revenue. The increase in revenue was driven primarily by the increase in Technology Solutions revenue, which was partially offset by a decrease in Services and Consulting revenue in connection with the Company's continued reduction in the scope of services provided under the Duos Energy Asset Management Agreement (the "AMA") and the sale by New APR of substantially all of its assets in May 2026.

The Technology Solutions business unit provides manufacturer-agnostic infrastructure sourcing, integration, and value-added supply chain services supporting data center, AI, and enterprise deployments. The Company expects services revenue from both its hosting and technology solutions to increase throughout 2026. This growth is expected to be driven by the deployment of additional edge data centers coming online as well as expanding Technology Solutions revenue tied to growth in the data center market.

Cost of revenues for Q2 2026 decreased 9% to $2.73 million compared to $2.99 million for Q2 2025. The decrease was primarily due to reduced costs associated with the previously mentioned AMA and the wind-down of AMA-related activities.

Gross margin for Q2 2026 increased 94% to $3.45 million compared to $1.78 million for Q2 2025. Gross margin improved primarily due to the significantly reduced cost of revenues associated with the AMA and the growing contribution of the Technology Solutions business.

Operating expenses for Q2 2026 increased 2% to $3.40 million compared to $3.32 million for Q2 2025. The increase in expenses was attributable to increases in sales and marketing expenses as additional resources were deployed to support business development for the Edge Data Center and Technology Solutions businesses as well as general and administration expenses.

Net operating income for Q2 2026 totaled $0.05 million compared to net operating loss of $1.54 million for Q2 2025, our first positive operating quarter as a data center infrastructure company. The decrease in the loss was primarily driven by the favorable impact of increased Technology Solutions revenue, accelerated recognition of the remaining AMA-related deferred revenue, and improved gross margins.

Net income before taxes for Q2 2026 totaled $53.64 million compared to net loss of $1.62 million for Q2 2025. The increase in net income was primarily attributable to the gain on sale of investments previously noted in connection with the sale of substantially all of New APR's assets. Basic and diluted net income per common share was $1.61 and a loss of $0.14 and $1.37 and a loss of $0.14 for the three months ended June 30, 2026 and 2025, respectively.

Cash and cash equivalents at June 30, 2026 totaled $112.31 million compared to $15.47 million at December 31, 2025. In addition, the Company had over $15.90 million in receivables and contract assets for a total of approximately $128.21 million in cash and expected short-term liquidity.

Six Month 2026 Financial Results

Total revenues decreased 4% to $8.32 million from $8.68 million in the same period last year. Total revenue for the first six months of 2026 represents an aggregate of approximately $3.79 million of Technology Solutions revenue, $4.46 million of Services and Consulting revenue, and approximately $.06 million of Hosting revenue. The decrease in total revenues was primarily driven by the previously noted decrease in Services and Consulting revenue in connection with the Company's continued reduction in the scope of services provided under the AMA and the sale by New APR of substantially all of its assets in May 2026.

Cost of revenues decreased 32% to $3.82 million from $5.65 million in the same period last year. The decrease in cost of revenues was primarily due to reduced costs associated with the previously mentioned AMA and the wind-down of AMA-related activities.

Gross margin increased 48% to $4.50 million from $3.03 million in the same period last year. Gross margin improved primarily due to the significantly reduced cost of revenues associated with the AMA and the growing contribution of the Technology Solutions business.

Operating expenses increased 49% to $7.63 million from $5.11 million in the same period last year. The increase in expenses was largely attributable to increases in sales and marketing expenses as additional resources were deployed to support business development for the Edge Data Center and Technology Solutions businesses as well as general and administration expenses.

Net operating loss totaled $3.13 million compared to net operating loss of $2.07 million in the same period last year. The increase in loss from operations was primarily driven by higher operating expenses, offset by growth in Technology Solutions revenue and accelerated recognition of the remaining AMA-related deferred revenue.

Net income before taxes totaled $50.60 million compared to net loss of $2.44 million in the same period last year. The increase in net income was primarily attributable to the gain on sale of investments previously noted in connection with the sale of substantially all of New APR's assets. Basic and diluted net income per common share was $1.70 and a loss of $0.21 and $1.41 and a loss of $0.21 for the six months ended June 30, 2026 and 2025, respectively.

