Good afternoon. Welcome to Duos Technologies' Second Quarter 2021 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry and CFO, Adrian Goldfarb. Following their remarks, we will open the call for your questions. Then before we conclude today's call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. Now, I'd like to turn the call over to Duos' CEO, Chuck Ferry. Sir, please proceed.

Welcome everyone and thank you for joining us. Earlier today, we issued a press release announcing our financial results for the second quarter 2021, as well as other operational highlights. A copy of the press release is available in the Investor Relations section of our website. I encourage all of our listeners to view that release as well as our forthcoming 10-Q filing with the SEC to better understand some of the details we'll be discussing during our call. Now, let's get started. During the second quarter, we made continued progress in our ongoing transition to becoming a profitable high growth and self-sustaining business. That said, we did encounter some challenges in the form of short-term industry and operational headwinds. Within procurement, we are experiencing delays in receiving necessary components for our railcar inspection portals, including advanced cameras and high-speed servers, which are critical to our inspection portals. In response, we are taking certain steps to mitigate some of these issues such as obtaining long lead items in advance of formal notice to proceed in order to reduce the overall deployment time for technology systems. Additionally, within our artificial intelligence business, we've made some staffing changes to our internal team to meet the demand for more comprehensive algorithm development, which has slow deployment times, but in the long-term we'll deploy the more advanced systems which will be necessary to support our revenue growth. To be clear, these challenges have impacted our financial results during the period that are not expected to affect our long-term growth plans. We are continuing to make further investments in both infrastructure and support to reinforce our ability to meet the order flow we're anticipating with the next few quarters and beyond. We're actively expanding our rail pipeline and have made encouraging progress in getting key contracts closer to the finish line, which we expect to materialize in the second half of the year. We were also continuing to move forward with product upgrades, revamped testing protocols, enhanced internal communications, quality personnel onboarding and improved internal financial reporting and forecasting results. Today marched nearly 12 months since I initially came on board in the September of 2020, a lot has changed in that time. And we have a lot to -- a lot of things about which we can be proud, but there's still much work still to be done. Not every quarter is going to be smooth, but we remain confident that over the long-term we we're on the right path. Now, before I provide further updates, I'd like to turn the call over to our CFO, Adrian Goldfarb who will walk us through the financial results for the quarter. Adrian?

Thank you, Chuck. My comments today will be broadly focused on our results for the second quarter and six months ended June 30th, 2021. I want to remind everyone about income statement presentation changes that we implemented at the beginning of the year. As we did in Q1, we will be presenting two components to revenue; technology systems, which cause revenue from turnkey engineered systems, such as that railcar inspection portal and services and consulting, which primarily records recurring revenues from maintenance and support business, plus any consulting services that are on undertake. Further, we now record all costs of delivering those revenues, including all the staffing related to those operations in production mode, plus associated overhead. Now, we are taking some time to revamp the AI algorithms and our overall product portfolio. Our average revenue for an installation is now higher as a result of meeting the demand from our customers, increased function and capabilities, and will have a positive effect on revenue going forward. Now turning to the numbers. Total revenue for the second quarter decreased 67% to $649,000 compared to $1.98 million in the equivalent quarter in 2020. This was the aggregate of about a $100,000 for technology systems and $548,000 in recurring revenue services. Although, the decrease in total revenue was the result of a delay in receiving notices to proceed for anticipated new contracts earlier in the year, our services business increased by over 40% and that trend is expected to continue. Total revenue for the six months ended June 30th, 2021 decreased 6% to $2.8 million from $2.97 million in the same period last year. A small decrease in total revenue compared to the equivalent period in 2020 is similar to the slowdown in overall business bookings during the first six months of 2020.…

