UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File No. 000-53285 IVEDA SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Delaware 20-2222203 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File No. 000-53285 IVEDA SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Delaware 20-2222203 (State or other ...

Revenue Sources and Financial Performance - Iveda's revenue primarily comes from Iveda Taiwan, which specializes in deploying and integrating video surveillance systems, contributing significantly to the company's financial performance since its acquisition in April 2011[17]. - Revenue from five key customers accounted for approximately 67% of total revenue for the year ended December 31, 2024, with Chunghwa Telecom contributing 18%[82]. - Iveda Taiwan accounted for 85% and 87% of the company's total revenue for the years ended December 31, 2024 and 2023, respectively[85]. - Revenue from Taiwan operations was $5.2 million in 2024, a decrease of $0.5 million or 9% from $5.6 million in 2023, attributed to the timing of large project completions[194]. - Consolidated net revenue for the year ended December 31, 2024, was $6.0 million, a decrease of $0.5 million or 7% compared to $6.5 million in 2023[193]. Market Opportunities and Growth Potential - The global smart city platforms market is projected to grow at a CAGR of 9% from 2026 to 2032, increasing from USD 208.8 billion to USD 416.1 billion, indicating a strong market opportunity for Iveda's offerings[20]. - The global IoT market, valued at USD 308.97 billion in 2020, expanded by 23.1% that year and is expected to surge to USD 1,854.76 billion by 2028, highlighting the growth potential for Iveda's IoT solutions[20]. - The International Data Corporation (IDC) projects global spending on artificial intelligence will double from USD 50.1 billion in 2020 to over USD 110 billion in 2024, indicating a growing demand for Iveda's AI-driven solutions[21]. Product Offerings and Innovations - IvedaAI enables accurate search across dozens to thousands of cameras in less than 1 second, maximizing efficiency and reducing operational costs for users[24]. - Iveda's smart power solutions, including smart meters and lighting control systems, are designed for various applications in office buildings, schools, and smart city projects, enhancing energy management[32]. - IvedaCare, launched in November 2022, provides a suite of wireless health and wellness devices for real-time monitoring, fall detection, and medication reminders, targeting the elderly care market[47]. - Iveda's smart drones are equipped with AI-based software for autonomous operation, capable of performing various industrial, commercial, and military applications, enhancing operational efficiency[42]. - The company offers a comprehensive suite of IoT technologies, including AI intelligent video search technology and smart sensors, to improve public safety and operational efficiency in urban environments[35]. - Iveda's Cerebro platform integrates multiple systems for centralized management, providing a unified interface for monitoring and controlling city infrastructure[33]. - The company plans to license its CEREBRO platform and sell IoT hardware to service providers, creating dual revenue streams from hardware sales and monthly licensing fees[185]. - Iveda's smart power technology includes a comprehensive management platform, Cerebro, which integrates energy, security, and safety applications[181]. Financial Challenges and Losses - For the year ended December 31, 2024, the company incurred a net loss of approximately $3.7 million, following a net loss of $4.0 million for the year ended December 31, 2023, with accumulated losses totaling around $51 million[73]. - The company has generated accumulated losses of approximately $53 million since inception, raising substantial doubt about its ability to continue as a going concern[72]. - Consolidated loss from operations for 2024 was $4.1 million, an increase of $0.1 million or 2% compared to $4.0 million in 2023[201]. - Net loss for the year ended December 31, 2024, was $4.0 million, a slight improvement from a net loss of $4.1 million in 2023[205]. Operational Risks and Challenges - The company relies on third-party manufacturers and suppliers for all hardware components, which poses risks such as reduced control over delivery schedules and quality assurance[89]. - The timing of revenue can vary significantly due to lengthy evaluation periods by customers, particularly governmental ones[97]. - The company faces risks associated with operating in Taiwan, including economic downturns and political instability, which may adversely affect revenue[100]. - Recent geopolitical issues, such as the conflict in Ukraine, could adversely impact the company's results of operations and financial condition[102]. - The company may need to decrease prices to remain