Iveda Solutions(IVDA) - 2024 Q2 - Quarterly Report

Revenue Performance - Net consolidated revenue for Q2 2024 was $1.53 million, a decrease of 36% from $2.39 million in Q2 2023[102] - For the first half of 2024, net consolidated revenue was $1.88 million, a decrease of 59% from $4.60 million in the same period of 2023[107] - Equipment sales and installation revenue for the first half of 2024 was $1.67 million, or 89% of net revenue, down from $4.3 million, or 94%, in the first half of 2023[107] - Service revenue for Q2 2024 was $0.89 million, representing 6% of net revenue, compared to $0.08 million or 3% in Q2 2023[102] - Iveda Taiwan accounted for 93% of total revenue in 2023, up from 71% in 2022[98] Cost and Expenses - Total cost of revenue for Q2 2024 was $1.03 million, with a gross margin of 33%, compared to $2.11 million and a gross margin of 12% in Q2 2023[103] - Total cost of revenue for the first half of 2024 was $1.20 million, with a gross margin of 36%, compared to $3.83 million and a gross margin of 17% in the first half of 2023[108] - Operating expenses decreased to $1.02 million in Q2 2024, down 8% from $1.10 million in Q2 2023[104] - Operating expenses increased to $2.36 million in the first half of 2024, up 10% from $2.14 million in the first half of 2023[109] Profitability and Loss - Net loss for Q2 2024 was $0.49 million, a reduction of 35% from $0.76 million in Q2 2023[107] - Loss from operations increased to $1.68 million for the six months ended June 30, 2024, representing a 22% increase compared to $1.37 million for the same period in 2023[110] - Net loss was $1.60 million for the six months ended June 30, 2024, an increase of 23% from $1.31 million for the same period in 2023[112] Cash Flow and Liquidity - Cash and cash equivalents decreased to $2.9 million as of June 30, 2024, down from $4.8 million as of December 31, 2023, primarily due to operating losses[112] - Net cash used in operating activities was ($2.0) million for the six months ended June 30, 2024, compared to $0.79 million net cash provided during the same period in 2023[113] - Net cash used in investing activities was $0.30 million for the six months ended June 30, 2024, primarily for the development of additional IvedaAI platforms[114] - Net cash provided by financing activities was $0.52 million for the six months ended June 30, 2024, compared to $1.0 million during the same period in 2023[114] - 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[117] Tax and Financial Position - The company has approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025[116] - Accounts receivable are unsecured, and the company does not require collateral for products and services provided on credit[118] - The company does not believe that current levels of inflation in the United States or Taiwan have significantly impacted its operations[120]