Duos Technologies (DUOT) 10-Q 19 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 13, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-55497
Entity Registrant Name	Duos Technologies Group, Inc.
Entity Central Index Key	0001396536
Entity Tax Identification Number	65-0493217
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	7660 Centurion Parkway
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Jacksonville
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32256
City Area Code	904
Local Phone Number	296-2807
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	DUOT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,410,625

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash	$ 613,594	$ 2,441,842
Restricted cash	32,519
Accounts receivable, net	1,601,152	1,462,463
Contract assets	609,008	641,947
Inventory	1,028,387	1,526,165
Prepaid expenses and other current assets	310,869	184,478
Note Receivable, net	159,375
Total Current Assets	4,354,904	6,256,895
Property and equipment, net	2,318,233	726,507
Operating lease right of use asset	4,117,471	4,373,155
Security deposit	500,000	550,000
OTHER ASSETS:
Intangible Asset, net	10,140,238
Note Receivable, net		153,750
Patents and trademarks, net	128,793	129,140
Software development costs, net	465,228	652,838
Total Other Assets	10,734,259	935,728
Total Assets	22,024,867	12,842,285
CURRENT LIABILITIES:
Accounts payable	1,727,190	595,634
Notes payable - financing agreements	128,404	41,976
Accrued expenses	323,593	164,113
Operating lease obligations-current portion	793,658	779,087
Contract liabilities, current	2,982,213	1,666,243
Total Current Liabilities	5,955,058	3,247,053
Contract liabilities, less current portion	7,947,755
Notes payable	1,647,995
Operating lease obligations, less current portion	3,961,590	4,228,718
Total Liabilities	19,512,398	7,475,771
STOCKHOLDERS' EQUITY:
Preferred stock, value
Common stock: $0.001 par value; 500,000,000 shares authorized, 8,051,189 and 7,306,663 shares issued, 8,049,865 and 7,305,339 shares outstanding at September 30, 2024 and December 31, 2023, respectively	8,049	7,306
Additional paid-in-capital	73,623,552	69,120,199
Accumulated deficit	(70,961,695)	(63,603,552)
Sub-total	2,669,921	5,523,966
Less:  Treasury stock (1,324 shares of common stock at September 30, 2024 and December 31, 2023)	(157,452)	(157,452)
Total Stockholders' Equity	2,512,469	5,366,514
Total Liabilities and Stockholders' Equity	22,024,867	12,842,285
Convertible Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value
Convertible Series C Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value
Convertible Series D Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value	1	1
Convertible Series E Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value	14	12
Convertible Series F Preferred Stock [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, value

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares available to be designated	9,441,000	9,441,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	8,051,189	7,306,663
Common stock, shares outstanding	8,049,865	7,305,339
Treasury stock, common shares	1,324	1,324
Convertible Series A Preferred Stock [Member]
Preferred stock, par value		$ 10
Preferred stock, shares available to be designated		500,000
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share		$ 6.30
Convertible Series B Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares available to be designated	15,000	15,000
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 7	$ 7
Preferred stock, shares issued	0	0
Convertible Series C Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares available to be designated	5,000	5,000
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 5.50	$ 5.50
Preferred stock, shares issued	0	0
Convertible Series D Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares available to be designated	4,000	4,000
Preferred stock, shares outstanding	1,399	1,299
Preferred stock, conversion price per share	$ 3	$ 3
Preferred stock, shares issued	1,399	1,299
Convertible Series E Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares available to be designated	30,000	30,000
Preferred stock, shares outstanding	13,625	11,500
Preferred stock, conversion price per share	$ 2.61	$ 3
Preferred stock, shares issued	13,625	11,500
Convertible Series F Preferred Stock [Member]
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares available to be designated	5,000	5,000
Preferred stock, shares outstanding	0	0
Preferred stock, conversion price per share	$ 6.20	$ 6.20
Preferred stock, shares issued	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
REVENUES:
Total Revenues	$ 3,238,910	$ 1,530,923	$ 5,820,086	$ 5,945,270
COST OF REVENUES:
Total Cost of Revenues	2,319,811	1,304,335	5,020,919	4,940,173
GROSS MARGIN	919,099	226,588	799,167	1,005,097
OPERATING EXPENSES:
Sales and marketing	471,411	353,386	1,737,353	962,040
Research and development	396,610	450,006	1,168,752	1,392,692
General and administration	1,971,358	2,394,173	5,790,804	6,916,390
Total Operating Expenses	2,839,379	3,197,565	8,696,909	9,271,122
LOSS FROM OPERATIONS	(1,920,280)	(2,970,977)	(7,897,742)	(8,266,025)
OTHER INCOME (EXPENSES):
Interest expense	(116,396)	(1,406)	(117,991)	(5,816)
Change in fair value of warrant liabilities	245,980		245,980
Gain on extinguishment of warrant liabilities	379,626		379,626
Other income, net	9,407	24,647	31,984	191,022
Total Other Income (Expenses), net	518,617	23,241	539,599	185,206
NET LOSS	$ (1,401,663)	$ (2,947,736)	$ (7,358,143)	$ (8,080,819)
Basic Net Loss Per Share	$ (0.18)	$ (0.41)	$ (0.98)	$ (1.12)
Diluted Net Loss Per Share	$ (0.18)	$ (0.41)	$ (0.98)	$ (1.12)
Weighted Average Shares-Basic	7,724,170	7,240,632	7,494,772	7,189,256
Weighted Average Shares-Diluted	7,724,170	7,240,632	7,494,772	7,189,256
Technology Service [Member]
REVENUES:
Total Revenues	$ 1,686,456	$ 705,849	$ 2,221,310	$ 3,404,107
COST OF REVENUES:
Total Cost of Revenues	947,563	883,836	2,311,912	3,723,151
Service, Other [Member]
REVENUES:
Total Revenues	1,552,454	825,074	3,598,776	2,541,163
COST OF REVENUES:
Total Cost of Revenues	$ 1,372,248	$ 420,499	$ 2,709,007	$ 1,217,022

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Preferred Stock B [Member]	Preferred Stock C [Member]	Preferred Stock D [Member]	Preferred Stock E [Member]	Preferred Stock F [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Total
Beginning balance, value at Dec. 31, 2022			$ 1			$ 7,156	$ 56,562,600	$ (52,361,834)	$ (157,452)	$ 4,050,471
Beginning balance, shares at Dec. 31, 2022			1,299			7,156,876
Series E preferred stock issued				$ 4			3,999,996			4,000,000
Series E preferred stock issued, shares				4,000
Stock options compensation							75,128			75,128
Stock issuance cost							(299,145)			(299,145)
Stock issued for services						$ 12	32,488			32,500
Stock issued for services, shares						12,463
Net loss								(2,143,683)		(2,143,683)
Ending balance, value at Mar. 31, 2023			$ 1	$ 4		$ 7,168	60,371,067	(54,505,517)	(157,452)	5,715,271
Ending balance, shares at Mar. 31, 2023			1,299	4,000		7,169,339
Stock options compensation							161,399			161,399
Stock issuance cost							281,500			281,500
Stock issued for services						$ 6	32,494			32,500
Stock issued for services, shares						5,645
Stock issued under the Employee Stock Purchase Plan ("ESPP") for cash and compensation						$ 66	183,199			183,265
Stock issued under the Employee Stock Purchase Plan ("ESPP") for cash and compensation, shares						65,561
Net loss								(2,989,400)		(2,989,400)
Ending balance, value at Jun. 30, 2023			$ 1	$ 4		$ 7,240	61,029,659	(57,494,917)	(157,452)	3,384,535
Ending balance, shares at Jun. 30, 2023			1,299	4,000		7,240,545
Series F preferred stock issued					$ 5		4,999,995			5,000,000
Series F preferred stock issued, shares					5,000
Stock options compensation							164,118			164,118
Stock issued for services						$ 8	40,557			40,565
Stock issued for services, shares						7,910
Stock Compensation under ESPP							32,728			32,728
Net loss								(2,947,736)		(2,947,736)
Ending balance, value at Sep. 30, 2023			$ 1	$ 4	$ 5	$ 7,248	66,267,057	(60,442,653)	(157,452)	5,674,210
Ending balance, shares at Sep. 30, 2023			1,299	4,000	5,000	7,248,455
Beginning balance, value at Dec. 31, 2023			$ 1	$ 12		$ 7,306	69,120,199	(63,603,552)	(157,452)	5,366,514
Beginning balance, shares at Dec. 31, 2023			1,299	11,500		7,306,663
Series D preferred stock issued			$ 1				619,999			620,000
Series D preferred stock issued, shares			620
Series E preferred stock issued				$ 2			2,125,000			2,125,002
Series E preferred stock issued, shares				2,125
Stock options compensation							141,204			141,204
Stock issuance cost							(36,188)			(36,188)
Stock issued for services						$ 9	37,491			37,500
Stock issued for services, shares						8,655
Stock Compensation under ESPP							18,116			18,116
Net loss								(2,752,309)		(2,752,309)
Ending balance, value at Mar. 31, 2024			$ 2	$ 14		$ 7,315	72,025,821	(66,355,861)	(157,452)	5,519,839
Ending balance, shares at Mar. 31, 2024			1,919	13,625		7,315,318
Series D preferred stock issued							250,000			250,000
Series D preferred stock issued, shares			250			216,668
Stock options compensation							59,905			59,905
Stock issuance cost							(40,000)			(40,000)
Stock issued for services						$ 15	42,485			42,500
Stock issued for services, shares						15,041
Stock Compensation under ESPP						$ 38	109,780			109,818
Stock issued under the ESPP for cash and compensation, shares						38,041
Series D preferred stock converted to common stock			$ (1)			$ 217	(216)
Series D preferred stock converted to common stock, shares			(650)
Common stock issued for cash						$ 38	115,525			115,563
Common stock issued for cash, shares						38,530
Net loss								(3,204,171)		(3,204,171)
Ending balance, value at Jun. 30, 2024			$ 1	$ 14		$ 7,623	72,563,300	(69,560,032)	(157,452)	2,853,454
Ending balance, shares at Jun. 30, 2024			1,519	13,625		7,623,598
Stock issuance cost							(2,500)			(2,500)
Common stock issued upon cash exercise of warrants						$ 344	899,177			899,521
Common stock issued upon cash exercise of warrants, shares						344,644
Stock options compensation							25,466			25,466
Stock issued for services						$ 14	42,486			42,500
Stock issued for services, shares						14,433
Stock Compensation under ESPP							14,244			14,244
Series D preferred stock converted to common stock						$ 40	(40)
Series D preferred stock converted to common stock, shares			(120)			40,000
Common stock issued for cash under ATM						$ 28	81,420			81,448
Common stock issued for cash under ATM, shares						28,514
Net loss								(1,401,663)		(1,401,663)
Ending balance, value at Sep. 30, 2024			$ 1	$ 14		$ 8,049	$ 73,623,553	$ (70,961,695)	$ (157,452)	$ 2,512,469
Ending balance, shares at Sep. 30, 2024			1,399	13,625		8,051,189

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash from operating activities:
Net loss	$ (7,358,143)	$ (8,080,819)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,472,965	393,057
Stock based compensation	281,405	499,590
Stock issued for services	122,500	105,565
Amortization of debt discount related to warrant liabilities	73,601
Fair value of warrant liabilities	(245,980)
Gain on settlement of warrant liabilities	(379,626)
Amortization of operating lease right of use asset	255,684	235,217
Changes in assets and liabilities:
Accounts receivable	(138,689)	3,159,389
Note receivable	(5,625)	(151,875)
Contract assets	32,939	(921,009)
Inventory	197,777	(97,552)
Security deposit	50,000	50,000
Prepaid expenses and other current assets	300,271	543,793
Accounts payable	1,131,552	(1,670,625)
Accrued expenses	159,482	(178,081)
Operating lease obligation	(252,557)	(154,653)
Contract liabilities	(1,897,703)	630,931
Net cash used in operating activities	(6,200,147)	(5,637,072)
Cash flows from investing activities:
Purchase of patents/trademarks	(8,105)	(58,208)
Purchase of software development		(640,609)
Purchase of fixed assets	(1,547,439)	(199,618)
Net cash used in investing activities	(1,555,544)	(898,435)
Cash flows from financing activities:
Repayments on financing agreements	(340,232)	(395,221)
Repayment of finance lease		(22,851)
Proceeds from notes payable	2,200,000
Proceeds from warrant exercises	899,521
Proceeds from common stock issued	197,011
Stock issuance cost	(78,688)	(17,645)
Proceeds from shares issued under Employee Stock Purchase Plan	87,348	117,048
Proceeds from preferred stock issued	2,995,002	9,000,000
Net cash provided by financing activities	5,959,962	8,681,331
Net increase (decrease) in cash	(1,795,729)	2,145,824
Cash, beginning of period	2,441,842	1,121,092
Cash, end of period	646,113	3,266,916
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the accompanying balance sheet to the amount presented in the above statement of cash flows:
Cash and cash equivalents	613,594	3,266,916
Restricted cash	32,519
Cash, end of period	646,113	3,266,916
Supplemental Disclosure of Cash Flow Information:
Interest paid	1,596	5,816
Taxes paid	5,432
Supplemental Non-Cash Investing and Financing Activities:
Debt discount for warrant liability	625,606
Notes issued for financing of insurance premiums	426,661	458,452
Transfer of inventory to fixed assets	300,000
Intangible asset acquired with contract liability	$ 11,161,428