Financial Outlook

At the end of the second quarter, the Company's bookings represented approximately $43.5 million in revenue, of which all is expected to be recognized during the year, including contracted backlog and near-term anticipated awards. In addition, approximately $1.1 million of contracted Technology Solutions deferred revenue recorded in 2025 will be recorded as revenue in 2026, further supporting near-term performance. Duos Technology Solutions continues to add new customers and has approximately $28 million in backlog so far in 2026.

Based on these committed contracts and near-term pending orders that are already performing or scheduled to be executed throughout the course of 2026, the Company is reconfirming its expectation for total revenue in 2026 to exceed $50 million. A significant portion of this revenue is anticipated to be recognized in the second half of the year, aligned with project timing and infrastructure deployments, supporting continued operating leverage and progression toward the Company growth strategy.

Adjusted EBITDA for the second quarter of 2026 was $0.5 million. The Company did not report adjusted EBITDA in the prior-year period. Adjusted EBITDA was positive for the quarter, and the Company expects profitability to continue to improve as revenue ramps over the coming quarters and anticipates achieving positive adjusted EBITDA for the full year 2026.

Management Commentary

"In the second quarter and over the last several weeks, we have made tremendous progress both in operational execution and the fundamental repositioning of our business as a standalone AI infrastructure provider, " said Duos CEO Doug Recker. "Financially, we began to see the early stages of the substantial performance ramp we expect to build over the course of this year, highlighted by a 30% increase in revenue and a material improvement in profitability. We also secured over $100 million in growth capital through two major transactions: a $55 million direct investment with a single institutional investor and an additional $50.4 million in proceeds resulting from New APR's sale of substantially all its assets.

"Operationally, we recently announced the successful divestiture of our legacy rail operations, which will now enable us to fully concentrate our resources on the Edge Data Center and AI infrastructure businesses. We also agreed to terms on a new $111 million, 10 MW contract with an investment-grade hyperscaler to provide critical IT-load capacity, adding to our already-substantial backlog and supporting our reaffirmed outlook to provide 25 MW of compute and generate north of $50 million in revenue by the end of this year."

Conference Call

The Company's management will host a conference call on Monday, August 17, 2026, at 4:30 p.m. Eastern Time to discuss these results, followed by a question-and-answer period.

 
 Date:                         Monday, August 17, 2026 
 Time:             4:30 p.m. Eastern time (1:30 p.m. Pacific time) 
 U.S. dial-in:                                     +1 877-407-3088 
 International:                                Dial-In Matrix Link 
 Confirmation:                                            13761911 
 
 

If you experience any difficulty accessing the call or wish to submit questions in advance, please contact the Company at DUOT@duostech.com. An audio replay of the call will also be available in the Investor Relations section of the Company's website following the event.

For additional information about the Company, please visit: www.duostechnologies.com | www.duosedge.ai.

About Duos Technologies Group, Inc.

Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, is focused on providing and managing modular data center colocation facilities and infrastructure solutions. Through its wholly owned subsidiaries Duos Edge AI, Inc., and Duos Technology Solutions, Inc., the Company delivers high function computing infrastructure at the "Edge" designed to support high power computing facilities suitable for AI and Enterprise Computing. Duos is strategically focused on scaling its edge data center platforms in conjunction with its data center infrastructure solutions business. It provides manufacturer-agnostic sourcing and fulfillment services to support efficient deployment of data centers and IT environments. Together, these platforms position the Company to address the growing demand for distributed digital infrastructure, while continuing to support legacy applications in Tier 3 and Tier 4 markets.

For more information, visit www.duostech.com and www.duosedge.ai.

