This investment is earmarked for the construction and deployment of the company's first three EDCs, marking a significant milestone in the expansion of Duos' technological infrastructure.
The funding, secured through promissory notes, will enable Duos Edge AI, a subsidiary of Duos Technologies, to construct, deploy, and initiate operations for these EDCs in remote districts.
The locations will include schools, government buildings, and health facilities, which will enhance technological accessibility and operational efficiency in underserved areas. The first EDC is expected to be operational by late October, with the subsequent two units projected to be completed by November.
Doug Recker, president of Duos Edge AI said: "The availability of this funding will allow us to get to deployment and revenue production as forecasted and also paves the way for expected fast growth as we pursue the many opportunities available to us."
Chuck Ferry, CEO of Duos Technologies, echoed this optimism. He said: "I am pleased that we continue to have solid support from our legacy shareholders, both for equity and now debt," he stated. "I believe that this is just the beginning of a new phase of growth for Duos, and I look forward to reporting further progress at our upcoming shareholders conference call."
As detailed in a recent report, the $2.2 million deal is structured as debt maturing at the end of 2025, with an annual interest rate of 10%. The terms of the agreement do not require interim payments, allowing Duos Edge AI to allocate funds generated from the EDCs’ operations towards repayment.
This financial strategy underscores Duos Technologies' commitment to supporting Duos Edge AI's operations and exploring further debt funding proposals from other lenders to sustain and expand the subsidiary’s growth. The deployment of these EDCs is anticipated to bring significant revenue starting in the fourth quarter.
