Good afternoon. Welcome to Duos Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry; and CFO, Adrian Goldfarb. Following their remarks, we will be opening 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 would like to turn the call over to Duos' CEO, Chuck Ferry. Sir, please proceed.

Thank you. Welcome, everyone, and thank you for joining us. Earlier today, we issued our earnings press release and our 10-K for 2024. Copies are available in the Investor Relations section of our website. I encourage all listeners to view press releases and our 10-K filing to better understand some of the details we'll be discussing during today's call. We have previously discussed our strategy to diversify our business and accelerate the time line to profitability. Since our last earnings call, our team has been very busy working to execute our strategy of diversification in rail technology, edge data centers and power and things are going very well right now. In the last 3 months, we have closed the asset management agreement with new APR Energy and Fortress Investment Group, where we expect to earn approximately $42 million over the next 2 years. Under the asset management agreement, we have assumed control of an existing contract with a utility company in Southern California, utilizing 90 megawatts of gas turbines. We've also deployed an additional 300 megawatts of gas turbines in support of a large U.S.-based AI data center operator. We're continuing with fleet readiness to support additional APR Energy contracts in the negotiation phase. We also conducted a ribbon-cutting ceremony to officially commercialize our first edge data center in Amarillo, Texas. Over 100 local and state officials attended the School District 16 ceremony, and it included senior leaders from FiberLight, Accu-Tech and Amazon Web Services. Our next 2 edge data centers will be installed in the coming months in Tampa, Texas in cooperation with APR Energy as it works with the Tampa Energy Center on behind-the-meter power opportunities in that region. Our partnership with APR and Fortress Investment Group has significantly changed the nature of our company in just the last 6 months, and we will break even financially this year. Given this significant change, after Adrian goes through the financials, I'll discuss each line of business in more detail to help investors understand how we are operating going forward. With that, Adrian, would you please give us a review of the financials?

Thank you, Chuck. Before I cover the specific results for the fourth quarter and full year 2024, let me take a few minutes to give my perspective on what the company has achieved in the past year, much of which is not yet reflected in the posted financial results. Shortly after stepping back into the CFO position, Chuck described to me a bold and ambitious plan for the transformation of the company. His vision, as described in May 2024 seemed far reaching at the time, but the management team felt that it was necessary -- a necessary step to give the company a path to faster growth and profitability. Sometime back, the company withdrew from giving formal or even basic guidance due to the ongoing uncertainty surrounding our technology business and the segment in which we were operated, namely the rail car industry. We came to the realization that while our technology is the standard for wayside detection as the railroad has described it, using scanning and advanced AI processing, its adoption by the industry would likely take much longer than desired, causing ongoing losses for our business and continuous requirement for dilutive capitalization. Chuck challenged himself and the management team to take the significant assets that we have developed, including a highly capable staff and leadership team, a portfolio of intellectual property and operational excellence and evolve the business into other business areas, which could capitalize on those strengths. Accordingly, 2024 was a transformative year that saw the creation of 2 new subsidiaries, Duos Edge AI and Duos Energy. And the engagement with a significant partner to build the platform for the desired revenue growth and profitability without requiring large amounts of highly dilutive capital. In fact, I'm pleased to inform you that as of December 31, 2024, the…

Thank you, Adrian. Over the last several months, we have added many new investors along with additional analyst coverage. So I'm going to review what our three lines of business do along with the opportunities and risks for each. Let's begin with our legacy business, which is the railcar inspection portal. Although this has had slow growth in the last 4 years, it may become less important for our future understanding but understanding it is essential to know why it has allowed us the ability now to diversify into edge computing and power. Fuel Technology specializes in automated railcar inspection systems that combine advanced imaging technology with artificial intelligence. Our flagship product, the railcar inspection portal scans fast-moving freight and passenger trains, producing high-resolution images and sensor data from railcars as they pass through at speeds of up to 125 miles per hour. These inspection portals is a patented solution of hardware, software, IT and artificial intelligence to create the ability in real time to identify mechanical defects, structural issues, safety concerns and unauthorized human presence. This automated inspection process augments and could potentially replace traditional manual inspections, detecting problems that human inspectors might miss while eliminating the need to stop trains for physical examination, thereby saving railroad operators substantial time and operational costs. The railcar inspection portal evolved from experimental prototypes developed by Duos beginning in 2015. And today, we operate portals for CN, CSX, CPKC, FeraMex and Amtrak. In addition to these railroads, the Federal Rail Administration and Rail labor union leadership have expressed strong support for our technology. Perhaps a validation of our technology is that Norfolk Southern in a partnership with Georgia Technical Institute has copied our patented solution and begun to deploy them on their network, which is why we have initiated legal action against…

[Operator Instructions] Our first question comes from Ed Woo with Ascendant Capital.