Forward- Looking Statements

This news release includes forward-looking statements regarding the Company's financial results and estimates and business prospects that involve substantial risks and uncertainties that could cause actual results to differ materially. Forward-looking statements relate to future events and typically address the Company's expected future business and financial performance. The forward-looking statements in this news release relate to, among other things, information regarding anticipated timing for the installation, development and delivery dates of our systems; anticipated entry into additional contracts; anticipated effects of macro-economic factors (including effects relating to supply chain disruptions and inflation); timing with respect to revenue recognition; trends in the rate at which our costs increase relative to increases in our revenue; anticipated reductions in costs due to changes in the Company's organizational structure; potential increases in revenue, including increases in recurring revenue; potential changes in gross margin (including the timing thereof); statements regarding our backlog and potential revenues deriving therefrom; and statements about future profitability and potential growth of the Company. Words such as "believe," "expect," "anticipate," "should," "plan," "aim," "will," "may, " "should," "could," "intend," "estimate," "project," "forecast," "target," "potential" and other words and terms of similar meaning, typically identify such forward-looking statements. Forward-looking statements involve risks and uncertainties and there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the Company's ability to generate sufficient cash to expand operations, the competitive environment generally and in the Company's specific market areas, changes in technology, the availability of and the terms of financing, changes in costs and availability of goods and services, economic conditions in general and in the Company's specific market areas, changes in federal, state and/or local government laws and regulations potentially affecting the use of the Company's technology, changes in operating strategy or development plans and the ability to attract and retain qualified personnel. The Company cautions that the foregoing list of risks, uncertainties and factors is not exclusive. Additional information concerning these and other risk factors is contained in the Company's most recently filed Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other filings filed by the Company with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website, http://www.sec.gov. The Company believes its plans, intentions and expectations reflected in or suggested by these forward-looking statements are based on reasonable assumptions. No assurance, however, can be given that the Company will achieve or realize these plans, intentions or expectations. Indeed, it is likely that some of the Company's assumptions may prove to be incorrect. The Company's actual results and financial position may vary from those projected or implied in the forward-looking statements and the variances may be material. Each forward-looking statement speaks only as of the date of the particular statement. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All subsequent written and oral forward-looking statements concerning the Company or other matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Contacts

Investor Relations

Tom Colton and Greg Bradbury

Gateway Group, Inc.

+1 949-574-3860 | DUOT@duostech.com

 
 
              DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES 
                   CONSOLIDATED STATEMENTS OF OPERATIONS 
                                (Unaudited) 
 
                   For the Three Months Ended    For the Six Months Ended 
                            June 30,                     June 30, 
                   --------------------------  ---------------------------- 
                       2026          2025          2026          2025 
                    ----------    ----------    ----------    ---------- 
 
REVENUES: 
 Technology 
  solutions          3,231,544   $         -     3,793,998   $         - 
 Services and 
  consulting - 
  related 
  parties            2,911,330     4,760,403     4,463,902     8,675,153 
 Hosting Revenue        32,549         8,000        62,824         8,000 
                    ----------    ----------    ----------    ---------- 
 
 Total Revenues      6,175,423     4,768,403     8,320,724     8,683,153 
                    ----------    ----------    ----------    ---------- 
 
COST OF 
REVENUES: 
 Technology 
  solutions          2,404,108             -     2,910,678             - 
 Services and 
  consulting - 
  related 
  parties              226,255     2,976,469       770,112     5,634,537 
 Hosting                98,964        15,343       138,397        15,343 
                    ----------    ----------    ----------    ---------- 
 
 Total Cost of 
  Revenues           2,729,327     2,991,812     3,819,187     5,649,880 
                    ----------    ----------    ----------    ---------- 
 
GROSS MARGIN         3,446,096     1,776,591     4,501,537     3,033,273 
                    ----------    ----------    ----------    ---------- 
 
OPERATING 
EXPENSES: 
 Sales and 
  marketing            253,515        32,835       742,362        81,296 
 Research and 
 development                 -             -             -             - 
 General and 
  administration     3,143,488     3,283,938     6,884,358     5,024,723 
                    ----------    ----------    ----------    ---------- 
 
 Total Operating 
  Expenses           3,397,003     3,316,773     7,626,720     5,106,020 
                    ----------    ----------    ----------    ---------- 
 
INCOME (LOSS) 
 FROM 
 OPERATIONS             49,093    (1,540,182)   (3,125,183)   (2,072,747) 
 
OTHER INCOME 
(EXPENSES): 
Interest expense          (121)      (87,348)         (121)     (406,660) 
   Interest 
    income on 
    lease 
    receivable           3,325         1,247         6,765         1,247 
   Interest 
    income             413,490        10,629       497,049        43,357 
   Other income, 
    net                      -        (1,875)            -        (2,061) 
   Gain on sale 
    of 
    investments     53,173,803             -    53,226,105             - 
                    ----------    ----------    ----------    ---------- 
 
 Total Other 
  Income 
  (Expenses), 
  net               53,590,497       (77,348)   53,729,798      (364,118) 
                    ----------    ----------    ----------    ---------- 
 
