Iveda Solutions(US:IVDA)2021-11-15 11:09Revenue Performance - Net consolidated revenue for Q3 2021 was $411,452, an increase of 48% from $278,238 in Q3 2020[127] - Recurring service revenue for Q3 2021 was $106,434, representing 26% of net consolidated revenue, down from 52% in Q3 2020[127] - Equipment sales and installation revenue for Q3 2021 was $300,756, accounting for 73% of net consolidated revenue, up from 48% in Q3 2020[127] - For the nine months ended September 30, 2021, net consolidated revenue was $1,304,725, a 12% increase from $1,164,640 in the same period of 2020[128] - MEGAsys operations accounted for 95% of total revenue for the nine months ended September 30, 2021[128] - The U.S.-based segment saw a minimal revenue increase of $11,748, or 42%, while the Taiwan-based segment revenue increased by $121,466, or 49% in Q3 2021[127] - The increase in Taiwan-based segment revenue was primarily due to additional long-term contracts awarded during Q3 2021[127] - Revenue from three customers in the Taiwan-based segment represented approximately 74% of total revenue for the quarter ended September 30, 2021[148] Costs and Expenses - Total cost of revenue for the three months ended September 30, 2021, was $136,887, representing 33% of revenue and a gross margin of 67%, a decrease of $310,361 or 69% compared to the same period in 2020[129] - Operating expenses for the three months ended September 30, 2021, were $698,717, an increase of $287,431 or 70% compared to the same period in 2020, primarily due to increased personnel and research and development expenses[131] Profitability and Loss - Net loss for the three months ended September 30, 2021, was ($453,411), a decrease of $146,695 or 24% compared to the same period in 2020, attributed to increased revenues and gross margins in the Taiwan-based segment[137] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2021, were $939,399 in the U.S.-based segment and $292,035 in the Taiwan-based segment, compared to $32,574 and $216,947 respectively as of December 31, 2020[140] - Net cash used in operating activities during the nine months ended September 30, 2021, was $1.2 million, compared to $0.1 million in the same period in 2020, primarily due to a net loss of $1.8 million[141] - Net cash provided by financing activities for the nine months ended September 30, 2021, was $2.2 million, primarily from a $2.1 million sale of Common Stock with Warrants[143] Debt and Financial Risk - As of September 30, 2021, the company had $485,000 in outstanding Short-Term Debt, with $385,000 past the maturity date[144] - The company had approximately $25 million in net operating loss carryforwards available for federal income tax purposes as of December 31, 2020, which will begin to expire in 2025[145] - The company does not have any relationships with unconsolidated entities or financial partnerships, indicating no exposure to off-balance sheet arrangements[159] - There are no undisclosed borrowings or debt reported by the company, minimizing financial risk[159] - The company has not entered into any synthetic leases, further reducing potential financial liabilities[159] - The company is not materially exposed to financing, liquidity, market, or credit risk associated with off-balance sheet arrangements[159] - There are no quantitative or qualitative disclosures about market risk applicable to the company[160] Technology and Business Model - IvedaAI technology enhances video surveillance systems with AI functions, providing critical intelligence to video data[108] - The company has established a presence in Asia, enhancing global distribution potential and access to cost-effective R&D[128] - Iveda's business model includes dual revenue streams from hardware sales and monthly licensing fees through partnerships with service providers[118] Future Outlook - The company expects revenue for the year ending December 31, 2021, to be impacted by ongoing conditions related to the COVID-19 pandemic[157]