Thank you, Adrian. For the remainder of my remarks today, I'd like to provide an update on our strategy and the progress we're making within our 2021 operating plan. I will then provide a brief update on our outlook before turning it over to questions. As a reminder, our plan encompasses operational, commercial, financial and personnel specific areas. Beginning with operations. Over the last several months, collaboration between our technical, commercial and financial teams have improved significantly. As a result, we've been able to derive a more accurate basis of estimates and group procurement and better pricing, as Adrian noted earlier. We can make further improvements to synchronize hardware, software, IT, artificial intelligence and project management, which will be focused on going forward. We are committed to achieving operational and technical excellence to earn customer satisfaction, which will improve new deal closure rates. As I alluded to in my opening remarks, within our artificial intelligence business, we've made to make some difficult choices, namely and extensive staffing overhaul to our internal team to meet the demand for more comprehensive algorithm development. This turnover is slow deployment times of the near-term, we're strongly supported by our existing customers for long-term. I've tasked our Chief Operating Officer Ben Eiser with quarterbacking this artificial intelligence effort to ensure a successful outcome. As mentioned on our last call, we were in the process of consulting our operations and bringing all teams into a single location. We've recently signed a new lease for an office near our existing headquarters, and we'll move into our new building by the end of October. Of note, the terms were structured, so that there'll be no additional cash expense through the beginning of 2023. In addition to creating a more collective working environment, the new facility will have sufficient…

Thank you. Our first question is from the line of Bruce Boyd, private investor. Please proceed with your question.

Yes. I was wondering if you could give us a little bit of background on the Amtrak contract that you talked about on the last conference call. And any new milestones or things that you're doing to drive revenue vis-à-vis that specific contract. Thank you.

So, Bruce, thank you for the question. Yeah. I mean, we are still working closely with Amtrak. They had asked us for some additional information. We've been providing that. There are several other vendors as well. They're involved in that. And at this point right now, we've been asked to remain quiet about this from the Amtrak customer. And so, we anticipate making progress on that contract here in the next few weeks and months to come. And when we're allowed to have a more detailed conversation about it from the customer, we will absolutely do that.

Okay. Great. Thank you.

Thank you. Our next question is from the line of Priyanka Mahajan with ThinkEquity. Please proceed with your question.

Please describe the new undercarriage technology.

Sure. Priyanka, it's good to hear from you. Yeah. Our new undercarriage technology, as everybody knows that follows us. We have a -- we we've been offering a vehicle undercarriage examiner and we've had that system at some time. It's a system that basically has three cameras that look basically directly perpendicular up into the bottom of a particular railcar. Recently, we deployed a system called oblique vehicle into carriage examiner or obliquevue. And you can seek some short videos of what that system looks like on our website, but basically it's a -- it was developed earlier this year in about a 90 to 120-day engineering sprint and then deployed up into one of our class one customers. This new device uses a series of 10 cameras, looking at now multiple oblique viewpoints, and now can see an additional 25 individual inspection points up -- underneath the railcar. So, this device now has been in production and in operation with one of our class one railcars for -- rail customers for probably now almost six months. We've had terrific success with that. It's got a higher resolution cameras on it, and we're currently in the process of using the data that's coming off those cameras now to inspect railcars, but we're also employing artificial intelligence algorithms in conjunction with that device.

Great. Thank you.

Thanks, Priyanka.

Thank you. There are no further questions at this time. This concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Ferry for his closing remarks.

Thank you, operator. Thank you everyone, especially our shareholders that joined us on today's call. Have a good evening.

Before we conclude today's call, I would like to provide Duos' Safe Harbor statement that includes important cautions regarding forward-looking statements made during this call. This earnings call contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as believes, expects, may, will, should, anticipates, plans, and their opposites or similar expressions are intended to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon, which the statements are based and could cause Duos Technologies Group Inc.'s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to those described in Item 1A in Duos Annual Report on Form 10-K, which is expressly incorporated, herein, by reference. And other factors as may periodically be described in Duos filings with the SEC. Thank you for joining us today for Duos Technology Group's 2021 second quarter conference call. You may now disconnect.