competitive against rivals with greater resources[94]. - The company is subject to risks from changes in U.S. trade policy, which could disrupt its supply chain and increase costs[107]. - The company may face difficulties in integrating acquired businesses, which could disrupt operations and adversely affect financial results[113]. - Compliance with U.S. and foreign export controls and trade sanctions could harm international sales and adversely affect revenue[109]. Internal Controls and Governance - As of December 31, 2024, the company concluded that its internal control over financial reporting was not effective due to inadequate controls related to change management within the technology supporting financial reporting[133]. - The company recognizes the importance of maintaining effective internal controls to prevent fraud and ensure reliable financial reporting[134]. - The company plans to engage external auditors and consultants to assess its internal cybersecurity programs and compliance with applicable standards[154]. Stock and Market Performance - The company's common stock experienced significant price volatility, with a high bid of $8.05 and a low bid of $1.27 in the fourth quarter of fiscal year 2024[164]. - The company has never declared or paid any cash dividends on its common stock and anticipates retaining future earnings for business development and expansion[137]. - There were approximately 2,808,071 shares of common stock outstanding as of December 31, 2024, held by 96 shareholders of record[166]. - The trading market for the company's common stock may decline if securities analysts do not publish adequate or favorable research about the company[147]. - The company has limited trading activity in its securities, raising concerns about the sustainability of a regular trading market for its common stock[165]. Liquidity and Cash Flow - Cash and cash equivalents decreased to $1.6 million in the U.S. segment and $1.0 million in the Taiwan segment as of December 31, 2024, down from $2.9 million and $1.8 million respectively in 2023[206]. - Net cash used in operating activities increased to $4.4 million in 2024 from $3.3 million in 2023, primarily due to the net loss and various operational expenses[207]. - Net cash provided by financing activities rose to $2.3 million in 2024, compared to $1.0 million in 2023, mainly from a $1.7 million direct offering of Common Stock[209]. - The company has limited liquidity and has not established a stable revenue source to cover operating costs, making future financing critical[211]. - Approximately $35 million in net operating loss carryforwards available for federal income tax purposes will begin to expire in 2025, with no benefits recognized in 2024 or 2023[210]. - Substantially all cash is deposited in three financial institutions, with potential exposure exceeding insurance limits in both the U.S. and Taiwan[212]. - Accounts receivable are unsecured, posing a risk of uncollectibility without requiring collateral from customers[213].

Financial Performance - Net consolidated revenue for Q3 2024 was $2.40 million, a 175% increase from $0.87 million in Q3 2023[129] - For the nine months ended September 30, 2024, net consolidated revenue was $4.3 million, a 22% decrease from $5.5 million in the same period in 2023[137] - Net loss for Q3 2024 was $0.57 million, a 33% decrease from $0.85 million in Q3 2023[137] - Net loss for the nine months ended September 30, 2024, was $2.16 million, a slight increase of $0.02 million, or 1%, compared to $2.14 million in 2023[143] Revenue Composition - Equipment sales and installation revenue accounted for 97% of net revenue in Q3 2024, compared to 90% in Q3 2023[129] - Iveda Taiwan accounted for 93% of total revenue in 2023, up from 71% in 2022, highlighting its critical role in the company's revenue generation[123] Cost and Expenses - Total cost of revenue for Q3 2024 was $2.0 million, representing 83% of revenue with a gross margin of 17%[131] - Total cost of revenue for the nine months ended September 30, 2024, was $3.2 million, a 30% decrease from $4.6 million in the same period in 2023[138] - Operating expenses for the nine months ended September 30, 2024, increased by 6% to $3.4 million compared to $3.2 million in the same period in 2023[139] Operational Losses - Loss from operations decreased to $0.60 million in Q3 2024, down 34% from $0.91 million in Q3 2023[134] - Loss from operations for the nine months ended September 30, 2024, was $2.3 million, consistent with the same period in 2023[140] Cash Flow and Liquidity - Cash and cash equivalents decreased to $3.6 million as of September 30, 2024, down from $4.8 million as of December 31, 2023, due to operating losses[144] - Net cash used in operating activities for the nine months ended September 30, 2024, was ($3.2) million, compared to ($1.9) million in the same