Duos Edge AI, Inc. ("Duos Edge AI"), a subsidiary of Duos Technologies Group, Inc. ("Duos" or the "Company") (NASDAQ:DUOT), today announced that it has executed a non-binding term sheet with 0Lat LLC ("Zero Latency") outlining a proposed structured lease covering all fifteen of the Company's edge data center ("EDC") sites across Texas and Georgia, representing 225 cabinets in aggregate (the "Transaction").

The proposed Transaction supports the growth of Zero Latency's distributed compute operations. Subject to completion of due diligence and site-level readiness, the Duos Edge AI portfolio is expected to provide backbone capacity for Zerogrid, Zero Latency's distributed inference network, which serves telecom, fiber, physical AI, and enterprise customers. Though this would be the parties' first transaction, their teams have collaborated on edge data center activities before, and both intend to extend that work across the edge AI segment.

Under the term sheet, the parties have entered a 90-day mutual exclusivity period during which they will complete confirmatory due diligence, including site-level verification of the Company's invested capital across the portfolio, and work to finalize the structure, pricing, and payment terms of a definitive transaction. The parties intend any definitive transaction to be structured as a true lease for accounting, tax, and financing purposes.