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (1,401,663)	$ (2,947,736)	$ (7,358,143)	$ (8,080,819)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Duos Technologies Group, Inc., through its operating subsidiaries, Duos Technologies, Inc. (“Duos”), Duos Edge AI, Inc. (“Edge”), and Duos Energy Corporation, which was formed in July 2024 (collectively the “Company”), is a company that specializes in machine vision and artificial intelligence to analyze fast moving objects such as trains, trucks, automobiles, and aircraft. This technology can help improve safety, maintenance, and operating metrics. The Company is the inventor of the Railcar Inspection Portal (RIP) and is currently the rail industry leader for machine vision/camera wayside detection systems that include the use of Artificial Intelligence at speeds up to 125 mph. The RIP inspects a train at full speed from the top, sides, and bottom looking at FRA/AAR mandated safety inspection points. The system also detects illegal riders, which can assist law enforcement agencies. Each railcar is scanned with machine vision cameras and other sensors from the top, sides, and bottom, where images are produced within seconds of the railcar passing. These images can then be used by the customer to help prevent derailments, improve maintenance operations, and assist with security. The Company self-performs all aspects of hardware, software, Information Technology (“IT”), and Artificial Intelligence development and engineering. The Company maintains significant intellectual property and continues to be awarded additional patents for both the technology and methodologies used. The Company also has a proprietary portfolio of approximately 53 Artificial Intelligence “Use Cases” that automatically flag defects. The Company has deployed this system with several Class 1 railroads and one major passenger carrier and anticipates an increased demand in the future from railcar operators, owners, shippers, transit railroads as well as law enforcement agencies. During the second quarter of 2024, the Company initiated a study to determine how to expand its market reach into non-rail markets. Using the information technology (IT) investments already made into the RIP in conjunction with the recently awarded patents for both methodology and artificial intelligence, the Company has determined that its use of Edge Data Centers for the processing of large volumes of image data has broad applicability to enabling local, high-speed processing in similar environments as being undertaken at the 13 current RIPs, that is, in rural and underserved areas. Accordingly, the Company announced its expansion into the market for the provision of bespoke Edge Data Centers (EDCs) early in the third quarter, targeting certain markets including remote education and healthcare facilities as well as other applications where high-speed, local processing is required. The Company has also developed the Automated Logistics Information System (“ALIS”) which automates gatehouse operations where trucks enter and exit large logistics and intermodal facilities. This solution also incorporates sensors and data points as necessary for each operation and directly interconnects with backend logistics databases and processes to streamline and significantly improve operations and security and, importantly, dramatically improve throughput on each lane on which the technology is deployed. The Company is not currently actively pursuing further customers for ALIS but will continue to analyze the potential market and, depending on market demand, may deploy an upgraded Truck Inspection Portal (TIP) which uses the same technology and lessons learned from the ALIS and RIP systems at some point in the future. The Company’s strategy for the rail industry is to expand beyond our existing customer base in the Class 1 and major passenger transit market and we expect to add additional users in the short line, industrial and regional transit markets in North America. In addition, we plan to expand our subscription offering to car owners and shippers and expand operations to meet the demand from international customers. The Company is prepared to respond and scale, if necessary, to react to increased demand for potential regulations that may be imposed around wayside detection technology. In the future the Company may put more emphasis on the trucking and intermodal sector with an updated Truck Inspection Portal solution. The Company continues to focus on operational and technical excellence, customer satisfaction, and maintaining a highly skilled and performance-based work force. The Company continues to investigate and pursue market opportunities for subsets of its technology including deployment and management of Edge Data Centers, a fundamental component of the distributed, rapid response data analysis used in the RIP. Starting in the second half of 2024, the Company opened two new initiatives focused on the rapidly growing market for data centers and the associated power generation needed to support the growth in this market space. Duos, through its technology and its staff, has extensive experience in both disciplines and plans to monetize these assets through two new subsidiaries. The Company formed Duos Energy Corporation given the overwhelming demand for power solutions from Data Center Hyper Scalers who also operate within the Edge Data Center space. The new subsidiary is focused on the burgeoning market for energy to power data centers and is currently engaged in some consulting for organizations looking to acquire power generation assets. It is also expected to engage in operations work in this space up to and including the build out of data center power plants. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (all of which are of a normal recurring nature) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future period. These unaudited consolidated financial statements and the unaudited condensed notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024. Principles of Consolidation The unaudited consolidated financial statements include Duos Technologies Group, Inc. and its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc. and Duos Energy Corporation. All inter-company transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The most significant estimates in the accompanying unaudited consolidated financial statements include the initial valuation of a non-monetary transaction with a customer, valuation of intangible assets for impairment analysis, allowance on accounts receivable and notes receivable, valuation of common stock warrants received in exchange for an asset sale, valuation of deferred tax assets, valuation of other long-lived assets, estimates of net contract revenues and the total estimated costs to determine progress towards contract completion, valuation of inventory, estimates of the valuation of right of use assets and corresponding lease liabilities, valuation of warrants issued with debt, valuation of warrant liabilities and valuation of stock-based awards. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Concentrations Cash Concentrations Cash is maintained at financial institutions and at times, balances may exceed federally insured limits. We have not experienced any losses related to these balances. As of September 30, 2024, the balance in one financial institution exceeded federally insured limits by approximately $ 119,570 Significant Customers and Concentration of Credit Risk The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the nine months ended September 30, 2024, three customers accounted for 41% 29% 11% 55% 29% At September 30, 2024, two customers accounted for 52% 32% 52% 25% 14% Geographic Concentration For the nine months ended September 30, 2024, approximately 43% 37% Significant Vendors and Concentration of Credit Risk In some instances, the Company relies on a limited pool of vendors for key components related to the manufacturing of its subsystems. These vendors are primarily focused on camera, server, and lighting technologies integral to the Company’s solution. Where possible, the Company seeks multiple vendors for key components to mitigate vendor concentration risk. Fair Value of Financial Instruments and Fair Value Measurements The Company follows Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that requires the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions that the market participants would use in the valuation of the asset or liability based on the best available information. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The estimated fair value of certain financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and notes payable are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The changes in level 3 valuations for the three and nine months ended September 30, 2024 was as follows: Schedule of fair value of financial instruments September 30, 2024 December 31, 2023 $ — Issuance of Warrant liabilities 625,606 Change in fair value (245,980 ) Gain on extinguishment (379,626 ) $ — Accounts Receivable On January 1, 2023, the Company adopted ASC 326, “Financial Instruments - Credit Losses”. In accordance with ASC 326, an allowance is maintained for estimated forward-looking losses resulting from the possible inability of customers to make the required payments (current expected losses). The amount of the allowance is determined principally on the basis of past collection experience and known financial factors regarding specific customers. Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated credit loss allowances for uncollectible accounts. In determining the collections on the account, historical trends are evaluated, and specific customer issues are reviewed to arrive at appropriate allowances. The Company reviews its accounts to estimate losses resulting from the inability of its customers to make the required payments. Any required allowance is based on specific analysis of past due accounts and also considers historical trends of write-offs. Past due status is based on how recently payments have been received from customers. Inventory Inventory consists primarily of spare parts and consumables and long-lead time components to be used in the production of our technology systems or in connection with maintenance agreements with customers. Any inventory deemed to be obsolete is written off. Inventory is stated at the lower of cost or net realizable value. Inventory cost is primarily determined using the weighted average cost method. Intangible Asset In May 2024, the Company recognized an intangible asset which represents digital image data rights received under a license agreement as non-monetary consideration under a five-year customer contract. The intangible asset will be amortized over the five-year contractual term. Long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company estimates the future undiscounted net cash flows of the related asset or asset group over the remaining life of the asset in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. If the carrying amount is greater than the undiscounted cash flows, the carrying amount of the asset is reduced to the asset’s fair value. An impairment loss is recognized immediately as an operating expense in the consolidated statements of operations. Reversal of previously recorded impairment losses are prohibited. Software Development Costs Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be Sold, Leased, or Marketed), are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software development costs are evaluated for impairment annually by comparing the net realizable value to the unamortized capitalized costs and writing these costs down to net realizable value. Stock-Based Compensation The Company accounts for employee and non-employee stock-based compensation in accordance with ASC 718-10, “Share-Based Payment,” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including stock options, restricted stock units, and employee stock purchases based on estimated fair values. The stock-based compensation carries a graded vesting feature subject to the condition of time of employment service with awarded stock-based compensation tranches vesting evenly upon the anniversary date of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. In accordance with ASC 718-10-35-8, the Company elected to recognize the fair value of the stock award using the graded vesting method as time of employment service is the criteria for vesting. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding a number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk-free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities. Revenue Recognition The Company follows Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), that affects the timing of when certain types of revenues will be recognized. The basic principles in ASC 606 include the following: a contract with a customer creates distinct contract assets and performance obligations, satisfaction of a performance obligation creates revenue, and a performance obligation is satisfied upon transfer of control to a good or service to a customer. Revenue is recognized by evaluating our revenue contracts with customers based on the five-step model under ASC 606: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to separate performance obligations; and 5. Recognize revenue when (or as) each performance obligation is satisfied. The Company generates revenue from four sources: (1) Technology Systems (2) AI Technologies (3) Technical Support (4) Consulting Services Technology Systems For revenues related to technology systems, the Company recognizes revenue over time using a cost-based input methodology in which significant judgment is required to estimate costs to complete projects. These estimated costs are then used to determine the progress towards contract completion and the corresponding amount of revenue to recognize. Accordingly, the Company now bases its revenue recognition on ASC 606-10-25-27, where control of a good or service transfers over time if the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date including a profit margin or reasonable return on capital. Control is deemed to pass to the customer instantaneously as the goods are manufactured and revenue is recognized accordingly. In addition, the Company has adopted ASC 606-10-55-21 such that if the cost incurred is not proportionate to the progress in satisfying the performance obligation, we adjust the input method to recognize revenue only to the extent of the cost incurred. Therefore, the Company will recognize revenue at an equal amount to the cost of the goods to satisfy the performance obligation. To accurately reflect revenue recognition based on the input method, the Company has adopted the implementation guidance as set out in ASC-606-10-55-187 through 192. Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred. Costs include direct material, direct labor, subcontract labor and other allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are also charged to the periods as incurred. Any recognized revenues that have not been billed to a customer are recorded as an asset in “contract assets”. Any billings of customers more than recognized revenues are recorded as a liability in “contract liabilities”. However, in the event a loss on a contract is foreseen, the Company will recognize the loss when such loss is determined to be both probable and reasonably estimable. AI Technologies The Company has revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms which provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of a fixed fee related to the design, development, testing and incorporation of new algorithms into the system, which is recognized as revenue at a point in time upon acceptance, as well as an annual application maintenance fee, which is recognized as revenue ratably over the contracted maintenance term. Technical Support Technical support services are provided on both an as-needed and extended-term basis and may include providing both parts and labor. Maintenance and technical support provided outside of a maintenance contract are on an “as-requested” basis, and revenue is recognized over time as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized over time ratably over the term of the contract. Consulting Services The Company’s consulting services business generates revenues under contracts with customers from three sources: (1) Professional Services (consulting and auditing); (2) Customer service training and (3) Maintenance/support. (1) Revenues for professional services, which are of short-term duration, are recognized when services are completed; (2) Training sales are one-time upfront short-term training sessions and are recognized after the service has been performed; and (3) Maintenance/support is an optional product sold to our software license customers under one-year or longer contracts. Accordingly, maintenance payments received upfront are deferred and recognized over the contract term. Multiple Performance Obligations and Allocation of Transaction Price Arrangements with customers may involve multiple performance obligations including project revenue and maintenance services in our Technology Systems business. Maintenance will occur after the project is completed and may be provided on an extended-term basis or on an as-needed basis. In our consulting services business, multiple performance obligations may include any of the above four sources. Training and maintenance on software products may occur after the software product sale while other services may occur before or after the software product sale and may not relate to the software product. Revenue recognition for a multiple performance obligations arrangement is as follows: Each performance obligation is accounted for separately when each has value to the customer on a standalone basis and there is Company specific objective evidence of the selling price of each deliverable. For revenue arrangements with multiple deliverables, the Company allocates the total customer arrangement to the separate units of accounting based on their relative selling prices as determined by the price of the items when sold separately. Once the selling price is allocated, the revenue for each performance obligation is recognized using the applicable criteria under GAAP as discussed above for performance obligations sold in single performance obligation arrangements. A delivered item or items that do not qualify as a separate unit of accounting within the arrangement are combined with the other applicable undelivered items within the arrangement. The allocation of arrangement consideration and the recognition of revenue is then determined for those combined deliverables as a single unit of accounting. The Company sells its various services and software and hardware products at established prices on a standalone basis which provides Company specific objective evidence of selling price for purposes of performance obligations relative selling price allocation. The Company only sells maintenance services or spare parts based on its established rates after it has completed a system integration project for a customer. The customer is not required to purchase maintenance services. All elements in multiple performance obligations arrangements with Company customers qualify as separate units of account for revenue recognition purposes. Leases The Company follows ASC 842 “Leases”. This guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, this guidance requires that lessors separate lease and non-lease components in a contract in accordance with the revenue guidance in ASC 606. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the balance sheet and instead recognize the lease payments as an expense when incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components as a single lease component. At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. Operating ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date to determine the present value of future payments. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administration expenses in the consolidated statements of operations. Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise or conversion of stock options, stock warrants, convertible debt instruments, convertible preferred stock or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. At September 30, 2024, there were (i) 0 1,259,066 466,334 5,220,309 At September 30, 2023, there were (i) an aggregate of 80,091 1,217,775 433,000 1,333,334 806,452 Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies will issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of an Accounting Standards Update (“ASU”). In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. ASU 2023-07 is effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025. ASU 2023-07 must be applied retrospectively to all prior periods presented in the financial statements. The Company has evaluated the disclosure impact of ASU 2023-07; and determined the standard will not have an impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 is effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company evaluated the disclosure impact of ASU 2023-09; and determined the standard will not have an impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

LIQUIDITY

LIQUIDITY	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	NOTE 2 – LIQUIDITY Under Accounting Codification ASC 205, Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. As required by ASC 205-40, this evaluation shall initially not take into consideration the potential mitigating effects of plans that have not been fully implemented as of the date the financial statements are issued. Management has assessed the Company’s ability to continue as a going concern in accordance with the requirement of ASC 205-40. As reflected in the accompanying consolidated financial statements, the Company had a net loss of $ 7,358,143 6,200,147 1,600,154 70,961,695 As previously noted, the Company was successful during 2023 in raising gross proceeds of over $11,500,000 from the sale of Series E and F Preferred Stock. Additionally, in the first and second quarters of 2024, the Company raised gross proceeds of $2,995,000 from the issuance of a combination of Series D and E Preferred Stock (See Note 6). Additionally, during the second quarter of 2024 the Company entered into an ATM Sales Agreement (the “Sales Agreement”) with Ascendiant Capital Markets, LLC (the “Sales Agent” or “ACM”) relating to the sale of our common stock, par value $ 0.001 7,500,000 2.2 December 31, 2025 10% In the long run, the continuation of the Company as a going concern is dependent upon the ability of the Company to continue executing its business plan and growing the Company sufficiently to generate enough revenue to attain consistently profitable operations. The Company cannot currently quantify the uncertainty related to previous supply chain delays or the persistence of inflation and their effects on our customers in the coming quarters. We have analyzed our cash flow under “stress test” conditions and have determined that we have sufficient liquid assets on hand, forthcoming with ongoing business or available via the capital markets to maintain operations for at least twelve months from the date of this report. In addition, management has been taking and continues to take actions including, but not limited to, elimination of certain costs that do not contribute to short term revenue, and re-aligning both management and staffing with a focus on improving certain skill sets necessary to build growth and profitability and focusing product strategy on opportunities that are likely to bear results in the relatively short term. The Company believes that, as described above, it will have sufficient sources of working capital to meet its obligations over the following twelve months. In the last twelve months the Company has experienced relatively steady contracted backlog as well as seen positive signs from new commercial engagements that indicate improvements in future commercial opportunities for both one-time capital and recurring services revenues. Management believes that, at this time, the conditions in our market space with ongoing contract delays, the consequent need to procure certain materials in advance of a binding contract and the additional time needed to execute on new contracts previously reported have put a strain on our cash reserves. However, proactive management of our existing contracts and operating costs, recent stock offerings and private placements as well as the availability to raise capital via the Sales Agreement indicate there is no substantial doubt that the Company can continue as a going concern for a period of twelve months from the issuance date of this report. We continue executing the plan to grow our business and achieve profitability. The Company may selectively look at opportunities for fund raising in the future. Management has extensively evaluated our requirements for the next twelve months and has determined that the Company currently has sufficient cash and access to capital to operate for at least that period. While no assurance can be provided, management believes that these actions provide the opportunity for the Company to continue as a going concern and to grow its business and achieve profitability with access to additional capital funding. Ultimately the continuation of the Company as a going concern is dependent upon the ability of the Company to continue executing the plan described above which was put in place in late 2022, continued in 2023, and will continue in 2024 and beyond. These consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

