Iveda Solutions(IVDA) - 2025 Q1 - Quarterly Report

FORM 10-Q Filing Information Filing Details This document is a Quarterly Report (Form 10-Q) filed by IVEDA SOLUTIONS, INC. for the quarterly period ended March 31, 2025, incorporated in Delaware with common stock and warrants registered on The Nasdaq Stock Market LLC - The filing is a Quarterly Report (Form 10-Q) for the period ended March 31, 2025[2] - IVEDA SOLUTIONS, INC. is incorporated in Delaware and its common stock and warrants are listed on The Nasdaq Stock Market LLC[3] Outstanding Shares | Class | Outstanding as of April 30, 2025 | | :-------------------------------- | :------------------------------- | | Common Stock, $0.00001 par value per share | 2,808,071 | PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS This section presents Iveda Solutions, Inc.'s unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, Comprehensive Loss, Stockholders' Equity, and Cash Flows, along with detailed notes on accounting policies and restatements Condensed Consolidated Balance Sheets The company's total assets decreased to $4.53 million at March 31, 2025, while total liabilities increased and total stockholders' equity significantly decreased due to accumulated deficit Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Total Assets | $4,528,325 | $5,179,516 | | Total Liabilities | $2,827,438 | $2,674,077 | | Total Stockholders' Equity | $1,700,887 | $2,505,439 | | Cash and Cash Equivalents | $2,490,482 | $2,629,287 | | Accounts Receivable, Net | $819,750 | $1,277,635 | | Accumulated Deficit | $(53,970,389) | $(53,176,717) | Condensed Consolidated Statements of Operations For the three months ended March 31, 2025, Iveda Solutions, Inc. reported a significant increase in total revenue, primarily from equipment sales, a decrease in gross profit margin, and a reduced net loss compared to the prior year due to lower operating expenses Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (Restated) | | :-------------------------- | :-------------------------------- | :------------------------------------------- | | Total Revenue | $1,474,576 | $346,766 | | Cost of Revenue | $1,186,365 | $164,886 | | Gross Profit | $288,211 | $181,880 | | Loss from Operations | $(835,559) | $(1,331,879) | | Net Loss | $(793,672) | $(1,289,596) | | Basic and Diluted Loss Per Share | $(0.28) | $(0.64) | - Total revenue increased by 325% from $346,766 in Q1 2024 to $1.47 million in Q1 2025, primarily due to increased equipment sales[12][129] - Net loss decreased by 38% from $(1.29) million in Q1 2024 to $(793,672) in Q1 2025, driven by increased revenues and reduced operating expenses[12][131] Condensed Consolidated Statements of Comprehensive Loss The comprehensive loss for the three months ended March 31, 2025, was $(804,552), a reduction from $(1.32) million in the same period of 2024, mainly due to a lower net loss partially offset by foreign currency translation adjustments Condensed Consolidated Statements of Comprehensive Loss | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (Restated) | | :------------------------------------------------ | :-------------------------------- | :------------------------------------------- | | Net Loss | $(793,672) | $(1,289,596) | | Change in Equity Adjustment from Foreign Currency Translation, Net of Tax | $(10,880) | $(34,591) | | Comprehensive Loss | $(804,552) | $(1,324,187) | Condensed Consolidated Statements of Stockholders' Equity Total stockholders' equity decreased from $2.51 million at December 31, 2024, to $1.70 million at March 31, 2025, primarily due to the net loss and accumulated other comprehensive loss Condensed Consolidated Statements of Stockholders' Equity Highlights | Metric | December 31, 2024 | March 31, 2025 | | :-------------------------- | :---------------- | :------------- | | Common Stock Amount | $28 | $28 | | Additional Paid-In Capital | $55,962,337 | $55,962,337 | | Accumulated Deficit | $(53,176,717) | $(53,970,389) | | Accumulated Other Comprehensive Loss | $(280,209) | $(291,089) | | Total Stockholders' Equity | $2,505,439 | $1,700,887 | - The accumulated deficit increased by $793,672 due to the net loss for the three months ended March 31, 2025[17] Condensed Consolidated Statements of Cash Flows Net cash used in operating activities significantly decreased from $(1.29) million in Q1 2024 to $(0.13) million in Q1 2025, primarily due to improved net loss and accounts receivable collection, while financing activities provided minimal cash in Q1 2025 Condensed Consolidated Statements of Cash Flows Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 (Restated) | | :-------------------------------- | :-------------------------------- | :------------------------------------------- | | Net Cash Used in Operating Activities | $(125,966) | $(1,293,473) | | Net Cash Used in Investing Activities | $109 | $- | | Net Cash Provided by Financing Activities | $839 | $525,609 | | Net Decrease in Cash, Restricted Cash and Cash Equivalents | $(139,212) | $(851,248) | | Cash and Cash Equivalents - End of Period | $2,519,088 | $4,017,034 | - Net cash used in operating activities decreased significantly from $(1.29) million in Q1 2024 to $(0.13) million in Q1 2025, primarily due to a lower net loss and $0.5 million cash provided from accounts receivable collection[19][133] - Net cash provided by financing activities was minimal ($839) in Q1 2025, a substantial decrease from $0.53 million in Q1 2024, which included proceeds from long-term loans[19][134] Notes to the Unaudited Condensed Consolidated Financial Statements These notes detail Iveda Solutions, Inc.'s accounting policies, financial instruments, debt, equity, leases, commitments, segment information, and restatements, highlighting going concern uncertainty, revenue recognition, customer concentrations, and prior period adjustments NOTE 1 Summary of Significant Accounting Policies This note outlines Iveda's business, consolidation of Iveda Taiwan, and critical accounting policies, including going concern uncertainty, revenue recognition, and policies for cash, receivables, inventory, property, income taxes, stock-based compensation, and fair value measurements - Iveda Solutions, Inc. offers advanced AI-driven video surveillance solutions and IoT platforms globally, focusing on smart city technologies[24] - The company has experienced net losses and negative operating cash flows, raising substantial doubt about its ability to continue as a going concern without additional financing[26][27][28] - Revenue recognition follows ASC 606-10, with revenue