Iveda Solutions(IVDA) - 2024 Q3 - Quarterly Report

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]