INTANGIBLE ASSET

INTANGIBLE ASSET	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSET	NOTE 3 – INTANGIBLE ASSET In May 2024, the Company recorded an intangible asset with a fair value of $ 11,161,428 5 The fair value of the asset was determined on the contract inception date based on the standalone selling price of the service and goods to be provided to the customer under the 5-year contract since the Company could not reasonably estimate the fair value of the data rights received. The non-monetary transaction was accounted for in accordance with Accounting Standards Codification (ASC) 606-10-32-21 through ASC 606-10-32-24. On the contract inception date, the Company also recorded an immediate amortization of the intangible asset of $ 199,008 11,161,428 199,008 5 In accordance with ASC 350-30-35-1, the amortization for the intangible asset is based on its useful life and the useful life of an intangible asset is the period over which it is expected to contribute directly or indirectly to the future cash flows of that entity. Accordingly, amortization of the intangible asset is recognized over the life of the contract of five years. In accordance with ASC 350-30-35-14, an intangible asset that is subject to amortization shall be reviewed for impairment if the carrying amount of the asset is not recoverable and exceeds its fair value. There is no indication of impairment at September 30, 2024. Intangible asset at September 30, 2024 and December 31, 2023 consists of: Schedule of intangible asset September 30, December 31, 2024 2023 Intangible Asset, gross $ 11,161,428 $ — Accumulated Amortization (1,021,190 ) — Intangible Asset, net $ 10,140,238 $ — Amortization of the intangible asset during the nine months ended September 30, 2024 and September 30 2023, was $ 1,021,190 0 The future amortization of the intangible asset is as follows: Schedule of future amortization of intangible assets Calendar Year Amount 2024 $ 548,120 2025 2,192,484 2026 2,192,484 2027 2,192,484 2028 2,192,484 2029 822,182 Total Intangible Asset Amortization $ 10,140,238

DEBT

DEBT	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT	NOTE 4 – DEBT Notes Payable - Financing Agreements The Company’s notes payable relating to financing agreements classified as current liabilities consist of the following as of September 30, 2024 and December 31, 2023: Schedule of notes payable related to financing agreements September 30, 2024 December 31, 2023 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ 77,095 8.25 % $ 39,968 8.00 % Third Party - Insurance Note 2 10,194 — 2,008 — Third Party - Insurance Note 3 41,115 — — — Total $ 128,404 — $ 41,976 — The Company entered into an agreement on April 15, 2023 with its insurance provider by issuing a note payable (Insurance Note 1) for the purchase of an insurance policy in the amount of $ 142,734 8.00% 13,501 154,338 8.25% 16,023 77,095 39,968 The Company renewed its agreement on February 3, 2023 with its insurance provider by issuing a note payable (Insurance Note 2) for the purchase of an insurance policy in the amount of $ 24,140 2,012 24,480 2,040 10,194 2,008 The Company entered into an agreement on February 3, 2024 with its insurance provider by issuing a note payable (Insurance Note 3) for the purchase of an insurance policy in the amount of $ 245,798 84,473 20,166 41,115 0 Promissory Notes On July 22, 2024, the Company and Duos Edge AI entered into secured promissory notes (the "Notes") with two institutional investors in the Company, 21 April Fund LP and 21 April Fund Ltd. The principal amounts of the Notes are $ 1,520,000 680,000 10% December 30, 2025 As security for the Notes, Duos Edge AI granted a first priority security interest in the equipment installed, as well as all revenues from such equipment and the Company pledged all proceeds from the sale of shares of Common Stock under its ATM facility. All of the pledged revenues from the equipment and the ATM facility are deposited in a blocked account and used solely to repay the Notes until they are repaid in full. In November 2024, the Company obtained the lenders’ consent waiving the requirement to deposit ATM proceeds in a separate account and to utilize the ATM proceeds for general corporate purposes, provided that any such amounts must be deposited in the blocked account on or prior to December 1, 2025. The Notes may be prepaid without any prepayment penalties, provided that any prepayments shall be made proportionately to each Note. This transaction is accounted for in accordance with ASC 470, which provides guidance on the accounting for debt and debt modifications. The Company is in compliance with all covenants and conditions associated with the Notes as of September 30, 2024. As of September 30, 2024, the carrying amount of the Notes is classified as a non-current liability on the Company’s consolidated balance sheet. The Company accrued interest of $ 42,794 In connection with the Notes, the Company issued warrants to purchase 92,727 207,273 3.00 5 The above warrants and the previously held 44,644 344,644 2.61 The warrant liability value was measured using a Monte Carlo simulation valuation method. The initial warrant liability valuation on the loan date was $ 625,606 which was recorded as a debt discount and initial warrant liability 379,626 245,980 On September 19, 2024, the warrant exercise date, the Company eliminated the warrant liability and recognized a gain on the extinguishment of the warrants in the amount $ 379,626 The promissory Notes Payable at September 30, 2024 were as follows: Schedule of promissory notes payable Notes Payable $ 2,200,000 Unamortized Discount (552,005 ) Notes Payable, net $ 1,647,995 Amortization of the discount from the Note date of July 22, 2024 through September 30, 2024 was $ 73,601 The Company used the following assumptions in determining the fair value of the warrant liabilities: Schedule of assumptions in determining Upon Grant Upon Exercise 21 April Fund LP 21 April Fund Ltd 21 April Fund LP 21 April Fund Ltd Date of Grant (Exercise) July 22, 2024 July 22, 2024 September 19, 2024 September 19, 2024 Note Value $ — $ — $ — $ — Issue (Exercise) Stock Price $ 2.77 $ 2.77 $ 2.49 $ 2.49 Strike $ 3.00 $ 3.00 $ 2.61 2.61 Share Equivalents 92,727 207,273 92,727 207,273 Strike Price discount 0 % 0 % 0 % 0 % Expected Remaining Term (Years) 5.00 5.00 4.84 4.84 Historical Volatility 52 % 52 % 58 % 58 % Expected Volatility 100 % 100 % 58 % 58 % Dividend Yield 0 % 0 % 0 % 0 % Annual Rate of Quarterly Dividends $ 0.000 $ 0.000 $ 0.000 $ 0.000 Discount Rate - Bond Equivalent Yield 4.170 % 4.170 % 3.480 % 3.480 %

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 – COMMITMENTS AND CONTINGENCIES Operating Lease Obligations On July 26, 2021, the Company entered a new operating lease agreement for office and warehouse combination space of 40,000 4,980,104 at lease commencement. Rent for the first eleven months of the term was calculated based on 30,000 600,000 50,000 4,117,471 As of September 30, 2024, the office and warehouse lease is the Company’s only lease with a term greater than twelve months. The office and warehouse lease has a remaining term of approximately 7.75 years and includes an option to extend for two renewal terms of five years each. The renewal options are not reasonably certain to be exercised, and therefore, they are not included when determining the lease term used to establish the right-of use asset and lease liability. The Company also has several short-term leases, primarily related to equipment. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the consolidated balance sheet and instead recognize the lease payments in expense as incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components (such as common area maintenance) as a single lease component. The following table shows supplemental information related to leases: Schedule of supplemental information related to leases Nine Months Ended September 30, 2024 2023 Lease cost: Operating lease cost $ 586,228 $ 586,228 Short-term lease cost $ 16,477 $ 56,052 Other information: Operating cash outflow used for operating leases $ 583,101 $ 505,664 Weighted average discount rate 9.0 % 9.0 % Weighted average remaining lease term 7.75 8.6 As of September 30, 2024, future minimum lease payments due under our operating leases are as follows: Schedule of future minimum lease payments due under the operating lease Amount Calendar year: 2024 $ 195,986 2025 798,556 2026 818,518 2027 838,984 2028 859,856 Thereafter 3,183,571 Total undiscounted future minimum lease payments 6,695,471 Less: Impact of discounting (1,940,223 ) Total present value of operating lease obligations 4,755,248 Current portion, operating lease obligation (793,658 ) Operating lease obligations, less current portion $ 3,961,590

