Core Viewpoint - Zacks Investment Research has initiated coverage of Iveda Solutions, Inc. (IVDA) with a "Neutral" recommendation, indicating a balanced risk-reward profile as the company aims to convert backlog into sustainable profitability while managing geographic and customer concentration risks [1] Company Overview - Iveda Solutions, headquartered in Mesa, AZ, provides AI-driven video surveillance and IoT technologies supporting smart city and digital transformation initiatives, with offerings including intelligent video analytics, the Cerebro IoT platform, smart poles, power solutions, drones, sensors, body cameras, and health monitoring systems [2] - The company primarily operates in the United States and Taiwan, with Taiwan accounting for 85% of total revenues projected for 2024 [2] Financial Performance - For 2024, consolidated revenues are projected at $6 million, reflecting a 7% decrease year over year, with equipment sales and installation comprising 93% of revenues and services making up 7% [3] - In the first nine months of 2025, the company raised $2.7 million through an equity program and an additional $2.2 million in October, increasing cash and equivalents to $3.3 million as of September 30, 2025, which extends operational runway [4] - Total operating expenses decreased by approximately $810,000 year over year in the first nine months of 2025, narrowing the operating loss to $1.6 million from $2.5 million in the prior year, while gross profit improved to $1.25 million with a gross margin expansion to 31% from 17% [5] Growth Drivers - The company is developing a modest but growing services stream, which may help stabilize revenue volatility over time, enhancing visibility and supporting margin stability [6] Challenges - Iveda remains unprofitable and is dependent on the timing of equipment shipments, installations, and milestone approvals, leading to potential revenue volatility [7] - Customer concentration is significant, with two customers representing a large portion of 2025 revenues, and the company's geographic exposure to Taiwan is high [7] - Working capital fluctuations and potential future financing needs introduce uncertainty regarding the path to sustained profitability [7] Valuation - Shares have declined significantly over the past year, trading at 0.53X trailing 12-month P/B and 0.22X EV/EBITDA, both below industry and broader market averages, indicating a compressed valuation [8]