period of 2023[145] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $2.3 million, an increase from $0.9 million in 2023, primarily from the sale of common stock and pre-funded warrants[147] - The company has limited liquidity and has not established a stabilized source of revenue sufficient to cover operating costs, impacting its ability to continue as a going concern[149] Other Income and Tax - Other income for the nine months ended September 30, 2024, increased by $35,157, or 46%, totaling $111,657, primarily from interest income[141] - The company has approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025[148] Risk Factors - The company does not have any off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing and liquidity risks[154] - Inflation levels in the U.S. and Taiwan have not significantly impacted the company's operations[153] Technology and Product Offering - Iveda's AI technology includes features such as face recognition, license plate recognition, and public health analytics, enhancing its product offerings in the surveillance market[112]

Revenue Performance - Net consolidated revenue for Q1 2024 was $0.35 million, a decrease of 84% from $2.21 million in Q1 2023, primarily due to decreased equipment sales from Iveda Taiwan[119] - Service revenue accounted for 35% of net revenue in Q1 2024, compared to 9% in Q1 2023, while equipment sales and installation revenue made up 65% in Q1 2024, down from 91% in Q1 2023[119] Cost and Expenses - Total cost of revenue was $0.16 million in Q1 2024, representing 48% of revenue with a gross margin of 52%, compared to $1.72 million (78% of revenue; gross margin of 22%) in Q1 2023[121] - Operating expenses increased by 29% to $1.34 million in Q1 2024, up from $1.04 million in Q1 2023, primarily due to increased investor relations costs[122] Losses - Loss from operations rose to $1.16 million in Q1 2024, an increase of 111% from $0.55 million in Q1 2023, driven by decreased net revenues and higher costs[124] - Net loss for Q1 2024 was $1.1 million, a 101% increase from $0.55 million in Q1 2023, attributed to lower revenues and increased investor relations expenses[127] Cash Flow - Cash and cash equivalents decreased to $3.9 million as of March 31, 2024, down from $4.8 million at the end of 2023, due to operating losses[128] - Net cash used in operating activities was ($1.11) million in Q1 2024, compared to $0.17 million provided in Q1 2023, primarily due to the net loss[129] - Net cash used in investing activities was $0.19 million in Q1 2024, primarily for the development of additional IvedaAI platforms, similar to $0.18 million in Q1 2023[130] - Net cash provided by financing activities was $0.52 million in Q1 2024, down from $1.07 million in Q1 2023, mainly from bank loans in Taiwan[131] Tax and Loss Carryforwards - As of December 31, 2023, the company had approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025[133] - The company has approximately $5.0 million in state net operating loss carryforwards, which expire after five years[133] - The company has not recognized any benefit from federal net operating loss carryforwards in 2023 or 2022[133] Liquidity and Financial Relationships - The company reported limited liquidity and has not established a stabilized source of revenue sufficient to cover operating costs, indicating a dependency on increased sales or additional capital raising efforts[134] - The company does not believe that current levels of inflation in the United States or Taiwan have had a significant impact on its operations[138] - The company has no relationships with unconsolidated entities or financial partnerships that would expose it to off-balance sheet risks[139] - Substantially all cash is deposited in three financial institutions, with amounts in the U.S. sometimes exceeding the FDIC insurance limit[135] Accounts Receivable - Accounts receivable for the U.S.-based segment had no doubtful accounts receivable allowances for the three months ended March 31, 2024, and the year ended December 31, 2023[137] - Payment terms for the U.S.-based segment require prepayment for most products before shipment, while the Taiwan-based segment generally receives payment within one year of project commencement[137] - Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer, with no interest charged on past due receivables[137]

While some of the hype tied to artificial intelligence may not be sustainable, digital transformation technology specialist Iveda Solutions (NASDAQ:IVDA) could offer a more practical bet. IVDA stock appears to be printing a compelling bullish pattern in the charts. Therefore, it could be a short-term scalp or in my opinion a long-term investment.Iveda’s deep-learning video analytics software — or facial recognition tech — could have practically endless applications. Per the company’s public profile, Iveda c ...