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 6 – STOCKHOLDERS’ EQUITY Series B Convertible Preferred Stock The following summary of certain terms and provisions of our Series B Convertible Preferred Stock (the “Series B Convertible Preferred Stock”) is subject to, and qualified in its entirety by reference to, the terms and provisions set forth in our certificate of designation of preferences, rights and limitations of Series B Convertible Preferred Stock (the “Series B Convertible Preferred Certificate of Designation”) as previously filed. Subject to the limitations prescribed by our articles of incorporation, our board of directors is authorized to establish the number of shares constituting each series of preferred stock and to fix the designations, powers, preferences, and rights of the shares of each of those series and the qualifications, limitations and restrictions of each of those series, all without any further vote or action by our stockholders. Our board of directors designated 15,000 10,000,000 1,000 Each share of Series B Convertible Preferred Stock was convertible at any time at the holder’s option into a number of shares of common stock equal to $ 1,000 7.00 0 Series C Convertible Preferred Stock The Company’s Board of Directors designated 5,000 1,000 Each share of Series C Convertible Preferred Stock had 172 votes 5.50 On February 26, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain existing investors in the Company (the “Purchasers”). Pursuant to the Purchase Agreement, the Purchasers purchased 4,500 shares of a newly authorized Series C Convertible Preferred Stock, and the Company received proceeds of $ 4,500,000 454,546 0 In connection with the Purchase Agreement, the Company also entered into a Registration Rights Agreement with the Purchasers. Pursuant to the Registration Rights Agreement, the Company filed with the SEC a registration statement covering the resale by the Purchasers of the shares of common stock into which the shares of Series C Convertible Preferred Stock were convertible. The Registration Rights Agreement contains customary representations, warranties, agreements and indemnification rights and obligations of the parties. Series D Convertible Preferred Stock On September 28, 2022, the Company amended its articles of incorporation to designate 4,000 1,000 Each share of Series D Convertible Preferred Stock has 333 votes 1,000 3.00 On September 30, 2022, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain existing investors in the Company (the “Purchasers”). Pursuant to the Purchase Agreement, the Purchasers purchased 999 999,000 300 300,000 On May 16, 2023, the Series D Convertible Preferred Stock was approved for conversion to common shares during the Company’s annual shareholder meeting. On March 22, 2024, March 28, 2024, and April 3, 2024, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain existing and other accredited investors (the “2024 Purchasers”). Pursuant to the Purchase Agreements, the 2024 Purchasers purchased an aggregate of 870 870,000 In April and May of 2024, 650 216,668 1,399 1,299 In connection with such Purchase Agreements, the Company entered into Registration Rights Agreements and filed registration statements with the SEC covering the resale by the Purchasers of the shares of common stock into which the shares of Series D Convertible Preferred Stock are convertible. The Registration Rights Agreements contain customary representations, warranties, agreements and indemnification rights and obligations of the parties. The Registration Rights Agreements contain provisions for liquidated damages equal to 1% multiplied by the aggregate subscription amount paid, paid each month, in the event certain deadlines are missed. Series E Convertible Preferred Stock The Company’s Board of Directors has designated 30,000 1,000 Each share of Series E Convertible Preferred Stock has 333 votes 3.00 The Company on March 27, 2023 entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an existing investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 4,000 4,000,000 The existing investor’s Purchase Agreement also provided that the Company would not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement) on or prior to December 31, 2023 that entitled any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Convertible Preferred Stock without the consent of the Purchaser. On November 9, 2023, the Company entered into a Securities Purchase Agreement (the “November Purchase Agreement”) with an existing investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 2,500 2,500,000 The November Purchase Agreement also provided that the Company would not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the November Purchase Agreement) on or prior to June 30, 2024 that entitled any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series E Convertible Preferred Stock without the consent of the Purchasers. The conversion price of the Series E Convertible Preferred Stock as of June 30, 2024 was $ 3.00 The Purchasers under the November Purchase Agreement also were the holders of the Company’s Series F Convertible Preferred Stock issued on August 1, 2023. The purchase agreement relating to the shares of Series F Convertible Preferred Stock required the consent of the holders in the event the Company were to issue common stock or rights to acquire common stock prior to December 31, 2023 at an effective price per share less than the then conversion price of the Series F Convertible Preferred Stock, which was $ 6.20 7,500 On March 22, 2024 and March 28, 2024, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain existing and other accredited investors (the “2024 Purchasers”). Pursuant to the Purchase Agreements, the 2024 Purchasers purchased an aggregate of 2,125 1,000 2,125,002 As of September 30, 2024 and December 31, 2023, respectively, there were 13,625 11,500 In connection with such Purchase Agreements, the Company also entered into Registration Rights Agreements with the Purchasers. Pursuant to the Registration Rights Agreements, the Company filed with the SEC registration statements covering the resale by the Purchasers of the shares of common stock into which the shares of Series E Convertible Preferred Stock are convertible. The Registration Rights Agreements contain customary representations, warranties, agreements and indemnification rights and obligations of the parties. The Registration Rights Agreements contain provisions for liquidated damages equal to 1% multiplied by the aggregate subscription amount paid, paid each month, in the event certain deadlines are missed. Series F Convertible Preferred Stock On August 2, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an existing, accredited investor in the Company (the “Purchaser”). Pursuant to the Purchase Agreement, the Purchaser purchased 5,000 5,000,000 The Company's Board of Directors designated 5,000 1,000 6.20 The holders of the Series F Preferred Stock, the holders of the common stock and the holders of any other class or series of shares entitled to vote with the common stock shall vote together as one class on all matters submitted to a vote of shareholders of the Company. Each share of Series F Preferred Stock had 161 votes The Company also agreed that it would not, with certain exceptions, sell or issue common stock or Common Stock Equivalents (as defined in the Purchase Agreement relating to the Series F Preferred Stock) on or prior to December 31, 2023 that entitled any person to acquire shares of common stock at an effective price per share less than the then conversion price of the Series F Preferred Stock without the consent of the holders. As a result of that agreement, upon the issuance of 2,500 5,000 5,000 As of September 30, 2024 and December 31, 2023, respectively, there were zero 0 Common stock issued Nine Months Ended September 30, 2024 During the three months ended March 31, 2024, the Company issued 8,655 37,500 4.33 On April 23, 2024, two shareholders converted 147 78 225 225,000 3.00 49,000 26,000 On April 30, 2024, two shareholders converted 100 250 350 350,000 3.00 33,334 83,334 On May 7, 2024, a shareholder converted 75 75,000 3.00 25,000 On May 17, 2024, the Company entered into an At-the-Market Issuance Sales Agreement (the “Sales Agreement”) with Ascendiant Capital Markets, LLC, as sales agent (the “Agent”) providing for the sale by the Company of shares of our common stock, having an aggregate offering price of up to $ 7,500,000 On June 12, 2024, the Company issued 11,239 3.05 33,261 On June 13, 2024, the Company issued 9,747 3.15 29,626 On June 17, 2024, the Company issued 400 3.02 1,165 On June 18, 2024, the Company issued 1,534 3.03 4,507 On June 25, 2024, the Company issued 15,610 3.15 47,004 In summary during the three months ended June 30, 2024, the Company issued an aggregate of 38,530 115,563 During the three months ended June 30, 2024, the Company issued 15,041 42,500 2.83 On June 30, 2024, the Company issued 38,041 87,348 2.30 On July 1, 2024, the Company issued 700 3.01 2,036 On July 5, 2024, a shareholder converted 120 120,000 3.00 40,000 On July 11, 2024, the Company issued 300 3.01 868 On July 12, 2024, the Company issued 400 3.00 1,157 On July 15, 2024, the Company issued 4,400 3.00 12,807 On July 16, 2024, the Company issued 1,800 3.00 5,231 On July 17, 2024, the Company issued 6,677 3.08 19,910 On July 18, 2024, the Company issued 2,001 3.04 5,896 On July 22, 2024, the Company issued 400 3.00 1,157 On July 24, 2024, the Company issued 200 3.01 577 On July 25, 2024, the Company issued 300 3.00 866 On July 26, 2024, the Company issued 5,000 3.03 14,670 On July 29, 2024, the Company issued 3,250 3.07 9,682 On July 30, 2024, the Company issued 2,267 3.02 6,638 On September 19, 2024, the Company issued an aggregate of 344,644 104,647 239,997 2.61 899,521 On September 30, 2024, the Company issued 819 3.01 2,385 In summary during the three months ended September 30, 2024, the Company issued an aggregate of 28,514 81,448 During the three months ended September 30, 2024, the Company issued 14,433 42,500 2.95 Nine Months Ended September 30, 2023 During the three months ended March 31, 2023, the Company issued 12,463 32,500 2.61 During the three months ended June 30, 2023, the Company issued 5,645 32,500 5.76 On June 30, 2023, the Company issued 65,561 117,048 1.79 During the three months ended September 30, 2023, the Company issued 7,910 40,565 5.13 Employee Stock Purchase Plan In the fourth quarter of 2022, the board of directors adopted an Employee Stock Purchase Plan (“ESPP”) which was effective as of January 1, 2023 with a term of 10 The ESPP allows eligible employees to purchase shares of the Company's common stock at a discounted price, through payroll deductions from a minimum of 1% and up to 25% of their eligible compensation up to a maximum of $25,000 or the IRS allowable limit per calendar year. 85% 1,000,000 Under ASC 718-50 “Employee Share Purchase Plans” the plan is considered a compensatory plan and the compensation for each six-month offering period is computed based upon the grant date (that is the first date of each offering period) fair value of the estimated shares to be purchased based on the estimated payroll deduction withholdings. Each grant date fair value is computed as the sum of (a) 15% purchase discount off of the grant date quoted trading price of the Company’s common stock and (b) the fair value of the look-back feature of the Company’s common stock on the grant date which consists of a call option on 85% of a share of common stock and a put option on 15% of a share of common stock. The Company computed the fair value of the look-back feature call and put options for January 1, 2024 to September 30, 2024 using a Black Scholes option pricing model using the following assumptions: Schedule of black scholes option pricing model using assumptions At September 30, 2024 Grant date share price $ 2.70 2.96 Grant date exercise price $ 2.30 2.52 Expected term 0.25 0.5 years Expected volatility 62.00 % - 67.3% Risk-free rate 4.38 % - 5.26% Expected dividend rate 0 % During the offer period, the Company records stock-based compensation pro rata as an expense and a credit to additional paid-in capital. The Company issued 38,041 65,561 Schedule of stock-based compensation For the Nine Months ended Cash from employee withholdings used to purchase ESPP shares $ 123,359 Stock based compensation expense 54,833 Total charges related to the Employee Stock Purchase Plan $ 178,192 For the Nine Months ended September 30, 2023 Cash from employee withholdings used to purchase ESPP shares $ 117,048 Stock based compensation expense 98,945 Total charges related to the Employee Stock Purchase Plan $ 215,993 Stock-Based Compensation: Options and Warrants Stock-based compensation expense recognized under ASC 718-10 for the nine months ended September 30, 2024 and 2023, was $ 226,575 400,645 186,277 On May 12, 2021, the Board adopted the 2021 Equity Incentive Plan (the “2021 Plan”) providing for the issuance of up to 1,000,000 As of September 30, 2024, and December 31, 2023, options to purchase a total of 1,259,066 1,387,775 850,629 269,658 269,658 709,408 788,117 280,000 330,000 Schedule of non-plan options Weighted Average Outstanding at December 31, 2022 926,266 $ 5.74 3.3 $ — Granted 463,117 $ 4.22 4.35 $ — Forfeited (1,608 ) $ 14.00 — $ — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Exercisable at December 31, 2023 581,324 $ 5.38 1.8 $ — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Granted — $ — — $ — Exercised/Forfeited/Expired (128,709 ) $ 4.79 — $ — Outstanding at September 30, 2024 1,259,066 $ 5.27 2.2 $ — Exercisable at September 30, 2024 850,629 $ 5.44 1.6 $ — Warrants Schedule of warrants Weighted O utstanding at December 31, 2022 147,591 $ 8.63 0.8 $ — Warrants expired, forfeited, cancelled or exercised (102,947 ) $ — — $ — Warrants issued — $ — — $ — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 $ — Exercisable at December 31, 2023 44,644 $ 7.70 0.7 $ — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 $ — Warrants issued 300,000 $ 3.00 5.0 $ — Warrants expired, forfeited, cancelled or exercised (344,644 ) $ — — $ — Outstanding at September 30, 2024 — $ — — $ — Exercisable at September 30, 2024 — $ — — $ —

REVENUE AND CONTRACT ACCOUNTING

REVENUE AND CONTRACT ACCOUNTING	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE AND CONTRACT ACCOUNTING	NOTE 7 - REVENUE AND CONTRACT ACCOUNTING Revenue Recognition and Contract Accounting The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technology which is included in the consolidated statements of operations line-item Technology Systems; (3) Technical Support; and (4) Consulting Services which is included in the consolidated statements of operations line-item Services and Consulting. Contract assets and contract liabilities on uncompleted contracts for revenues recognized over time are as follows: Contract Assets Contract assets on uncompleted contracts represent cumulative revenues recognized in excess of billings and/or cash received on uncompleted contracts accounted for under the cost-to-cost input method, which recognizes revenue based on the ratio of cost incurred to total estimated costs. At September 30, 2024 and December 31, 2023, contract assets on uncompleted contracts consisted of the following: Schedule of contracts assets on uncompleted contracts September 30, 2024 December 31, 2023 Cumulative revenues recognized $ 9,889,995 $ 8,820,256 Less: Billings or cash received (9,280,987 ) (8,178,309 ) Contract assets $ 609,008 $ 641,947 Contract Liabilities Contract liabilities on uncompleted contracts represent billings and/or cash received that exceed cumulative revenues recognized on uncompleted contracts accounted for under the cost-to-cost input method, which recognizes revenues based on the ratio of the cost incurred to total estimated costs. Contract liabilities on services and consulting revenues represent billings and/or cash received in excess of revenue recognized on service agreements that are not accounted for under the cost-to-cost input method. At September 30, 2024 and December 31, 2023, contract liabilities on uncompleted contracts and contract liabilities on services and consulting consisted of the following: Schedule of contract liabilities on uncompleted contracts September 30, 2024 December 31, 2023 Billings and/or cash receipts on uncompleted contracts $ 1,264,658 $ 1,264,658 Less: Cumulative revenues recognized (856,743 ) (199,976 ) Contract liabilities, technology systems, current 407,915 1,064,682 Contract liabilities, services and consulting, current 2,574,298 601,561 Total contract liabilities, current $ 2,982,213 $ 1,666,243 Total contract liabilities, services and consulting, non-current $ 7,947,755 $ — Contract liabilities at December 31, 2023 were $ 1,666,243 656,767 582,877 The Company expects to recognize all current contract liabilities within 12 months from the respective consolidated balance sheet date. In May 2024, the Company recorded an initial deferred revenue as a contract liability in the amount of $ 11,161,428 199,008 2,192,484 7,947,755 As of September 30, 2024 the balance in contract liabilities pertaining to the above agreement is as follows: Schedule of balance in contract liabilities Calendar Year Amount 2024 $ 548,120 2025 2,192,484 2026 2,192,484 2027 2,192,484 2028 2,192,484 2029 822,182 Total Contract Liabilities $ 10,140,238 Disaggregation of Revenue The Company is following the guidance of ASC 606-10-55-296 and 297 for disaggregation of revenue. Accordingly, revenue has been disaggregated according to the nature, amount, timing and uncertainty of revenue and cash flows. We are providing qualitative and quantitative disclosures. Qualitative: 1. We have four distinct revenue sources: a. Technology Systems (Turnkey, engineered projects); b. AI Technology (Associated maintenance and support services); c. Technical Support (Licensing and professional services related to auditing of data center assets); and d. Consulting Services (Predetermined algorithms to provide important operating information to the users of our systems). 2. We currently operate in North America including the USA, Mexico and Canada. 3. Our customers include rail transportation, commercial, government, banking and IT suppliers. 4. Our services & maintenance contracts are fixed price and fall into two duration types: a. Turnkey engineered projects and professional service contracts that are less than one year in duration and are typically one to two quarters in length; and b. Maintenance and support contracts ranging from one to five years in length. Quantitative: For the Three Months Ended September 30, 2024 Schedule of disaggregation of revenue Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 Major Goods and Service Lines Turnkey Projects $ 1,686,456 $ — $ — $ — $ 1,686,456 Maintenance and Support 913,228 505,982 — — 1,419,210 Algorithms 133,244 — — — 133,244 $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 Timing of Revenue Recognition Goods transferred over time $ 1,686,456 $ — $ — $ — $ 1,686,456 Services transferred over time 1,046,472 505,982 — — 1,552,454 $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 For the Three Months Ended September 30, 2023 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 Major Goods and Service Lines Turnkey Projects $ 705,849 $ — $ — $ — $ 705,849 Maintenance and Support 627,707 19,220 — — 646,927 Algorithms — — — 178,147 178,147 $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 Timing of Revenue Recognition Goods transferred over time $ 705,849 $ — $ — $ — $ 705,849 Services transferred over time 627,707 19,220 — 178,147 825,074 $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 For the Nine Months Ended September 30, 2024 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 Major Goods and Service Lines Turnkey Projects $ 2,221,310 $ — $ — $ — $ 2,221,310 Maintenance and Support 2,556,512 505,982 — — 3,062,494 Algorithms 536,282 — — — 536,282 $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 Timing of Revenue Recognition Goods transferred over time $ 2,221,310 $ — $ — $ — $ 2,221,310 Services transferred over time 3,092,794 505,982 — — 3,598,776 $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 For the Nine Months Ended September 30, 2023 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270 Major Goods and Service Lines Turnkey Projects $ 3,390,555 $ 13,552 $ — $ — $ 3,404,107 Maintenance and Support 1,856,736 76,880 11,353 — 1,944,969 Algorithms — — — 596,194 596,194 $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270 Timing of Revenue Recognition Goods transferred over time $ 3,390,555 $ 13,552 $ — $ — $ 3,404,107 Services transferred over time 1,856,736 76,880 11,353 596,194 2,541,163 $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270

DEFINED CONTRIBUTION PLAN

DEFINED CONTRIBUTION PLAN	9 Months Ended
	Sep. 30, 2024
Retirement Benefits [Abstract]
DEFINED CONTRIBUTION PLAN	NOTE 8 – DEFINED CONTRIBUTION PLAN The Company has a 401(k)-retirement savings plan (the “401(k) Plan”) covering all eligible employees. The 401(k) Plan allows employees to defer a portion of their annual compensation, and the Company may match a portion of the employees’ contributions generally after the first nine months of service. During the three months ended September 30, 2024, the Company matched 100% of the first 4% of eligible employee compensation that was contributed to the 401(k) Plan. For the three and nine months ended September 30, 2024, the Company recognized expense for matching cash contributions to the 401(k) Plan totaling $ 50,977 162,415

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS Frank Lonegro serves on the Board of Directors and is a member of the Audit Committee. Mr. Lonegro is the Chief Executive Officer of Landstar System, Inc. (“Landstar”), based in Jacksonville, Florida. The Company has previously utilized Landstar for shipping services including transporting large items. Most recently, Landstar was the designated vendor involved in shipping an Edge Data Center to an Amtrak site in Secaucus, New Jersey. Mr. Lonegro was not involved in the selection of his company by Duos, with whom there was an existing relationship pre-dating Mr. Lonegro’s appointment to the Board of Duos. Mr. Lonegro did not participate in any Board discussions or votes relating to the selection of Landstar nor approval of the transactions with Landstar. The terms of these transactions were reviewed and approved by the management team, which concluded that they are fair and reasonable to the Company and on terms no less favorable than could have been obtained from an unaffiliated party. For the nine months ended September 30, 2024 and September 30, 2023 the Company expensed $ 48,257 15,117 0 33,812

