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- **Revenue Surge**: Q3 2025 revenue up 112% to $6.88 million, driven by APR Energy's AMA and Edge Data Centers.
- **Profitability Milestone**: Achieved $491,000 adjusted EBITDA (7% margin) 1 quarter ahead of schedule.
- **Strategic Shift**: Transitioning from Rail to Edge Computing, with 15 modular data centers deployed by year-end.
- **New Business**: Duos Technology Solutions to provide infrastructure services for hyperscalers, contributing Q4 2025.
- **Financial Strength**: $35 million cash, no debt, and $50 million shareholders' equity.
- **Innovation**: Patented modular data centers with clean room design, targeting Tier 3/4 markets with no-water cooling.
- **Expansion**: First out-of-Texas deployment in Illinois, targeting education and healthcare sectors.


**【CEO Opening Remarks】**
- Announced a 112% YoY revenue increase to $6.88 million in Q3 2025, driven by the Asset Management Agreement (AMA) with APR Energy and Edge Data Center deployments.
- Achieved positive adjusted EBITDA of $491,000 in Q3, 1 quarter ahead of projections, with a 7% margin.
- CFO Adrian Goldfarb transitioning to strategic advisor, with Leah Brown succeeding as CFO.
- Strategic pivot to Edge Computing, targeting underserved Tier 3/4 markets with modular data centers requiring no water and minimal power (300kW).
- 15 Edge Data Centers deployed by year-end, with 6 operational, 4 being installed, and 5 in final stages.
- New business, Duos Technology Solutions, to provide infrastructure equipment and procurement services for hyperscalers.
- 5% equity stake in APR Energy valued at $7.2 million, expected to generate future profits.
- Restructuring Rail business to allocate resources to high-growth Edge Computing opportunities.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $6.88 million (112% YoY growth), with $5.15 million from recurring services and consulting under the AMA.
- Gross margin improved 174% to $2.52 million, driven by AMA revenue and 100% margin from equity interest in APR.
- Operating expenses increased 28% to $3.63 million, primarily due to stock-based compensation.
- Cash position strengthened to $35 million (422% YoY increase), with no debt and $50 million shareholders' equity.
- Backlog of $26 million, with $9.5 million expected to be recognized in Q4 2025.

**【President’s Strategic Updates】**
- Deployed 6 Edge Data Centers, with 4 more being installed and 5 in final stages, targeting Tier 3/4 markets like Illinois.
- Granted patent for modular data centers with clean room environment, reducing dust ingress and enabling SOC 2 compliance.
- New business, Duos Technology Solutions, to provide infrastructure equipment and procurement services, with contributions expected in Q4 2025.
- Modular design allows rapid deployment (120 days for 5MW sites) and scalability, addressing hyperscalers' need for distributed AI compute power.

**【Q&A Highlights】**
- AI/cloud demand driving Edge Data Center growth, with hyperscalers seeking alternatives to power-constrained large data centers.
- Supply chain constraints in small components (e.g., fiber, cabling) being mitigated by internal expertise and partnerships.
- 2026 outlook: AMA revenue decline offset by higher-margin Edge Computing and Duos Technology Solutions growth.
- Competitive advantage from patented modular design, no-water cooling, and focus on underserved markets.
- Illinois expansion underway, with education and healthcare sectors as key customers.


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