Business Model and Revenue Streams - Iveda's business model transitioned from direct project-based sales to licensing its platform and selling IoT hardware, resulting in dual revenue streams from hardware sales and monthly licensing fees [15]. - Iveda's revenue model in the US involves licensing software to organizations with existing customer bases, facilitating hardware acquisition through third-party partners [45]. - Iveda Taiwan accounted for 87% of total revenue for the years ended December 31, 2023, compared to 79% in 2022 [77]. - Revenue from two customers out of 65 total customers represented approximately 48% of total revenue for the year ended December 31, 2023, with YOU MING HUEI CO. LTD contributing 25% and Chicony Power Technology Co Ltd contributing 23% [74]. - For the year ended December 31, 2023, the company recorded net consolidated revenue of $6.5 million, an increase of $2.0 million, or 45%, compared to $4.5 million in 2022 [193]. - Recurring service revenue for 2023 was $0.44 million, or 7% of net revenue, while equipment sales and installation revenue was $6.0 million, or 93% of net revenue [193]. - Iveda Taiwan has been a significant revenue contributor since its acquisition in April 2011, focusing on deploying and integrating video surveillance systems for various sectors [17]. Technology and Product Offerings - The company offers a suite of IoT technologies, including AI intelligent video search, smart sensors, and video surveillance systems, to support smart city initiatives [20]. - IvedaAI technology enables accurate search across dozens to thousands of cameras in less than 1 second, enhancing efficiency and reducing operational costs [23]. - The company is developing the Cerebro IoT platform, which includes features such as power management, traffic management, and AI intelligent video search management [51]. - The company’s AI intelligent video search technology, IvedaAI, enhances video surveillance systems and is a key focus for future product development [173]. - Iveda's product offerings include smart utility cabinets that monitor energy consumption and detect abnormalities, utilizing IoT sensors for enhanced safety [42]. - The company has developed smart drones equipped with AI-based software for autonomous operation, enhancing safety and security in various applications [40]. Financial Performance and Losses - For the years ended December 31, 2023 and 2022, the company incurred net losses of approximately $3.2 million and $3.3 million, respectively, with accumulated losses of approximately $47 million through December 31, 2023 [65]. - Loss from operations for 2023 was $3.4 million, an increase of $0.1 million, or 2%, compared to $3.3 million in 2022 [196]. - Net loss for 2023 was $3.2 million, a decrease of $0.1 million, or 3%, from a net loss of $3.3 million in 2022 [199]. - The company has incurred significant net losses since inception and may not achieve or maintain profitability in the near future [65]. Operational Challenges and Risks - The company faces potential strains on management and operational resources due to rapid growth, which could adversely affect its financial condition and results of operations [80]. - The company relies on key management personnel, with the loss of any key employee potentially having a material adverse effect on operations [67]. - The company has limited resources for reseller distribution activities, which may impact the demand for its products [69]. - The company relies on third-party manufacturers and suppliers for hardware components, which introduces risks such as reduced control over delivery schedules and quality assurance [81]. - The company may struggle to maintain favorable terms with third-party manufacturers, impacting its ability to meet quality and quantity requirements [82]. - If the company cannot find timely replacements for manufacturers, it may have to discontinue certain products, risking legal liability and loss of reputation [83]. - An increase in manufacturers' prices or a decline in their financial condition could adversely affect the company's operations and costs [84]. - The company operates in a highly competitive industry, facing challenges from competitors with greater resources and potentially superior products [85]. Compliance and Regulatory Risks - The company is subject to risks associated with international operations, including regulatory environments and political instability in Taiwan, which could adversely impact its financial condition [91]. - The company may face risks related to compliance with export controls and trade regulations, potentially harming international sales [102]. - Recent geopolitical issues, such as the conflict in Ukraine, could have a material adverse effect on the company's results of operations and financial condition [95]. Cash Flow and Liquidity - The company has limited liquidity and has not established a stabilized source of revenue sufficient to cover operating costs [206]. - As of December 31, 2023, cash and cash equivalents were $2.9 million in the U.S. segment and $1.8 million in the Taiwan segment, down from $6.0 million and $1.3 million respectively as of December 31, 2022 [200]. - Net cash used in operating activities for the year ended December 31, 2023 was $3.5 million, an improvement from $5.4 million used in 2022 [201]. - The company has approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025 [205]. Stock and Market Risks - The company has never declared or paid any cash dividends on its common stock and does not anticipate doing so in the foreseeable future [131]. - The company's common stock is subject to price volatility, which could fluctuate substantially due to various factors including market perception and quarterly operating results of other companies in the same industry [132]. - On September 28, 2023, the company received notice from Nasdaq that it no longer complies with the minimum bid price requirement of $1.00 per share [136]. - The company is subject to potential delisting from Nasdaq if it fails to regain compliance with listing requirements [138]. - The company intends to monitor the closing bid price of its common stock and consider available options to resolve noncompliance with the minimum bid price requirement [138]. Cybersecurity and Internal Controls - The company recognizes the importance of cybersecurity and plans to engage external auditors to assess its internal cybersecurity programs [151]. - The company plans to develop processes for assessing and managing cybersecurity risks as part of its overall risk management strategy [150]. - Information security breaches could lead to significant capital expenditures and damage to the company's reputation, affecting its business operations [88]. - The company has identified weaknesses in its internal controls over financial reporting, which could harm its business and stock price [127]. Real Estate and Office Space - The company currently rents approximately 3,000 square feet for its principal executive offices at a cost of approximately $4,500 per month until February 2025 [155]. - Iveda Taiwan leases approximately 4,567 square feet for its principal executive offices at a total cost of approximately $3,136 per month, with leases expiring between June and September 2024 [156].