SALE OF ASSETS

SALE OF ASSETS	9 Months Ended
	Sep. 30, 2024
Sale Of Assets
SALE OF ASSETS	NOTE 10 – SALE OF ASSETS On June 29, 2023, the Company completed a transaction whereby it sold assets related to its Integrated Correctional Automation System (iCAS) business with a single customer. In the fourth quarter of 2022, the Company elected to not renew a support contract due to the limited nature of the business. The transaction was completed with a third-party buyer of which the Company’s former and now current Chief Financial Officer is a director. Said officer did not participate in the transaction on behalf of the Company. The assets of the iCAS business were sold for a convertible promissory note with a principal amount of $ 165,000 10% 0.003 55,000,000 The common stock purchase warrants are for a total of 55,000,000 0.01 The Company recognized a gain on sale of assets of $ 150,000 The original issue discount is being accrued into interest income over the term of the note. The note receivable was recorded as follows on September 30, 2024: Schedule of note receivable September 30, 2024 Convertible note receivable $ 165,000 Unamortized discount (5,625 ) Convertible note receivable, net $ 159,375

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS On October 2, 2024, two holders of our Series E Preferred Stock converted an aggregate of 52 19,922 The Company filed a Registration Statement on Form S-8 covering the additional shares or share equivalents issuable under the 2021 Plan as a result of the amendment approved by shareholders on September 30, 2024. The registration statement was declared effective on October 9, 2024. On October 8, 2024, two holders of our Series E Preferred Stock converted an aggregate of 73 27,970 On October 24, 2024, a holder of our Series D Preferred Stock converted 100 33,334 On October 16, 2024, the Company entered into a Master Lease Agreement (the “Master Lease”) to lease three Edge Data Centers and related equipment (the “Data Centers”) for a term of 66 months beginning November 1, 2024. The Data Centers are expected to be used by Duos Edge AI, Inc., a wholly owned subsidiary of the Company, for the provision of information technology and communications services for users operating in rural areas. The Master Lease provides for monthly payments over 66 months starting December 10, 2024. The first six payments shall each be $3,900.00 (or $1,300.00 per unit). For months seven through 66 (or any portion thereof), the monthly payments shall each be $43,981.38 (or $14,660.46 per unit). The final payment is due June 10, 2030, and upon payment in full of all the payments due under the Master Lease the Company will then purchase the Data Centers for $1.00. Subsequent to the balance sheet date and through November 13, 2024 the Company issued an aggregate of 279,534 3.92 1,062,604 On November 14, 2024, the Company and Duos Edge AI amended the secured promissory notes dated July 22, 2024 to provide that the funds raised by the Company’s “at the market” facility no longer had to be deposited in a blocked account subject to the lenders’ security interest and used solely to repay the notes. The Company may use such funds for general corporate purposes provided that an amount equal to the sum of all funds raised by the “at the market” facility from and after November 14, 2024 through December 1, 2025 and not deposited in the blocked account must be deposited in the blocked account on or before December 1, 2025.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations Duos Technologies Group, Inc., through its operating subsidiaries, Duos Technologies, Inc. (“Duos”), Duos Edge AI, Inc. (“Edge”), and Duos Energy Corporation, which was formed in July 2024 (collectively the “Company”), is a company that specializes in machine vision and artificial intelligence to analyze fast moving objects such as trains, trucks, automobiles, and aircraft. This technology can help improve safety, maintenance, and operating metrics. The Company is the inventor of the Railcar Inspection Portal (RIP) and is currently the rail industry leader for machine vision/camera wayside detection systems that include the use of Artificial Intelligence at speeds up to 125 mph. The RIP inspects a train at full speed from the top, sides, and bottom looking at FRA/AAR mandated safety inspection points. The system also detects illegal riders, which can assist law enforcement agencies. Each railcar is scanned with machine vision cameras and other sensors from the top, sides, and bottom, where images are produced within seconds of the railcar passing. These images can then be used by the customer to help prevent derailments, improve maintenance operations, and assist with security. The Company self-performs all aspects of hardware, software, Information Technology (“IT”), and Artificial Intelligence development and engineering. The Company maintains significant intellectual property and continues to be awarded additional patents for both the technology and methodologies used. The Company also has a proprietary portfolio of approximately 53 Artificial Intelligence “Use Cases” that automatically flag defects. The Company has deployed this system with several Class 1 railroads and one major passenger carrier and anticipates an increased demand in the future from railcar operators, owners, shippers, transit railroads as well as law enforcement agencies. During the second quarter of 2024, the Company initiated a study to determine how to expand its market reach into non-rail markets. Using the information technology (IT) investments already made into the RIP in conjunction with the recently awarded patents for both methodology and artificial intelligence, the Company has determined that its use of Edge Data Centers for the processing of large volumes of image data has broad applicability to enabling local, high-speed processing in similar environments as being undertaken at the 13 current RIPs, that is, in rural and underserved areas. Accordingly, the Company announced its expansion into the market for the provision of bespoke Edge Data Centers (EDCs) early in the third quarter, targeting certain markets including remote education and healthcare facilities as well as other applications where high-speed, local processing is required. The Company has also developed the Automated Logistics Information System (“ALIS”) which automates gatehouse operations where trucks enter and exit large logistics and intermodal facilities. This solution also incorporates sensors and data points as necessary for each operation and directly interconnects with backend logistics databases and processes to streamline and significantly improve operations and security and, importantly, dramatically improve throughput on each lane on which the technology is deployed. The Company is not currently actively pursuing further customers for ALIS but will continue to analyze the potential market and, depending on market demand, may deploy an upgraded Truck Inspection Portal (TIP) which uses the same technology and lessons learned from the ALIS and RIP systems at some point in the future. The Company’s strategy for the rail industry is to expand beyond our existing customer base in the Class 1 and major passenger transit market and we expect to add additional users in the short line, industrial and regional transit markets in North America. In addition, we plan to expand our subscription offering to car owners and shippers and expand operations to meet the demand from international customers. The Company is prepared to respond and scale, if necessary, to react to increased demand for potential regulations that may be imposed around wayside detection technology. In the future the Company may put more emphasis on the trucking and intermodal sector with an updated Truck Inspection Portal solution. The Company continues to focus on operational and technical excellence, customer satisfaction, and maintaining a highly skilled and performance-based work force. The Company continues to investigate and pursue market opportunities for subsets of its technology including deployment and management of Edge Data Centers, a fundamental component of the distributed, rapid response data analysis used in the RIP. Starting in the second half of 2024, the Company opened two new initiatives focused on the rapidly growing market for data centers and the associated power generation needed to support the growth in this market space. Duos, through its technology and its staff, has extensive experience in both disciplines and plans to monetize these assets through two new subsidiaries. The Company formed Duos Energy Corporation given the overwhelming demand for power solutions from Data Center Hyper Scalers who also operate within the Edge Data Center space. The new subsidiary is focused on the burgeoning market for energy to power data centers and is currently engaged in some consulting for organizations looking to acquire power generation assets. It is also expected to engage in operations work in this space up to and including the build out of data center power plants.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (all of which are of a normal recurring nature) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future period. These unaudited consolidated financial statements and the unaudited condensed notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024.
Principles of Consolidation	Principles of Consolidation The unaudited consolidated financial statements include Duos Technologies Group, Inc. and its wholly owned subsidiaries, Duos Technologies, Inc., Duos Edge AI, Inc. and Duos Energy Corporation. All inter-company transactions and balances are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The most significant estimates in the accompanying unaudited consolidated financial statements include the initial valuation of a non-monetary transaction with a customer, valuation of intangible assets for impairment analysis, allowance on accounts receivable and notes receivable, valuation of common stock warrants received in exchange for an asset sale, valuation of deferred tax assets, valuation of other long-lived assets, estimates of net contract revenues and the total estimated costs to determine progress towards contract completion, valuation of inventory, estimates of the valuation of right of use assets and corresponding lease liabilities, valuation of warrants issued with debt, valuation of warrant liabilities and valuation of stock-based awards. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Concentrations	Concentrations Cash Concentrations Cash is maintained at financial institutions and at times, balances may exceed federally insured limits. We have not experienced any losses related to these balances. As of September 30, 2024, the balance in one financial institution exceeded federally insured limits by approximately $ 119,570 Significant Customers and Concentration of Credit Risk The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the nine months ended September 30, 2024, three customers accounted for 41% 29% 11% 55% 29% At September 30, 2024, two customers accounted for 52% 32% 52% 25% 14% Geographic Concentration For the nine months ended September 30, 2024, approximately 43% 37% Significant Vendors and Concentration of Credit Risk In some instances, the Company relies on a limited pool of vendors for key components related to the manufacturing of its subsystems. These vendors are primarily focused on camera, server, and lighting technologies integral to the Company’s solution. Where possible, the Company seeks multiple vendors for key components to mitigate vendor concentration risk.
Fair Value of Financial Instruments and Fair Value Measurements	Fair Value of Financial Instruments and Fair Value Measurements The Company follows Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that requires the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions that the market participants would use in the valuation of the asset or liability based on the best available information. The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The estimated fair value of certain financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and notes payable are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The changes in level 3 valuations for the three and nine months ended September 30, 2024 was as follows: Schedule of fair value of financial instruments September 30, 2024 December 31, 2023 $ — Issuance of Warrant liabilities 625,606 Change in fair value (245,980 ) Gain on extinguishment (379,626 ) $ —
Accounts Receivable	Accounts Receivable On January 1, 2023, the Company adopted ASC 326, “Financial Instruments - Credit Losses”. In accordance with ASC 326, an allowance is maintained for estimated forward-looking losses resulting from the possible inability of customers to make the required payments (current expected losses). The amount of the allowance is determined principally on the basis of past collection experience and known financial factors regarding specific customers. Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated credit loss allowances for uncollectible accounts. In determining the collections on the account, historical trends are evaluated, and specific customer issues are reviewed to arrive at appropriate allowances. The Company reviews its accounts to estimate losses resulting from the inability of its customers to make the required payments. Any required allowance is based on specific analysis of past due accounts and also considers historical trends of write-offs. Past due status is based on how recently payments have been received from customers.
Inventory	Inventory Inventory consists primarily of spare parts and consumables and long-lead time components to be used in the production of our technology systems or in connection with maintenance agreements with customers. Any inventory deemed to be obsolete is written off. Inventory is stated at the lower of cost or net realizable value. Inventory cost is primarily determined using the weighted average cost method.
Intangible Asset	Intangible Asset In May 2024, the Company recognized an intangible asset which represents digital image data rights received under a license agreement as non-monetary consideration under a five-year customer contract. The intangible asset will be amortized over the five-year contractual term.
Long-lived assets	Long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company estimates the future undiscounted net cash flows of the related asset or asset group over the remaining life of the asset in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. If the carrying amount is greater than the undiscounted cash flows, the carrying amount of the asset is reduced to the asset’s fair value. An impairment loss is recognized immediately as an operating expense in the consolidated statements of operations. Reversal of previously recorded impairment losses are prohibited.
Software Development Costs	Software Development Costs Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs. The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product meets its design specifications, including functionality, features, and technical performance requirements. Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, as defined within ASC 985-20 (Software – Costs of Software to be Sold, Leased, or Marketed), are capitalized and amortized on a product-by-product basis when the product is available for general release to customers. Software development costs are evaluated for impairment annually by comparing the net realizable value to the unamortized capitalized costs and writing these costs down to net realizable value.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for employee and non-employee stock-based compensation in accordance with ASC 718-10, “Share-Based Payment,” which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including stock options, restricted stock units, and employee stock purchases based on estimated fair values. The stock-based compensation carries a graded vesting feature subject to the condition of time of employment service with awarded stock-based compensation tranches vesting evenly upon the anniversary date of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing formula. In accordance with ASC 718-10-35-8, the Company elected to recognize the fair value of the stock award using the graded vesting method as time of employment service is the criteria for vesting. The Company’s determination of fair value using an option-pricing model is affected by the stock price as well as assumptions regarding a number of highly subjective variables. The Company estimates volatility based upon the historical stock price of the Company and estimates the expected term for stock options using the simplified method for employees and directors and the contractual term for non-employees. The risk-free rate is determined based upon the prevailing rate of United States Treasury securities with similar maturities.
Revenue Recognition	Revenue Recognition The Company follows Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), that affects the timing of when certain types of revenues will be recognized. The basic principles in ASC 606 include the following: a contract with a customer creates distinct contract assets and performance obligations, satisfaction of a performance obligation creates revenue, and a performance obligation is satisfied upon transfer of control to a good or service to a customer. Revenue is recognized by evaluating our revenue contracts with customers based on the five-step model under ASC 606: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to separate performance obligations; and 5. Recognize revenue when (or as) each performance obligation is satisfied. The Company generates revenue from four sources: (1) Technology Systems (2) AI Technologies (3) Technical Support (4) Consulting Services Technology Systems For revenues related to technology systems, the Company recognizes revenue over time using a cost-based input methodology in which significant judgment is required to estimate costs to complete projects. These estimated costs are then used to determine the progress towards contract completion and the corresponding amount of revenue to recognize. Accordingly, the Company now bases its revenue recognition on ASC 606-10-25-27, where control of a good or service transfers over time if the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date including a profit margin or reasonable return on capital. Control is deemed to pass to the customer instantaneously as the goods are manufactured and revenue is recognized accordingly. In addition, the Company has adopted ASC 606-10-55-21 such that if the cost incurred is not proportionate to the progress in satisfying the performance obligation, we adjust the input method to recognize revenue only to the extent of the cost incurred. Therefore, the Company will recognize revenue at an equal amount to the cost of the goods to satisfy the performance obligation. To accurately reflect revenue recognition based on the input method, the Company has adopted the implementation guidance as set out in ASC-606-10-55-187 through 192. Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred. Costs include direct material, direct labor, subcontract labor and other allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are also charged to the periods as incurred. Any recognized revenues that have not been billed to a customer are recorded as an asset in “contract assets”. Any billings of customers more than recognized revenues are recorded as a liability in “contract liabilities”. However, in the event a loss on a contract is foreseen, the Company will recognize the loss when such loss is determined to be both probable and reasonably estimable. AI Technologies The Company has revenue from applications that incorporate artificial intelligence (AI) in the form of predetermined algorithms which provide important operating information to the users of our systems. The revenue generated from these applications of AI consists of a fixed fee related to the design, development, testing and incorporation of new algorithms into the system, which is recognized as revenue at a point in time upon acceptance, as well as an annual application maintenance fee, which is recognized as revenue ratably over the contracted maintenance term. Technical Support Technical support services are provided on both an as-needed and extended-term basis and may include providing both parts and labor. Maintenance and technical support provided outside of a maintenance contract are on an “as-requested” basis, and revenue is recognized over time as the services are provided. Revenue for maintenance and technical support provided on an extended-term basis is recognized over time ratably over the term of the contract. Consulting Services The Company’s consulting services business generates revenues under contracts with customers from three sources: (1) Professional Services (consulting and auditing); (2) Customer service training and (3) Maintenance/support. (1) Revenues for professional services, which are of short-term duration, are recognized when services are completed; (2) Training sales are one-time upfront short-term training sessions and are recognized after the service has been performed; and (3) Maintenance/support is an optional product sold to our software license customers under one-year or longer contracts. Accordingly, maintenance payments received upfront are deferred and recognized over the contract term.
Multiple Performance Obligations and Allocation of Transaction Price	Multiple Performance Obligations and Allocation of Transaction Price Arrangements with customers may involve multiple performance obligations including project revenue and maintenance services in our Technology Systems business. Maintenance will occur after the project is completed and may be provided on an extended-term basis or on an as-needed basis. In our consulting services business, multiple performance obligations may include any of the above four sources. Training and maintenance on software products may occur after the software product sale while other services may occur before or after the software product sale and may not relate to the software product. Revenue recognition for a multiple performance obligations arrangement is as follows: Each performance obligation is accounted for separately when each has value to the customer on a standalone basis and there is Company specific objective evidence of the selling price of each deliverable. For revenue arrangements with multiple deliverables, the Company allocates the total customer arrangement to the separate units of accounting based on their relative selling prices as determined by the price of the items when sold separately. Once the selling price is allocated, the revenue for each performance obligation is recognized using the applicable criteria under GAAP as discussed above for performance obligations sold in single performance obligation arrangements. A delivered item or items that do not qualify as a separate unit of accounting within the arrangement are combined with the other applicable undelivered items within the arrangement. The allocation of arrangement consideration and the recognition of revenue is then determined for those combined deliverables as a single unit of accounting. The Company sells its various services and software and hardware products at established prices on a standalone basis which provides Company specific objective evidence of selling price for purposes of performance obligations relative selling price allocation. The Company only sells maintenance services or spare parts based on its established rates after it has completed a system integration project for a customer. The customer is not required to purchase maintenance services. All elements in multiple performance obligations arrangements with Company customers qualify as separate units of account for revenue recognition purposes.
Leases	Leases The Company follows ASC 842 “Leases”. This guidance requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities for most operating leases. In addition, this guidance requires that lessors separate lease and non-lease components in a contract in accordance with the revenue guidance in ASC 606. The Company made an accounting policy election to not recognize short-term leases with terms of twelve months or less on the balance sheet and instead recognize the lease payments as an expense when incurred. The Company has also elected to account for real estate leases that contain both lease and non-lease components as a single lease component. At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. Operating ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date to determine the present value of future payments. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administration expenses in the consolidated statements of operations.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings per share (EPS) are computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss applicable to common stock by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise or conversion of stock options, stock warrants, convertible debt instruments, convertible preferred stock or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. At September 30, 2024, there were (i) 0 1,259,066 466,334 5,220,309 At September 30, 2023, there were (i) an aggregate of 80,091 1,217,775 433,000 1,333,334 806,452
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, the FASB or other standards setting bodies will issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of an Accounting Standards Update (“ASU”). In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. ASU 2023-07 is effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025. ASU 2023-07 must be applied retrospectively to all prior periods presented in the financial statements. The Company has evaluated the disclosure impact of ASU 2023-07; and determined the standard will not have an impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 is effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company evaluated the disclosure impact of ASU 2023-09; and determined the standard will not have an impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of fair value of financial instruments	Schedule of fair value of financial instruments September 30, 2024 December 31, 2023 $ — Issuance of Warrant liabilities 625,606 Change in fair value (245,980 ) Gain on extinguishment (379,626 ) $ —

