Iveda Solutions(IVDA) - 2025 Q3 - Quarterly Report

Market Growth Projections - 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[91] - 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[91] - Global spending on artificial intelligence is projected to double from USD 50.1 billion in 2020 to over USD 110 billion in 2024[92] Iveda Product Offerings - Iveda launched IvedaCare in November 2022, a suite of wireless health and wellness devices aimed at monitoring the health and activities of loved ones[117] - Iveda's smart power technology includes smart power, water meters, smart lighting control systems, and smart payment systems for various applications[102] - IvedaAI enables accurate search across dozens to thousands of cameras in less than 1 second, maximizing efficiency and reducing costs[95] - Iveda's smart drones utilize AI-based software for autonomous operation and are equipped with advanced video surveillance technology[112] - The Iveda Smart Utility Cabinet monitors daily energy consumption and detects abnormalities using IoT sensors[115] Business Model and Clientele - Iveda's business model in the US focuses on selling hardware and licensing software to service providers, generating dual revenue streams from hardware sales and software licensing fees[120] - Iveda's customers include Chunghwa Telecom, Taiwan Stock Exchange, and New Taipei City Police Department, servicing enterprise and government clients on a per-project basis[121] Financial Performance - For the three months ended September 30, 2025, consolidated revenues decreased by 31% to $1,651,787 compared to $2,398,156 for the same period in 2024[125] - Gross profit increased by 26% to $517,277 for the three months ended September 30, 2025, compared to $410,482 in the same period in 2024[125] - Operating expenses decreased by 28% to $731,580 for the three months ended September 30, 2025, compared to $1,019,415 in the same period in 2024[125] - The net loss for the three months ended September 30, 2025, was $221,304, a 62% decrease from the net loss of $514,472 in the same period in 2024[126] - The decrease in revenue was primarily due to decreased equipment sales from Iveda Taiwan related to delivery timing of long-term government contracts[126] - The increase in overall gross margin was attributed to higher margin contract sales in Taiwan[127] - The reduction in operating expenses was due to the absence of re-audit and general operation expenses in the US and Taiwan during the period[127] - The net decrease in loss from operations was primarily due to increased gross margins and reduced operating expenses[129] - For the nine months ended September 30, 2025, detailed financial results will be provided in the upcoming sections[130] - Revenues for the nine months ended September 30, 2025, increased to $4,654,271, a 9% rise compared to $4,278,983 for the same period in 2024[131] - Gross profit for the nine months ended September 30, 2025, was $1,250,259, reflecting a 14% increase from $1,093,540 in the prior year[131] - Operating expenses decreased to $2,832,480 for the nine months ended September 30, 2025, down 22% from $3,642,748 in the same period in 2024[133] - Net loss before income tax improved to $(1,548,781) for the nine months ended September 30, 2025, compared to $(2,437,486) in the prior year, a reduction of 36%[135] - Cash and cash equivalents increased to $3.3 million as of September 30, 2025, up from $2.7 million at the end of 2024[134] - Net cash used in operating activities decreased to $(1.8) million for the nine months ended September 30, 2025, compared to $(3.5) million in the same period in 2024[135] - Net cash provided by financing activities was $2.4 million for the nine months ended September 30, 2025, slightly up from $2.3 million in the prior year[137] - The company has approximately $38 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025[139] - The overall gross margin showed a slight increase due to higher margin contract sales in the US and Taiwan[132] - The decrease in net loss was primarily attributed to reduced operating expenses for the nine months ended September 30, 2025, compared to the same period in 2024[133] Accounting Standards - No new accounting standards were issued that would impact the company's operations or disclosures[123]