Revenue Performance - Net consolidated revenue for Q3 2023 was $0.87 million, a decrease of 41% from $1.47 million in Q3 2022[114]. - For the nine months ended September 30, 2023, net consolidated revenue increased to $5.47 million, up 133% from $2.35 million in the same period of 2022[115]. - Service revenue for Q3 2023 was $0.09 million, representing 10% of net revenue, while equipment sales and installation revenue was $0.78 million, or 90% of net revenue[114]. - Iveda Taiwan accounted for 93% of total revenue in 2022, highlighting its significance to the company's financial performance[109]. Cost and Expenses - Total cost of revenue for Q3 2023 was $0.73 million, with a gross margin of 16%, compared to $1.11 million and a gross margin of 24% in Q3 2022[116]. - Operating expenses for Q3 2023 were $1.05 million, a slight decrease of 2% from $1.03 million in Q3 2022[118]. - Loss from operations for Q3 2023 increased to $0.9 million, up 34% from $0.7 million in Q3 2022[121]. Income and Loss - Other income for Q3 2023 was approximately $54,000, an increase from $11,000 in Q3 2022, primarily due to interest income[123]. - Net loss for the three months ended September 30, 2023, was $0.83 million, an increase of $0.16 million or 24% compared to a net loss of $0.67 million for the same period in 2022[126]. - Net loss for the nine months ended September 30, 2023, was $2.1 million, a decrease of $0.3 million or 11% compared to a net loss of $2.4 million for the same period in 2022[127]. - Other income for the nine months ended September 30, 2023, was approximately $76,000, a net increase of $84,000 compared to a net expense of ($8,000) for the same period in 2022[124]. Cash Flow - Cash and cash equivalents as of September 30, 2023, were $5.6 million, down from $7.3 million as of December 31, 2022, primarily due to operating losses[128]. - Net cash used in operating activities for the nine months ended September 30, 2023, was ($1.9) million, an improvement compared to ($3.3) million for the same period in 2022[129]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $0.64 million, primarily for the development of additional IvedaAI platforms[130]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was $0.84 million, a significant decrease from $12.6 million for the same period in 2022[131]. Financial Position and Risks - The company has approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025[132]. - The company has limited liquidity and has not established a stabilized source of revenue sufficient to cover operating costs, making its continuation as a going concern dependent on generating greater revenue or raising additional funds[133]. - The company does not have any off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing, liquidity, market, or credit risk[138]. Business Model and Strategy - The company has evolved its core product line to include AI intelligent search technology and IoT devices in response to digital transformation demands[95]. - Iveda's business model includes dual revenue streams from hardware sales and monthly licensing fees through partnerships with service providers[107].