INCOME (LOSS) 
 FROM CONTINUING 
 OPERATIONS 
 BEFORE INCOME 
 TAXES             $53,639,590   $(1,617,530)  $50,604,615   $(2,436,865) 
                    ==========    ==========    ==========    ========== 
 
   Income tax 
    expense        $(4,984,170)  $         -   $(4,984,170)  $         - 
                    ==========    ==========    ==========    ========== 
 
NET INCOME 
 (LOSS) FROM 
 CONTINUING 
 OPERATIONS NET 
 OF TAX            $48,655,420   $(1,617,530)  $45,620,445   $(2,436,865) 
                    ==========    ==========    ==========    ========== 
 
NET INCOME 
 (LOSS) FROM 
 DISCONTINUED 
 OPERATIONS NET 
 OF TAX            $  (810,990)  $(1,900,502)  $(1,268,260)  $(3,160,829) 
                    ==========    ==========    ==========    ========== 
 
NET INCOME 
 (LOSS)            $47,844,430   $(3,518,032)  $44,352,185   $(5,597,695) 
                    ==========    ==========    ==========    ========== 
 
Basic Net Income 
 (Loss) Per 
 Share From 
 Continuing 
 Operations        $      1.61   $     (0.14)  $      1.70   $     (0.21) 
                    ==========    ==========    ==========    ========== 
Basic Net Income 
 (Loss) Per 
 Share From 
 Discontinued 
 Operations        $     (0.03)  $     (0.16)  $     (0.05)  $     (0.27) 
                    ==========    ==========    ==========    ========== 
Basic Net Income 
 (Loss) Per 
 Share             $      1.58   $     (0.30)  $      1.65   $     (0.48) 
                    ==========    ==========    ==========    ========== 
 
Diluted Net 
 Income (Loss) 
 Per Share From 
 Continuing 
 Operations        $      1.37   $     (0.14)  $      1.41   $     (0.21) 
                    ==========    ==========    ==========    ========== 
Diluted Net 
 Income (Loss) 
 Per Share From 
 Discontinued 
 Operations        $     (0.02)  $     (0.16)  $     (0.04)  $     (0.27) 
                    ==========    ==========    ==========    ========== 
Diluted Net 
 Income (Loss) 
 Per Share         $      1.35   $     (0.30)  $      1.37   $     (0.48) 
                    ==========    ==========    ==========    ========== 
 
 
Weighted Average 
 Shares-Basic       30,143,928    11,847,115    26,899,063    11,619,714 
                    ==========    ==========    ==========    ========== 
Weighted Average 
 Shares-Diluted     35,538,098    11,847,115    32,258,735    11,619,714 
                    ==========    ==========    ==========    ========== 
 
 
 
 
          DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES 
                   CONSOLIDATED BALANCE SHEETS 
 
                                      June 30,      December 31, 
                                    -------------  --------------- 
                                        2026           2025 
                                     (unaudited) 
             ASSETS 
CURRENT ASSETS: 
 Cash                               $112,308,012   $ 15,472,229 
 Accounts receivable, net              3,064,611        621,927 
 Accounts receivable, net - 
  related parties                        222,923      5,304,231 
 Holdback receivable - related 
  parties                             10,013,872              - 
 Lease receivable                         36,307         35,361 
 Contract assets                       2,558,125              - 
 Inventory                                50,438              2 
 Prepaid expenses and other 
  current assets                       1,461,767        487,660 
                                     -----------    ----------- 
 
 Total Current Assets                129,716,055     21,921,410 
                                     -----------    ----------- 
 
 Deposits on equipment                68,793,810              - 
 Deposit on real estate                5,800,000              - 
 Lease receivable, less current 
  portion                                209,236        227,629 
 Property and equipment, net          29,726,514     27,311,933 
 Operating lease right of use 
  asset - Land, net                      600,506        357,561 
 
OTHER ASSETS: 
 Equity Investment - Sawgrass APR 
  Holdings LLC                                 -      7,233,000 
 Patents and trademarks, net              14,601         15,111 
                                     -----------    ----------- 
 Total Other Assets                       14,601      7,248,111 
                                     -----------    ----------- 
 
 Assets held for sale                  6,426,222      6,342,772 
                                     -----------    ----------- 
 
TOTAL ASSETS                        $241,286,943   $ 63,409,415 
                                     ===========    =========== 
 