Yes. Congratulations on all the progress you made. My question is on rail safety legislation. With the new administration and as we're further and further away removed from when the Ohio derail may happen, have you noticed any change in terms of people's legislature appetite for rail safety?

Yes. No, I appreciate it. And I think on the Railway Safety Act, which under the Biden administration, a lot of effort was being made both in the Senate and in the House of Representatives to try and push something through. And ultimately, it did not get through. And it really didn't really get its time with both sides, at least on the floor. I think the sense right now that I get from discussions that I've had with the FRA, some of our Class I customers and other rail industry stakeholders is that we could still see some safety regulations go through. I do think, however, given the current administration, the likelihood that any significant regulations being passed is probably unlikely. And at least that's the way we've kind of been planning things. That, of course, could always change, but I think the likelihood of a real comprehensive set of regulations coming out through legislation right now, I think, is probably much lower than it was prior to the Trump administration coming into office.

My last question is with a lot of tariff uncertainties, has that impacted any customers who are going to sign up for the edge data centers or your power contracts?

Yes. Right now, the threat of tariffs, and they're coming, I think everybody would agree with me, in some fashion or form, it has not impacted our business yet. I think areas that -- where we could see some impacts is primarily the -- probably the cost of raw materials. So we use steel and aluminum in our railcar inspection portal. That being said, most of our railcar inspection portal, even raw materials come from within the United States. So we'll have to wait and see what kind of impacts on that particular business. On the edge data center side, our strategic partner, Acu-Tech, we already had a discussion around this topic. They are taking measures to make it so that any tariff impacts are minimized. But again, in terms of raw material costs, there could potentially be some risk there. But right now, we have not been impacted by that. On the power side, no immediate impacts right there because right now, we -- through the asset management agreement and partnered with APR Energy, effectively, we own those assets outright and they're already all here in the United States, and they're primarily intended to be deployed in the United States up against U.S. data centers, although we are considering a couple of potential contracts that are in overseas locations. And we'll probably wait and see how the tariffs come out before we act on any of those international jurisdictions. But hopefully, that gives you kind of a sense of where we're at on the tariffs.

Northland Capital Markets.

This is Vijay Devar for Mike Latimore. A couple of questions. How many data centers are operational now? And do you expect to add a similar amount each quarter to reach your 15 by year-end?

Yes. No, I appreciate the question. Yes, currently, we have one data center that is fully commercialized and now beginning to produce revenue. That's with the School District 16 and the Panhandle of Texas. We currently have 2 additional edge data centers that are deployed in Tampa, Texas that are scheduled to be -- they're in the middle of installation. They'll be finalized here in the next month or so. And we pretty much plan to probably put in about 2 to 3 of these edge data centers each quarter at this moment. And by the end of the year, we'll have 15 in. Right now, that plan is on track. We obviously currently own 6 of those edge data centers. And so as Adrian discussed during his earnings -- his part of the earnings call, we're going to make moves to ensure that we can purchase the 9 additional. And we already have the customers that have already agreed that they want them. So finding homes for these edge data centers has been fairly easy and quick. Now we're just trying to accelerate that now that we've got the first one in. And again, we kind of exercised our construction and installation muscles on that first one, and now it's going to start going a lot faster.

Got it. So in fact, a continuation to that is, do you see a high potential for winning a hyperscaler deal? And do you still view that as an upside to the guidance of reaching 15 data centers?

Yes. We are in active discussions with 5 or 6 of the largest hyperscalers in the country. One of those hyperscalers is actually using some of our power turbines right now and a large AI data center. And we're seeing interest from the hyperscalers, not just for our power and not just at big box data centers, they are also interested in our edge data centers as well. So one of the Amazon Web Services attended the opening ceremony at our edge data center in Amarillo, Texas, and we had a very nice conversation with that team. And they're interested in both the large data centers where we can provide power as well as our edge data center computing. Go ahead, operator.

I was just going to say at this time, our question-and-answer session is concluded. And I would now like to turn the call back over to you, Mr. Ferry, for closing remarks.

Yes. Well, as always, before we want to just thank everybody for joining the call. And thanks for watching us. And stay tuned because our business is about to get much larger and become profitable this year. So thank you for your time. Back to you, operator.

Before we conclude today's call, I would now like to provide Duos a safe harbor statement that includes important cautions regarding forward-looking statements made during the call. This earnings call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking terminologies 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 these statements and the projections upon which the statements are based and could cause Duos Technologies Group Inc.'s actual results to differ materially from these 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 on Duos Technologies Group's Fourth Quarter and Full Year 2024 Earnings Call. You may now disconnect.