DUOS TECHNOLOGIES GROUP, INC.

On July 26, 2021, the Company entered a new operating lease agreement of office and warehouse combination space of 40,000 square feet with the lease commencing on November 1, 2021 and ending May 31, 2032, This additional space allows for resource growth and engineering efforts for operations before deploying to the field. The rent for the first twelve months of the term was calculated as rentable base space on 30,000 square feet. The rent is subject to an annual escalation of 2.5%, beginning December 1, 2022. The Company made a security deposit payment in the amount of $600,000 on July 26, 2021. The Company has applied the FASB issued ASU No. 2016-02 Leases (Topic 842) (“ASU 2016-02”) in the fourth quarter of 2021.

The Company now has a total of office and warehouse space of 40,000 square feet.

Rental expense for the office lease during 2025 and 2024 was $781,638 and $781,638, respectively.

We lease land at multiple locations to support the deployment and operation of our edge data centers, which are used to provide data infrastructure and colocation services to our customers. These ground leases are a critical component of our operating infrastructure, as they host revenue-generating assets, including modular data center units and related power and connectivity equipment.

Our ground leases generally have initial terms ranging from 5 to 10 years and may include renewal options, escalation provisions, and other customary terms. Certain leases are structured to align with the expected useful life of the underlying EDC assets and the duration of associated customer contracts.

We believe our existing facilities are adequate to meet our current operational needs. We continually evaluate our real estate footprint to support future growth and may enter into additional ground leases in connection with new EDC deployments.