  LIABILITIES AND STOCKHOLDERS' 
             EQUITY 
 
CURRENT LIABILITIES: 
 Accounts payable                   $  1,445,855   $  4,592,930 
 Notes payable - financing 
  agreements                             326,617              - 
 Accrued expenses                        760,486        185,194 
 Income taxes payable                  4,984,170              - 
 Operating lease obligation- Land 
  - current portion                      103,224         53,000 
 Contract liabilities, current - 
  Technology Solutions                 2,477,952      1,132,164 
 Contract liabilities, current - 
  related parties                              -      3,616,500 
 
 Total Current Liabilities            10,098,304      9,579,788 
 
 Contract liabilities, less 
  current portion                     18,770,228              - 
 Operating lease obligation - 
  Land, less current portion             522,801        311,457 
                                     -----------    ----------- 
 
 Liabilities held for sale             4,490,799      4,965,605 
                                     -----------    ----------- 
 
 Total Liabilities                    33,882,132     14,856,849 
                                     -----------    ----------- 
 
Commitments and Contingencies 
(Note 13) 
 
STOCKHOLDERS' EQUITY: 
 Preferred stock: $0.001 par value, 10,000,000 
 authorized, 9,441,000 shares available to be 
 designated 
   Series A redeemable convertible 
   preferred stock, $10 stated 
   value per share,                            -              - 
    500,000 shares designated; 0 and 0 issued and outstanding 
     at June 30, 2026 and December 31, 2025, respectively, 
    convertible into common stock 
    at $6.30 per share 
   Series B convertible preferred 
   stock, $1,000 stated value per 
   share,                                      -              - 
    15,000 shares designated; 0 
    and 0 issued and outstanding 
    at June 30, 2026 
    and December 31, 2025, respectively, 
    convertible into common stock at $7 per 
    share 
   Series C convertible preferred 
   stock, $1,000 stated value per 
   share,                                      -              - 
    5,000 shares designated; 0 
    and 0 issued 
    and outstanding at June 30, 
    2026 and December 31, 2025, 
    respectively, 
    convertible into common stock 
    at $5.50 per share 
   Series D convertible preferred 
    stock, $1,000 stated value per 
    share,                                     1              1 
    4,000 shares designated; 999 
    and 999 issued 
    and outstanding at June 30, 
    2026 and December 31, 2025, 
    respectively, 
    convertible into common stock 
    at $3.00 per share 
   Series E convertible preferred 
   stock, $1,000 stated value per 
   share, 
    30,000 shares designated; 
    12,500 and 12,500 issued 
    and outstanding at June 30, 
     2026 and December 31, 2025, 
     respectively,                            13             13 
    convertible into common stock 
    at $2.61 per share 
   Series F convertible preferred 
   stock, $1,000 stated value per 
   share, 
    5,000 shares designated; 0 
    and 0 issued 
    and outstanding at June 30, 
    2026 and December 31, 2025, 
    respectively,                              -              - 
    convertible into common stock 
    at $6.20 per share 
 
 Common stock: $0.001 par value; 
 500,000,000 shares authorized, 
    31,273,823 and 20,449,462 
     shares issued, 31,272,499 and 
     20,448,138                           31,275         20,449 
    shares outstanding at June 
    30, 2026 and December 31, 
    2025, respectively 
 Additional paid-in-capital          247,381,829    132,892,595 
 Accumulated deficit                 (39,850,855)   (84,203,040) 
                                     -----------    ----------- 
 Sub-total                           207,562,263     48,710,018 
 Less: Treasury stock (1,324 
 shares of common stock 
    at June 30, 2026 and December 
     31, 2025)                          (157,452)      (157,452) 
                                     -----------    ----------- 
Total Stockholders' Equity           207,404,811     48,552,566 
                                     -----------    ----------- 
 
Total Liabilities and 
 Stockholders' Equity               $241,286,943   $ 63,409,415 
                                     ===========    =========== 
 
 
 
 
            DUOS TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES 
                CONSOLIDATED STATEMENTS OF CASH FLOWS 
                             (Unaudited) 
 
                                           For the Six Months Ended 
                                                   June 30, 
                                         ----------------------------- 
                                             2026           2025 
 