INTANGIBLE ASSET (Tables)

INTANGIBLE ASSET (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible asset	Schedule of intangible asset September 30, December 31, 2024 2023 Intangible Asset, gross $ 11,161,428 $ — Accumulated Amortization (1,021,190 ) — Intangible Asset, net $ 10,140,238 $ —
Schedule of future amortization of intangible assets	Schedule of future amortization of intangible assets Calendar Year Amount 2024 $ 548,120 2025 2,192,484 2026 2,192,484 2027 2,192,484 2028 2,192,484 2029 822,182 Total Intangible Asset Amortization $ 10,140,238

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of notes payable related to financing agreements	Schedule of notes payable related to financing agreements September 30, 2024 December 31, 2023 Notes Payable Principal Interest Principal Interest Third Party - Insurance Note 1 $ 77,095 8.25 % $ 39,968 8.00 % Third Party - Insurance Note 2 10,194 — 2,008 — Third Party - Insurance Note 3 41,115 — — — Total $ 128,404 — $ 41,976 —
Schedule of promissory notes payable	Schedule of promissory notes payable Notes Payable $ 2,200,000 Unamortized Discount (552,005 ) Notes Payable, net $ 1,647,995
Schedule of assumptions in determining	Schedule of assumptions in determining Upon Grant Upon Exercise 21 April Fund LP 21 April Fund Ltd 21 April Fund LP 21 April Fund Ltd Date of Grant (Exercise) July 22, 2024 July 22, 2024 September 19, 2024 September 19, 2024 Note Value $ — $ — $ — $ — Issue (Exercise) Stock Price $ 2.77 $ 2.77 $ 2.49 $ 2.49 Strike $ 3.00 $ 3.00 $ 2.61 2.61 Share Equivalents 92,727 207,273 92,727 207,273 Strike Price discount 0 % 0 % 0 % 0 % Expected Remaining Term (Years) 5.00 5.00 4.84 4.84 Historical Volatility 52 % 52 % 58 % 58 % Expected Volatility 100 % 100 % 58 % 58 % Dividend Yield 0 % 0 % 0 % 0 % Annual Rate of Quarterly Dividends $ 0.000 $ 0.000 $ 0.000 $ 0.000 Discount Rate - Bond Equivalent Yield 4.170 % 4.170 % 3.480 % 3.480 %

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of supplemental information related to leases	Schedule of supplemental information related to leases Nine Months Ended September 30, 2024 2023 Lease cost: Operating lease cost $ 586,228 $ 586,228 Short-term lease cost $ 16,477 $ 56,052 Other information: Operating cash outflow used for operating leases $ 583,101 $ 505,664 Weighted average discount rate 9.0 % 9.0 % Weighted average remaining lease term 7.75 8.6
Schedule of future minimum lease payments due under the operating lease	Schedule of future minimum lease payments due under the operating lease Amount Calendar year: 2024 $ 195,986 2025 798,556 2026 818,518 2027 838,984 2028 859,856 Thereafter 3,183,571 Total undiscounted future minimum lease payments 6,695,471 Less: Impact of discounting (1,940,223 ) Total present value of operating lease obligations 4,755,248 Current portion, operating lease obligation (793,658 ) Operating lease obligations, less current portion $ 3,961,590

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of black scholes option pricing model using assumptions	Schedule of black scholes option pricing model using assumptions At September 30, 2024 Grant date share price $ 2.70 2.96 Grant date exercise price $ 2.30 2.52 Expected term 0.25 0.5 years Expected volatility 62.00 % - 67.3% Risk-free rate 4.38 % - 5.26% Expected dividend rate 0 %
Schedule of stock-based compensation	Schedule of stock-based compensation For the Nine Months ended Cash from employee withholdings used to purchase ESPP shares $ 123,359 Stock based compensation expense 54,833 Total charges related to the Employee Stock Purchase Plan $ 178,192 For the Nine Months ended September 30, 2023 Cash from employee withholdings used to purchase ESPP shares $ 117,048 Stock based compensation expense 98,945 Total charges related to the Employee Stock Purchase Plan $ 215,993
Schedule of non-plan options	Schedule of non-plan options Weighted Average Outstanding at December 31, 2022 926,266 $ 5.74 3.3 $ — Granted 463,117 $ 4.22 4.35 $ — Forfeited (1,608 ) $ 14.00 — $ — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Exercisable at December 31, 2023 581,324 $ 5.38 1.8 $ — Outstanding at December 31, 2023 1,387,775 $ 5.23 3.0 $ — Granted — $ — — $ — Exercised/Forfeited/Expired (128,709 ) $ 4.79 — $ — Outstanding at September 30, 2024 1,259,066 $ 5.27 2.2 $ — Exercisable at September 30, 2024 850,629 $ 5.44 1.6 $ —
Schedule of warrants	Schedule of warrants Weighted O utstanding at December 31, 2022 147,591 $ 8.63 0.8 $ — Warrants expired, forfeited, cancelled or exercised (102,947 ) $ — — $ — Warrants issued — $ — — $ — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 $ — Exercisable at December 31, 2023 44,644 $ 7.70 0.7 $ — Outstanding at December 31, 2023 44,644 $ 7.70 0.7 $ — Warrants issued 300,000 $ 3.00 5.0 $ — Warrants expired, forfeited, cancelled or exercised (344,644 ) $ — — $ — Outstanding at September 30, 2024 — $ — — $ — Exercisable at September 30, 2024 — $ — — $ —

REVENUE AND CONTRACT ACCOUNTI_2

REVENUE AND CONTRACT ACCOUNTING (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of contracts assets on uncompleted contracts	Schedule of contracts assets on uncompleted contracts September 30, 2024 December 31, 2023 Cumulative revenues recognized $ 9,889,995 $ 8,820,256 Less: Billings or cash received (9,280,987 ) (8,178,309 ) Contract assets $ 609,008 $ 641,947
Schedule of contract liabilities on uncompleted contracts	Schedule of contract liabilities on uncompleted contracts September 30, 2024 December 31, 2023 Billings and/or cash receipts on uncompleted contracts $ 1,264,658 $ 1,264,658 Less: Cumulative revenues recognized (856,743 ) (199,976 ) Contract liabilities, technology systems, current 407,915 1,064,682 Contract liabilities, services and consulting, current 2,574,298 601,561 Total contract liabilities, current $ 2,982,213 $ 1,666,243 Total contract liabilities, services and consulting, non-current $ 7,947,755 $ —
Schedule of balance in contract liabilities	Schedule of balance in contract liabilities Calendar Year Amount 2024 $ 548,120 2025 2,192,484 2026 2,192,484 2027 2,192,484 2028 2,192,484 2029 822,182 Total Contract Liabilities $ 10,140,238
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 Major Goods and Service Lines Turnkey Projects $ 1,686,456 $ — $ — $ — $ 1,686,456 Maintenance and Support 913,228 505,982 — — 1,419,210 Algorithms 133,244 — — — 133,244 $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 Timing of Revenue Recognition Goods transferred over time $ 1,686,456 $ — $ — $ — $ 1,686,456 Services transferred over time 1,046,472 505,982 — — 1,552,454 $ 2,732,928 $ 505,982 $ — $ — $ 3,238,910 For the Three Months Ended September 30, 2023 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 Major Goods and Service Lines Turnkey Projects $ 705,849 $ — $ — $ — $ 705,849 Maintenance and Support 627,707 19,220 — — 646,927 Algorithms — — — 178,147 178,147 $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 Timing of Revenue Recognition Goods transferred over time $ 705,849 $ — $ — $ — $ 705,849 Services transferred over time 627,707 19,220 — 178,147 825,074 $ 1,333,556 $ 19,220 $ — $ 178,147 $ 1,530,923 For the Nine Months Ended September 30, 2024 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 Major Goods and Service Lines Turnkey Projects $ 2,221,310 $ — $ — $ — $ 2,221,310 Maintenance and Support 2,556,512 505,982 — — 3,062,494 Algorithms 536,282 — — — 536,282 $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 Timing of Revenue Recognition Goods transferred over time $ 2,221,310 $ — $ — $ — $ 2,221,310 Services transferred over time 3,092,794 505,982 — — 3,598,776 $ 5,314,104 $ 505,982 $ — $ — $ 5,820,086 For the Nine Months Ended September 30, 2023 Segments Rail Commercial Government Artificial Intelligence Total Primary Geographical Markets North America $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270 Major Goods and Service Lines Turnkey Projects $ 3,390,555 $ 13,552 $ — $ — $ 3,404,107 Maintenance and Support 1,856,736 76,880 11,353 — 1,944,969 Algorithms — — — 596,194 596,194 $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270 Timing of Revenue Recognition Goods transferred over time $ 3,390,555 $ 13,552 $ — $ — $ 3,404,107 Services transferred over time 1,856,736 76,880 11,353 596,194 2,541,163 $ 5,247,291 $ 90,432 $ 11,353 $ 596,194 $ 5,945,270

SALE OF ASSETS (Tables)

SALE OF ASSETS (Tables)	9 Months Ended
	Sep. 30, 2024
Sale Of Assets
Schedule of note receivable	Schedule of note receivable September 30, 2024 Convertible note receivable $ 165,000 Unamortized discount (5,625 ) Convertible note receivable, net $ 159,375

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value of financial instruments)	9 Months Ended
	Sep. 30, 2024 USD ($)
Accounting Policies [Abstract]
Fire valu financial liabilities, at begining
Issuance of Warrant liabilities	625,606
Change in fair value	(245,980)
Gain on extinguishment	(379,626)
Fire valu financial liabilities, at ending

NATURE OF OPERATIONS AND SUMM_5

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Federally insured limits	$ 119,570
Share-Based Payment Arrangement, Option [Member]
Product Information [Line Items]
Number of incentive stock options	1,259,066	1,217,775
Common Stock [Member]
Product Information [Line Items]
Outstanding warrants	0	80,091
Series D Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable upon conversion	466,334	433,000
Series E Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable upon conversion	5,220,309	1,333,334
Series F Convertible Preferred Stock [Member]
Product Information [Line Items]
Common shares issuable upon conversion		806,452
Customer 1 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	41%	55%
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	52%		52%
Customer 2 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	29%	29%
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	32%		25%
Customer 3 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage	11%
Customer 3 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration risk, percentage			14%
Three Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | UNITED STATES
Product Information [Line Items]
Concentration risk, percentage	43%	37%

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Jul. 22, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net loss		$ 1,401,663	$ 2,947,736	$ 7,358,143	$ 8,080,819
Cash used in operating activities				6,200,147	$ 5,637,072
Working capital deficit		1,600,154		1,600,154
Accumulated deficit		70,961,695		70,961,695		$ 63,603,552
Notes payable		$ 2,200,000		$ 2,200,000
Two Institutional Investors [Member] | Secured Promissory Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Notes payable	$ 2,200,000
Maturity date	Dec. 31, 2025
Interest rate	10%
ATM Sales Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of stock price		$ 0.001		$ 0.001
Sale of stock aggregate offering price				$ 7,500,000

