Duos Technologies, through its operating subsidiary Duos Edge AI, a provider of adaptive, versatile, and streamlined Edge Data Center solutions tailored to meet evolving needs in any environment, has secured sufficient funding for the production of its first three EDCs.
Duos Edge AI entered into secured promissory notes for a total of $2.2 million with two institutional investors in the company.
The funding will be used for the construction, deployment and initial operations of EDCs in remote districts, including for schools, government, and health facilities.
The first EDC is expected to be in full production by late October, with the second and third units following closely and expected to be in production by November.
Doug Recker, president of Duos Edge AI, thanked the investors for their confidence in providing the initial funding to the new division.
“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,” said Recker.
Chuck Ferry, CEO of Duos, shared his enthusiasm for the new project. “I am pleased that we continue to have solid support from our legacy shareholders, both for equity and now debt,” he said.
“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 disclosed in a recent 8-K, the deal is for $2.2 million in debt, maturing at the end of 2025. The notes carry an interest charge of 10 percent per annum and there are no payments in the interim.
Duos Edge AI will reserve funds from revenues generated on these units for repayment purposes and the Company will hold any receipts from its ATM (“at the market”) facility to ensure that notes are repaid on time.
Duos will continue to support operations for Duos Edge AI and is currently reviewing potential ongoing debt funding proposals from other lenders as the subsidiary continues to expand.