Financial Performance - Net consolidated revenue for Q2 2023 was $2.39 million, a 267% increase from $0.65 million in Q2 2022[108] - For the first half of 2023, net consolidated revenue reached $4.60 million, up 421% from $0.88 million in the same period of 2022[109] - Equipment sales and installation revenue constituted 97% of net revenue in Q2 2023, compared to 91% in Q2 2022[108] - Total cost of revenue for Q2 2023 was $2.11 million, representing 88% of revenue and a gross margin of 12%[110] - Operating expenses for Q2 2023 were $1.1 million, a decrease of 12% from $1.2 million in Q2 2022[112] - Loss from operations decreased to $0.82 million in Q2 2023, down 22% from $1.06 million in Q2 2022[115] - Net loss for the three months ended June 30, 2023, was $0.76 million, a decrease of $0.31 million or 29% compared to the same period in 2022[120] - Net loss for the six months ended June 30, 2023, was $1.3 million, down $0.36 million or 21% from $1.7 million in the same period in 2022[121] Cash Flow and Liquidity - Cash and cash equivalents increased to $8.6 million as of June 30, 2023, compared to $7.3 million as of December 31, 2022, primarily due to the exercise of 945,900 warrants[122] - Net cash provided in operating activities for the six months ended June 30, 2023, was $0.85 million, a significant improvement from net cash used of ($2.18) million in the same period in 2022[123] - Net cash used in investing activities for the six months ended June 30, 2023, was $0.44 million, primarily for the development of additional IvedaAI platforms[124] - Net cash provided by financing activities for the six months ended June 30, 2023, was $0.94 million, compared to $7.0 million in the same period in 2022[125] - Company has limited liquidity and has not established a stabilized source of revenue sufficient to cover operating costs[127] Tax and Financial Risks - Approximately $32 million in net operating loss carryforwards available for federal income tax purposes, beginning to expire in 2025[126] - Company does not have any off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing and liquidity risks[132] Market and Business Model - Iveda Taiwan accounted for 93% of total revenue in 2022, highlighting its significance to the company's financial performance[103] - The company’s AI intelligent video search technology enhances traditional video surveillance systems, responding to global digital transformation demands[89] - Iveda's business model includes dual revenue streams from hardware sales and monthly licensing fees, leveraging partnerships with service providers[101] Economic Environment - No significant impact from current levels of inflation in the United States or Taiwan on operations[131]

Financial Performance - Net consolidated revenue for Q1 2023 was $2.21 million, an increase of $1.98 million or 855% compared to $0.23 million in Q1 2022[106] - Service revenue accounted for $0.20 million or 9% of net revenue in Q1 2023, while equipment sales and installation revenue was $2.0 million or 91% of net revenue[106] - Total cost of revenue for Q1 2023 was $1.72 million, representing 78% of revenue with a gross margin of 22%, compared to $0.09 million and 61% gross margin in Q1 2022[107] - Operating expenses increased by $0.25 million or 31% to $1.04 million in Q1 2023, primarily due to increased personnel for IvedaAI and investor relations expenses[108] - Loss from operations decreased to $0.55 million in Q1 2023, a reduction of $0.10 million or 15% compared to Q1 2022[110] - Net loss for Q1 2023 was $0.55 million, down $0.12 million or 17% from $0.67 million in Q1 2022, driven by increased net revenues[112] Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2023, were $8.4 million, up from $7.3 million in Q1 2022, attributed to the exercise of warrants[113] - Net cash provided in operating activities for Q1 2023 was $0.17 million, compared to a net cash used of $0.77 million in Q1 2022[114] - Net cash used in investing activities for Q1 2023 was $0.18 million, primarily for the development of additional IvedaAI platforms[115] - Net cash provided by financing activities for Q1 2023 was $1.07 million, up from $0.15 million in Q1 2022, primarily due to the exercise of 945,900 warrants[116] - The company has limited liquidity and its continuation as a going concern depends on generating greater revenue or raising additional funds through capital markets[119] - Substantially all cash is deposited in three financial institutions, with amounts in the U.S. potentially exceeding FDIC insurance limits[120] - The company does not require collateral for accounts receivable, which are unsecured and subject to collection risk[121] - No doubtful accounts receivable allowances were set up for both U.S. and Taiwan-based segments for Q1 2023[122] Operational Insights - Iveda Taiwan accounted for 93% of total revenue in 2022, highlighting its significance to the company's overall financial performance[101] - As of March 31, 2023, the company had approximately $32 million in net operating loss carryforwards for federal income tax purposes, which will begin to expire in 2025[118] - Current levels of inflation in the U.S. and Taiwan have not significantly impacted the company's operations[123] - The company does not have off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing and liquidity risks[124]