INTANGIBLE ASSET (Details - Int

INTANGIBLE ASSET (Details - Intangible Asset) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Asset, gross	$ 11,161,428
Accumulated Amortization	(1,021,190)
Intangible Asset, net	$ 10,140,238

INTANGIBLE ASSET (Details - Fut

INTANGIBLE ASSET (Details - Future amortization) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 548,120
2025	2,192,484
2026	2,192,484
2027	2,192,484
2028	2,192,484
2029	822,182
Total Intangible Asset Amortization	$ 10,140,238

INTANGIBLE ASSET (Details Narra

INTANGIBLE ASSET (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	May 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible asset fair value		$ 11,161,428		$ 11,161,428
Amortization of intangible asset				1,021,190	$ 0
Revenues		$ 3,238,910	$ 1,530,923	$ 5,820,086	$ 5,945,270
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset fair value	$ 11,161,428
Term of contract	5 years
Amortization of intangible asset	$ 199,008
Revenues	199,008
Deferred revenue	11,161,428
Recognized deferred revenue	$ 199,008
Term of deferred revenue	5 years

DEBT (Details - Notes payable f

DEBT (Details - Notes payable financing agreements) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Notes payable, Principal	$ 128,404	$ 41,976
Third Party - Insurance Note 1 [Member]
Short-Term Debt [Line Items]
Notes payable, Principal	$ 77,095	$ 39,968
Notes payable, Interest	8.25%	8%
Third Party - Insurance Note 2 [Member]
Short-Term Debt [Line Items]
Notes payable, Principal	$ 10,194	$ 2,008
Third Party - Insurance Note 3 [Member]
Short-Term Debt [Line Items]
Notes payable, Principal	$ 41,115

DEBT (Details - Promissory Note

DEBT (Details - Promissory Notes Payable)	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
Notes Payable	$ 2,200,000
Unamortized Discount	(552,005)
Notes Payable, net	$ 1,647,995

DEBT (Details - Assumptions in

DEBT (Details - Assumptions in determining the fair value of the warrant liabilities)	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Class of Warrant or Right [Line Items]
Note Value	$ 2,200,000
Upon Grant [Member] | N 21 April Fund L P [Member]
Class of Warrant or Right [Line Items]
Note Value
Issue (Exercise) Stock Price | $ / shares	$ 2.77
Strike | $ / shares	$ 3
Share Equivalents | shares	92,727
Strike Price discount	0%
Expected Remaining Term (Years)	5 years
Historical Volatility	52%
Expected Volatility	100%
Dividend Yield	0%
Annual Rate of Quarterly Dividends	$ 0
Discount Rate - Bond Equivalent Yield	4.17%
Upon Grant [Member] | N 21 April Fund Ltd [Member]
Class of Warrant or Right [Line Items]
Note Value
Issue (Exercise) Stock Price | $ / shares	$ 2.77
Strike | $ / shares	$ 3
Share Equivalents | shares	207,273
Strike Price discount	0%
Expected Remaining Term (Years)	5 years
Historical Volatility	52%
Expected Volatility	100%
Dividend Yield	0%
Annual Rate of Quarterly Dividends	$ 0
Discount Rate - Bond Equivalent Yield	417%
Upon Exercise [Member] | N 21 April Fund L P [Member]
Class of Warrant or Right [Line Items]
Note Value
Issue (Exercise) Stock Price | $ / shares	$ 2.49
Strike | $ / shares	$ 2.61
Share Equivalents | shares	92,727
Strike Price discount	0%
Expected Remaining Term (Years)	4 years 10 months 2 days
Historical Volatility	58%
Expected Volatility	58%
Dividend Yield	0%
Annual Rate of Quarterly Dividends	$ 0
Discount Rate - Bond Equivalent Yield	3.48%
Upon Exercise [Member] | N 21 April Fund Ltd [Member]
Class of Warrant or Right [Line Items]
Note Value
Issue (Exercise) Stock Price | $ / shares	$ 2.49
Strike | $ / shares	$ 2.61
Share Equivalents | shares	207,273
Strike Price discount	0%
Expected Remaining Term (Years)	4 years 10 months 2 days
Historical Volatility	58%
Expected Volatility	58%
Dividend Yield	0%
Annual Rate of Quarterly Dividends	$ 0
Discount Rate - Bond Equivalent Yield	3.48%

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)				1 Months Ended		3 Months Ended		9 Months Ended
	Apr. 15, 2024	Feb. 03, 2024	Apr. 15, 2023	Sep. 19, 2024	Jul. 22, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Short-Term Debt [Line Items]
Notes payable						$ 2,200,000		$ 2,200,000
Principal amounts						165,000		165,000
Fair Value Adjustment of Warrants						245,980		245,980
Gain on extinguishment of warrant liabilities						379,626		379,626
Amortization of debt discount								73,601
Secured Promissory Notes [Member]
Short-Term Debt [Line Items]
Accrued interest						42,794		42,794
Warrants purchase				344,644
Warrants exercisable per share				$ 2.61
Warrant exercised				44,644
Share issued				344,644
Fair value of warrant				$ 379,626	$ 625,606
Secured Promissory Notes [Member] | N 21 April Fund L P [Member]
Short-Term Debt [Line Items]
Principal amounts					$ 1,520,000
Interest rate					10%
Maturity date					Dec. 30, 2025
Warrants purchase				104,647	92,727
Warrants exercisable per share					$ 3
Warrant term					5 years
Secured Promissory Notes [Member] | N 21 April Fund Ltd [Member]
Short-Term Debt [Line Items]
Principal amounts					$ 680,000
Interest rate					10%
Maturity date					Dec. 30, 2025
Warrants purchase				239,997	207,273
Warrants exercisable per share				$ 2.61	$ 3
Warrant term					5 years
Third Party - Insurance Note 1 [Member]
Short-Term Debt [Line Items]
Purchase of insurance policy	$ 154,338		$ 142,734
Annual interest rate	8.25%		8%
Monthly installments	$ 16,023		$ 13,501
Notes payable						77,095		77,095		$ 39,968
Third Party - Insurance Note 2 [Member]
Short-Term Debt [Line Items]
Purchase of insurance policy		$ 24,480
Monthly installments		2,040
Notes payable						10,194		10,194		2,008
Third Party - Insurance Note 2 [Member] | Renewed Agreement [Member]
Short-Term Debt [Line Items]
Purchase of insurance policy		24,140
Monthly installments		2,012
Third Party - Insurance Note 3 [Member]
Short-Term Debt [Line Items]
Purchase of insurance policy		245,798
Monthly installments		20,166
Notes payable						$ 41,115		$ 41,115		$ 0
Down payment paid		$ 84,473

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details - Supplemental information related to leases) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 586,228	$ 586,228
Short-term lease cost	16,477	56,052
Operating cash outflow used for operating leases	$ 583,101	$ 505,664
Weighted average discount rate	9%	9%
Weighted average remaining lease term	7 years 9 months	8 years 7 months 6 days

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details - Future minimum lease payments) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
2024	$ 195,986
2025	798,556
2026	818,518
2027	838,984
2028	859,856
Thereafter	3,183,571
Total undiscounted future minimum lease payments	6,695,471
Less: Impact of discounting	(1,940,223)
Total present value of operating lease obligations	4,755,248
Current portion, operating lease obligation	(793,658)	$ (779,087)
Operating lease obligations, less current portion	$ 3,961,590	$ 4,228,718

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details Narrative)	Jul. 26, 2021 USD ($) ft²	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Area of lease | ft²	40,000
Accumulated amortization	$ 4,980,104	$ 4,117,471	$ 4,373,155
Rentable space | ft²	30,000
Security deposit payment	$ 600,000
Security deposit value	$ 50,000	$ 500,000	$ 550,000

STOCKHOLDERS' EQUITY (Details -

STOCKHOLDERS' EQUITY (Details - Assumptions) - Share-Based Payment Arrangement, Option [Member]	9 Months Ended
	Sep. 30, 2024 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected dividend rate	0%
Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date share price	$ 2.70
Grant date exercise price	$ 2.30
Expected term	3 months
Expected volatility	62%
Risk-free rate	4.38%
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date share price	$ 2.96
Grant date exercise price	$ 2.52
Expected term	6 months
Expected volatility	67.30%
Risk-free rate	5.26%

STOCKHOLDERS' EQUITY (Details_2

STOCKHOLDERS' EQUITY (Details - Employee stock purchase plan) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Equity [Abstract]
Cash from employee withholdings used to purchase ESPP shares	$ 123,359	$ 117,048
Stock based compensation expense	54,833	98,945
Total charges related to the Employee Stock Purchase Plan	$ 178,192	$ 215,993

STOCKHOLDERS' EQUITY (Details_3

STOCKHOLDERS' EQUITY (Details - Non plan options) - Share-Based Payment Arrangement, Option [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding beginning balance	1,387,775	926,266
Weighted average exercise price, Outstanding beginning balance	$ 5.23	$ 5.74
Weighted average remaining contractual term (Years)	2 years 2 months 12 days	3 years	3 years 3 months 18 days
Aggregate intrinsic value, Outstanding beginning balance
Number of options, Granted		463,117
Weighted average exercise price, Granted		$ 4.22
Weighted average remaining contractual term (Years), Granted		4 years 4 months 6 days
Number of options, Exercised/Forfeited/Expired	(128,709)	(1,608)
Weighted average exercise price, Exercised/forfeited/expired	$ 4.79	$ 14
Outstanding ending balance	1,259,066	1,387,775	926,266
Weighted average exercise price, Outstanding ending balance	$ 5.27	$ 5.23	$ 5.74
Aggregate intrinsic value, Outstanding ending balance
Number of options, Exercisable	850,629	581,324
Weighted average exercise price, Exercisable	$ 5.44	$ 5.38
Weighted average remaining contractual term (Years), Exercisable	1 year 7 months 6 days	1 year 9 months 18 days
Aggregate intrinsic value, Exercisable

STOCKHOLDERS' EQUITY (Details_4

STOCKHOLDERS' EQUITY (Details - Warrants) - Warrant [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Outstanding beginning balance	44,644	147,591
Weighted average exercise price, outstanding beginning balance	$ 7.70	$ 8.63
Weighted average remaining contractual term (years)	8 months 12 days	8 months 12 days	9 months 18 days
Aggregate intrinsic value, outstanding beginning balance
Number of warrants, warrants expired, forfeited, cancelled or exercised	(344,644)	(102,947)
Weighted average exercise price, warrants expired, forfeited, cancelled or exercised
Number of warrants, warrants issued	300,000
Weighted average remaining contractual term Warrants issued	5 years
Weighted average exercise price, warrants issued	$ 3
Outstanding ending balance		44,644	147,591
Weighted average exercise price, outstanding ending balance		$ 7.70	$ 8.63
Aggregate intrinsic value, outstanding ending balance
Number of warrants, exercisable		44,644
Weighted average exercise price, exercisable		$ 7.70
Weighted average remaining contractual term (years), exercisable		8 months 12 days
Aggregate intrinsic value, exercisable