Cash from operating activities: 
Net income (loss)                        $ 44,352,183   $(5,597,694) 
Adjustments to reconcile net loss to 
net cash used in operating activities: 
Depreciation and amortization                  96,249        15,410 
Gain on sale on investments               (53,226,105)            - 
Stock based compensation                    1,752,332     2,133,933 
Stock issued for services                     208,750        90,000 
Amortization of debt discount related 
 to warrant liabilities                             -       326,743 
Amortization of right of use asset - 
 land                                           9,441             - 
Amortization of lease right of use 
 asset - Edge Data Centers                          -       150,821 
Provision for credit losses, accounts 
 receivable                                    40,561             - 
Changes in assets and liabilities: 
  Accounts receivable                      (2,507,996)            - 
  Accounts receivable-related parties       5,081,308      (952,898) 
  Lease receivable                             17,447         2,789 
  Contract assets                          (2,558,125)            - 
  Inventory                                   (50,436)            - 
  Prepaid expenses and other current 
   assets                                    (220,791)      200,451 
  Accounts payable                         (3,147,075)      (80,496) 
  Accrued expenses                          5,559,462       181,437 
  Operating lease obligation - land             3,501             - 
  Financing lease obligations - Edge 
   Data Centers                                     -       (12,359) 
   Contract liabilities, Technology 
    solutions                               1,345,788             - 
  Contract liabilities, related parties    (3,616,500)   (4,308,250) 
Contract liabilities, less current 
 portion                                   18,770,228             - 
                                          -----------    ---------- 
 
Net cash provided by (used in) 
 operating activities - continuing 
 operations                                11,910,222    (7,850,113) 
Net cash used in operating activities - 
 discontinued operations                     (549,458)      (25,624) 
Net cash provided by (used in) 
 operating activities                      11,360,764    (7,875,737) 
                                          -----------    ---------- 
 
Cash flows from investing activities: 
    Purchase of patents/trademarks 
   Deposits on equipment                  (68,793,810)            - 
  Proceeds from sale of investments        50,392,931             - 
   Purchase of Marketable Securities      (29,693,638)            - 
   Sale of Marketable Securities           29,745,940             - 
   Deposit on real estate                  (5,800,000)            - 
   Purchase of property and equipment      (2,510,721)   (1,363,560) 
                                          -----------    ---------- 
 
Net cash used in investing activities - 
 continuing operations                    (26,659,298)   (1,363,560) 
Net cash used in investing activities - 
 discontinued operations                      (15,087)      (24,482) 
Net cash used in investing activities     (26,674,385)   (1,388,042) 
                                          -----------    ---------- 
 
Cash flows from financing activities: 
  Repayments on financing agreements         (389,565)     (274,965) 
  Repayments of notes payable, related 
   parties                                          -    (1,000,000) 
  Proceeds from common stock issued       120,096,195     5,692,579 
  Proceeds from exercise of stock 
   options                                    374,326       144,777 
  Stock issuance costs                     (7,983,869)     (205,238) 
  Proceeds from shares issued under 
   Employee Stock Purchase Plan                52,317       114,724 
                                          -----------    ---------- 
 
Net cash provided by financing 
 activities - continuing operations       112,149,404     4,471,877 
 
Net increase (decrease) in cash            96,835,783    (4,767,419) 
Cash, beginning of period                  15,472,229     6,266,296 
                                          -----------    ---------- 
Cash, end of period                      $112,308,012   $ 1,498,877 
                                          -----------    ---------- 
 
Supplemental Disclosure of Cash Flow 
Information: 
--------------------------------------- 
Interest paid                            $          -   $     3,865 
                                          -----------    ---------- 
Taxes paid                               $          -   $    19,733 
                                          ===========    ========== 
 
Supplemental Non-Cash Investing and 
Financing Activities: 
--------------------------------------- 
Notes issued for financing of insurance 
 premiums                                $    671,834   $   477,727 
                                          -----------    ---------- 
Transfer of inventory to property and 
 equipment                               $          -   $    49,609 
                                          -----------    ---------- 
Subscription receivable                  $          -   $    98,235 
                                          -----------    ---------- 
Transfer of property and equipment to 
 lease receivable                        $          -   $   282,772 
                                          -----------    ---------- 
Non-cash financing activity: Warrants 
 issued as part of equity raise          $  2,305,016   $         - 
                                          -----------    ---------- 
Conversion of Series E Preferred Stock 
 to common stock                         $          -   $         1 
                                          -----------    ---------- 
Initial ROU asset and liability          $    256,765   $         - 
                                          -----------    -- 

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