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)																						1 Months Ended													3 Months Ended							6 Months Ended		9 Months Ended
	Jul. 15, 2024	Jul. 12, 2024	Jul. 11, 2024	Jul. 05, 2024	Jul. 02, 2024	Jun. 25, 2024	Jun. 18, 2024	Jun. 17, 2024	Jun. 13, 2024	Jun. 12, 2024	May 17, 2024	May 07, 2024	Apr. 30, 2024	Apr. 23, 2024	Nov. 09, 2023	Aug. 02, 2023	Mar. 27, 2023	Oct. 29, 2022	Sep. 30, 2022	May 12, 2021	Feb. 26, 2021	Sep. 30, 2024	Sep. 19, 2024	Jul. 30, 2024	Jul. 29, 2024	Jul. 26, 2024	Jul. 25, 2024	Jul. 24, 2024	Jul. 22, 2024	Jul. 18, 2024	Jul. 17, 2024	Jul. 16, 2024	May 31, 2024	Jan. 31, 2022	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Nov. 10, 2023	Sep. 28, 2022
Class of Stock [Line Items]
Preferred stock, shares designated																						9,441,000													9,441,000									9,441,000		9,441,000
Preferred stock, shares authorized																						10,000,000													10,000,000									10,000,000		10,000,000
Preferred stock, par value																						$ 0.001													$ 0.001									$ 0.001		$ 0.001
Conversion price																						$ 0.003													$ 0.003									$ 0.003
Stock issued for services, value																																			$ 42,500	$ 42,500	$ 37,500	$ 40,565	$ 32,500	$ 32,500
Employee contributions																																												$ 87,348	$ 117,048
Secured Promissory Notes [Member]
Class of Stock [Line Items]
Additional shares																							344,644
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right																							344,644
Class of Warrant or Right, Exercise Price of Warrants or Rights																							$ 2.61
Warrants exercised																							899,521
Secured Promissory Notes [Member] | N 21 April Fund L P [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right																							104,647						92,727
Class of Warrant or Right, Exercise Price of Warrants or Rights																													$ 3
Secured Promissory Notes [Member] | N 21 April Fund Ltd [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right																							239,997						207,273
Class of Warrant or Right, Exercise Price of Warrants or Rights																							$ 2.61						$ 3
Employee Stock Purchase Plan [Member]
Class of Stock [Line Items]
Stock issued under the Employee Stock Purchase Plan, shares																																										38,041	65,561
Employee contributions																																										$ 87,348	$ 117,048
Purchase price per share																																				$ 2.30			$ 1.79			$ 2.30	$ 1.79
Plan, term																																									10 years
Plan, description																																										The ESPP allows eligible employees to purchase shares of the Company's common stock at a discounted price, through payroll deductions from a minimum of 1% and up to 25% of their eligible compensation up to a maximum of $25,000 or the IRS allowable limit per calendar year.
Fair market value percentage																																									85%
Maximum aggregate number of shares of common stock																																				1,000,000						1,000,000
Plan 2021 [Member]
Class of Stock [Line Items]
Number of shares issued, shares																				1,000,000
Number of incentive stock options																						709,408													709,408									709,408		788,117
Plan 2016 [Member]
Class of Stock [Line Items]
Number of incentive stock options																						269,658													269,658									269,658		269,658
Non Plan [Member]
Class of Stock [Line Items]
Number of incentive stock options																						280,000													280,000									280,000		330,000
At The Market [Member]
Class of Stock [Line Items]
Share price	$ 3	$ 3	$ 3.01		$ 3.01	$ 3.15	$ 3.03	$ 3.02	$ 3.15	$ 3.05												$ 3.01		$ 3.02	$ 3.07	$ 3.03	$ 3	$ 3.01	$ 3	$ 3.04	$ 3.08	$ 3			$ 3.01									$ 3.01
Number of shares issued, shares	4,400	400	300		700	15,610	1,534	400	9,747	11,239												819		2,267	3,250	5,000	300	200	400	2,001	6,677	1,800			28,514	38,530
Total net proceeds	$ 12,807	$ 1,157	$ 868		$ 2,036	$ 47,004	$ 4,507	$ 1,165	$ 29,626	$ 33,261												$ 2,385		$ 6,638	$ 9,682	$ 14,670	$ 866	$ 577	$ 1,157	$ 5,896	$ 19,910	$ 5,231			$ 81,448	$ 115,563
Stock issued for services , shares																																			14,433
Stock issued for services, value																																			$ 42,500
Weighted average price per share																						$ 2.95													$ 2.95									$ 2.95
Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Option exercise																																										38,041	65,561
Total compensation cost for stock options																						$ 186,277													$ 186,277									$ 186,277
Number of incentive stock options																						1,259,066													1,259,066						926,266			1,259,066		1,387,775
Number of incentive stock options exercisable																						850,629													850,629									850,629
Sales Agreement [Member]
Class of Stock [Line Items]
Sale of Stock, Consideration Received on Transaction											$ 7,500,000
Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares																																			14,433	15,041	8,655	7,910	5,645	12,463
Stock issued for services, value																																			$ 14	$ 15	$ 9	$ 8	$ 6	$ 12
Four Directors [Member] | Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares																																					8,655
Stock issued for services, value																																					$ 37,500
Weighted average price per share																						$ 4.33													$ 4.33									$ 4.33
Three Directors [Member] | Common Stock [Member]
Class of Stock [Line Items]
Stock issued for services , shares																																				15,041		7,910	5,645	12,463
Stock issued for services, value																																				$ 42,500		$ 40,565	$ 32,500	$ 32,500
Weighted average price per share																																				$ 2.83		$ 5.13	$ 5.76	$ 2.61		$ 2.83	$ 5.76		$ 5.13
Employees and Directors [Member]
Class of Stock [Line Items]
Stock-based compensation expense																																												$ 226,575	$ 400,645
Convertible Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares designated																						15,000													15,000									15,000		15,000
Preferred stock, par value																						$ 1,000													$ 1,000									$ 1,000		$ 1,000
Converted value																																												$ 1,000
Conversion price																						$ 7													$ 7									$ 7
Preferred stock, shares issued																						0													0									0		0
Preferred stock, shares outstanding																						0													0									0		0
Preferred stock, conversion price per share																						$ 7													$ 7									$ 7		$ 7
Convertible Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares designated																						5,000													5,000									5,000		5,000
Preferred stock, par value																						$ 1,000													$ 1,000									$ 1,000		$ 1,000
Preferred stock, shares issued																						0													0									0		0
Preferred stock, shares outstanding																						0													0									0		0
Preferred stock voting rights																																												Each share of Series C Convertible Preferred Stock had 172 votes
Preferred stock, conversion price per share																						$ 5.50													$ 5.50									$ 5.50		$ 5.50
Series C preferred converted to common stock shares																																		454,546
Convertible Series C Preferred Stock [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from convertible preferred stock																					$ 4,500,000
Convertible Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares designated																						4,000													4,000									4,000		4,000
Preferred stock, par value																						$ 1,000													$ 1,000									$ 1,000		$ 1,000		$ 1,000
Converted value				$ 120,000								$ 75,000	$ 350,000	$ 225,000
Preferred stock, shares issued																						1,399													1,399									1,399		1,299
Preferred stock, shares outstanding																						1,399													1,399									1,399		1,299
Preferred stock voting rights																																												Each share of Series D Convertible Preferred Stock has 333 votes
Preferred stock, conversion price per share																						$ 3													$ 3									$ 3		$ 3
Share price																						1,000													1,000									1,000
Preferred stock conversion price				$ 3								$ 3	$ 3	$ 3								$ 3													$ 3									$ 3
Number of shares issued, shares																																												870
Total net proceeds																																												$ 870,000
Converted shares													350	225
Convertible Series D Preferred Stock [Member] | One Shareholder [Member]
Class of Stock [Line Items]
Converted shares													100	147
Converted shares issued				40,000								25,000	33,334	49,000
Convertible Series D Preferred Stock [Member] | Two Shareholders [Member]
Class of Stock [Line Items]
Converted shares													250	78
Converted shares issued													83,334	26,000
Convertible Series D Preferred Stock [Member] | Shareholders [Member]
Class of Stock [Line Items]
Converted shares				120								75
Convertible Series D Preferred Stock [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Preferred stock, shares issued																		300	999
Proceeds from convertible preferred stock																		$ 300,000	$ 999,000
Series E Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares outstanding													650																				650
Converted shares													216,668																				216,668
Convertible Series E Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares designated																						30,000													30,000									30,000		30,000
Preferred stock, par value															$ 1,000		$ 1,000					$ 1,000													$ 1,000									$ 1,000		$ 1,000
Preferred stock, shares issued																	4,000					13,625													13,625									13,625		11,500
Preferred stock, shares outstanding																						13,625													13,625									13,625		11,500
Preferred stock voting rights																																												Each share of Series E Convertible Preferred Stock has 333 votes
Preferred stock, conversion price per share																						$ 2.61													$ 2.61									$ 2.61		$ 3
Proceeds from convertible preferred stock															$ 2,500,000
Share price																						1,000													1,000									1,000
Preferred stock conversion price																						$ 3													$ 3									$ 3			$ 3
Number of shares issued, shares																																												2,125
Total net proceeds																																												$ 2,125,002
Preferred convertible preferred stock, Shares															2,500
Additional shares																																															7,500
Exchange of shares																																															5,000
Convertible Series E Preferred Stock [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from convertible preferred stock																	$ 4,000,000
Convertible Series F Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares designated																						5,000													5,000									5,000		5,000
Preferred stock, par value																						$ 1,000													$ 1,000									$ 1,000		$ 1,000	$ 6.20
Preferred stock, shares issued																						0													0									0		0
Preferred stock, shares outstanding																						0													0									0		0
Preferred stock voting rights																																												Each share of Series F Preferred Stock had 161 votes
Preferred stock, conversion price per share																						$ 6.20													$ 6.20									$ 6.20		$ 6.20
Proceeds from convertible preferred stock																$ 5,000,000
Preferred stock conversion price																						$ 6.20													$ 6.20									$ 6.20
Additional shares																																															2,500
Number of shares exchanged																																															5,000
Number of shares cancelled																																															5,000
Exchange of shares																																															5,000

REVENUE AND CONTRACT ACCOUNTI_3

REVENUE AND CONTRACT ACCOUNTING (Details - Contract assets) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Cumulative revenues recognized	$ 9,889,995	$ 8,820,256
Less: Billings or cash received	(9,280,987)	(8,178,309)
Contract assets	$ 609,008	$ 641,947

REVENUE AND CONTRACT ACCOUNTI_4

REVENUE AND CONTRACT ACCOUNTING (Details - Contract liabilities) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Billings and/or cash receipts on uncompleted contracts	$ 1,264,658	$ 1,264,658
Less: Cumulative revenues recognized	(856,743)	(199,976)
Contract liabilities, technology systems, current	407,915	1,064,682
Contract liabilities, services and consulting, current	2,574,298	601,561
Total contract liabilities, current	2,982,213	1,666,243
Total contract liabilities, services and consulting, non-current	$ 7,947,755

REVENUE AND CONTRACT ACCOUNTI_5

REVENUE AND CONTRACT ACCOUNTING (Details - Contract liabilities agreement)	Sep. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
2024	$ 548,120
2025	2,192,484
2026	2,192,484
2027	2,192,484
2028	2,192,484
2029	822,182
Total Contract Liabilities	$ 10,140,238

REVENUE AND CONTRACT ACCOUNTI_6

REVENUE AND CONTRACT ACCOUNTING (Details - Disaggregated revenue) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 3,238,910	$ 1,530,923	$ 5,820,086	$ 5,945,270
Goods transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,686,456	705,849	2,221,310	3,404,107
Services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,552,454	825,074	3,598,776	2,541,163
Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,686,456	705,849	2,221,310	3,404,107
Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,419,210	646,927	3,062,494	1,944,969
Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue	133,244	178,147	536,282	596,194
Rail [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,732,928	1,333,556	5,314,104	5,247,291
Rail [Member] | Goods transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,686,456	705,849	2,221,310	3,390,555
Rail [Member] | Services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,046,472	627,707	3,092,794	1,856,736
Rail [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,686,456	705,849	2,221,310	3,390,555
Rail [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	913,228	627,707	2,556,512	1,856,736
Rail [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue	133,244		536,282
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue	505,982	19,220	505,982	90,432
Commercial [Member] | Goods transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue				13,552
Commercial [Member] | Services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue	505,982	19,220	505,982	76,880
Commercial [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue				13,552
Commercial [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue	505,982	19,220	505,982	76,880
Commercial [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member]
Disaggregation of Revenue [Line Items]
Revenue				11,353
Governments [Member] | Goods transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member] | Services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue				11,353
Governments [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue
Governments [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue				11,353
Governments [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member]
Disaggregation of Revenue [Line Items]
Revenue		178,147		596,194
Artificial Intelligence [Member] | Goods transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Services transferred over time [Member]
Disaggregation of Revenue [Line Items]
Revenue		178,147		596,194
Artificial Intelligence [Member] | Turnkey Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Maintenance And Support [Member]
Disaggregation of Revenue [Line Items]
Revenue
Artificial Intelligence [Member] | Algorithms [Member]
Disaggregation of Revenue [Line Items]
Revenue		178,147		596,194
North America [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,238,910	1,530,923	5,820,086	5,945,270
North America [Member] | Rail [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,732,928	1,333,556	5,314,104	5,247,291
North America [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue	505,982	19,220	505,982	90,432
North America [Member] | Governments [Member]
Disaggregation of Revenue [Line Items]
Revenue				11,353
North America [Member] | Artificial Intelligence [Member]
Disaggregation of Revenue [Line Items]
Revenue		$ 178,147		$ 596,194

REVENUE AND CONTRACT ACCOUNTI_7

REVENUE AND CONTRACT ACCOUNTING (Details Narrative) - USD ($)	Sep. 30, 2024	May 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Contract liabilities	$ 2,982,213		$ 1,666,243
Contract liabilities for technology systems			$ 656,767
Services and consulting recognized	582,877
Current contract liabilities	2,192,484
Non-current contract liabilities	$ 7,947,755
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Deferred revenue		$ 11,161,428
Recognized deferred revenue		$ 199,008

DEFINED CONTRIBUTION PLAN (Deta

DEFINED CONTRIBUTION PLAN (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Retirement Benefits [Abstract]
Cash contributions	$ 50,977	$ 162,415

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Related Party Transactions [Abstract]
Related party expenses	$ 48,257	$ 15,117
Accounts payable	$ 0		$ 33,812

SALE OF ASSETS (Details)

SALE OF ASSETS (Details)	Sep. 30, 2024 USD ($)
Sale Of Assets
Convertible note receivable	$ 165,000
Unamortized discount	(5,625)
Convertible note receivable, net	$ 159,375

SALE OF ASSETS (Details Narrati

SALE OF ASSETS (Details Narrative)	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Sale Of Assets
Principal amount | $	$ 165,000
Original issue discount	10%
Conversion price | $ / shares	$ 0.003
Common stock shares | shares	55,000,000
Purchase of common stock warrants | shares	55,000,000
Exercise price | $ / shares	$ 0.01
Sale of asset | $	$ 150,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)													1 Months Ended												3 Months Ended
	Nov. 13, 2024	Oct. 08, 2024	Oct. 02, 2024	Jul. 15, 2024	Jul. 12, 2024	Jul. 11, 2024	Jul. 02, 2024	Jun. 25, 2024	Jun. 18, 2024	Jun. 17, 2024	Jun. 13, 2024	Jun. 12, 2024	Oct. 24, 2024	Oct. 16, 2024	Sep. 30, 2024	Jul. 30, 2024	Jul. 29, 2024	Jul. 26, 2024	Jul. 25, 2024	Jul. 24, 2024	Jul. 22, 2024	Jul. 18, 2024	Jul. 17, 2024	Jul. 16, 2024	Sep. 30, 2024	Jun. 30, 2024
At The Market [Member]
Subsequent Event [Line Items]
Number of shares issued, shares				4,400	400	300	700	15,610	1,534	400	9,747	11,239			819	2,267	3,250	5,000	300	200	400	2,001	6,677	1,800	28,514	38,530
Share price				$ 3	$ 3	$ 3.01	$ 3.01	$ 3.15	$ 3.03	$ 3.02	$ 3.15	$ 3.05			$ 3.01	$ 3.02	$ 3.07	$ 3.03	$ 3	$ 3.01	$ 3	$ 3.04	$ 3.08	$ 3	$ 3.01
Total net proceeds				$ 12,807	$ 1,157	$ 868	$ 2,036	$ 47,004	$ 4,507	$ 1,165	$ 29,626	$ 33,261			$ 2,385	$ 6,638	$ 9,682	$ 14,670	$ 866	$ 577	$ 1,157	$ 5,896	$ 19,910	$ 5,231	$ 81,448	$ 115,563
Subsequent Event [Member] | At The Market [Member]
Subsequent Event [Line Items]
Number of shares issued, shares	279,534
Share price	$ 3.92
Total net proceeds	$ 1,062,604
Subsequent Event [Member] | Master Lease Agreement [Member]
Subsequent Event [Line Items]
Lease description														The Master Lease provides for monthly payments over 66 months starting December 10, 2024. The first six payments shall each be $3,900.00 (or $1,300.00 per unit). For months seven through 66 (or any portion thereof), the monthly payments shall each be $43,981.38 (or $14,660.46 per unit). The final payment is due June 10, 2030, and upon payment in full of all the payments due under the Master Lease the Company will then purchase the Data Centers for $1.00.
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Number of shares issued		27,970	19,922										33,334
Subsequent Event [Member] | Series E Preferred Stock [Member]
Subsequent Event [Line Items]
Number of shares converted		73	52
Subsequent Event [Member] | Series D Preferred Stock [Member]
Subsequent Event [Line Items]
Number of shares converted													100