What changed in this filing

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Item 1. Financial Statements

2023-05-15 compared with 2022-11-14 · 312 added, 387 removed, 655 unchanged (52% of the section changed)

SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

BALANCE SHEETS

31, 2023 AND DECEMBER 31, 2022

September 30, 2022

December 31, 2022

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PROPERTY AND EQUIPMENT, NET

Intangible Assets, Net

Total Other Assets

7 unchanged sentences

LONG-TERM DEBT

LONG-TERM DIVIDENDS PAYABLE

STOCKHOLDERS’ EQUITY

Preferred Stock, $ 0.00001 par value;

12,500,000 shares authorized Series B Preferred Stock, $ 0.00001 par value;

500 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

100,000,000 shares authorized

Series B Preferred Stock, $ 0.00001 par value;

500 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

Preferred stock, value

Common Stock, $ 0.00001 par value;

100,000,000 shares authorized;

11,677,265 and 9,668,369 , shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

16,012,639 and 15,066,739 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

Additional Paid-In Capital

Subscription Receivable

Accumulated Comprehensive Loss

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STATEMENTS OF OPERATIONS

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

For the Three

September 30,

For the Three

September 30,

THE THREE MONTHS ENDED MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2021

Equipment Sales

7 unchanged sentences

LOSS FROM OPERATIONS

( 2,387,090 )

( 1,519,192 )

OTHER INCOME (EXPENSE)

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LOSS BEFORE INCOME TAXES

( 2,395,333 )

( 1,775,728 )

BENEFIT (PROVISION) FOR INCOME TAXES

1 unchanged sentence

$ ( 666,798 )

$ ( 2,398,331 )

$ ( 1,775,728 )

BASIC AND DILUTED LOSS PER SHARE

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Equity(Deficit)

BALANCE AT December 31, 2020

BALANCE AT December 31, 2021 (AUDITED)

$ ( 41,361,401 )

1 unchanged sentence

$ ( 777,279 )

Common Stock Issued for Cash

Costs of Capital

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Stock Based Compensation

Common Stock for Accounts Payable

Common Stock for Costs of Financing

Common Stock issued for conversion error

Common Stock issued for services

Warrants for Services

Warrants for Interest Expense

Convertible Debenture Value

Preferred Stock - Series B for Dividend

Preferred Stock - Series B Shares and Dividend Payable to Common Stock

Dividends - P/S Series B

Conversion of Debt & Interest to Common Stock

Exercise of options and warrants

Common Stock Offering for Cash

Common Stock and Pre-Funded Warrant Offering for Cash – August 2022

Warrants sold in

Over allotment

( 3,345,270 )

1 unchanged sentence

Comprehensive Loss

8 for 1 conversion adjustment

BALANCE AT December 31, 2022

1 unchanged sentence

$ ( 220,643 )

$ ( 777,279 )

Costs of Capital

Balance, value

$ ( 44,706,671 )

$ ( 220,643 )

Stock Based Compensation

Common Stock issued for conversion error

Common Stock issued for services

Warrants issued for services

Exercise of options and warrants

Common Stock Offering for Cash – April 2022

Warrants sold in

Over allotment

Common Stock and Pre-Funded Warrant Offering – August 2022

Exercise of warrants issued August 2022

Comprehensive Loss

BALANCE AT March 31, 2023 (UNAUDITED)

$ ( 45,256,934 )

$ ( 221,317 )

Comprehensive Loss

8 for 1 conversion adjustment

BALANCE AT September 30, 2022

Balance, value

$ ( 45,256,934 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE NINE MONTHS ENDING SEPTEMBER 30, 2022 AND 2021

THE THREE MONTHS ENDING MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

5 unchanged sentences

Stock Option Compensation

Common Stock Issued for Services

Common Stock Warrants Issued for Services

5 unchanged sentences

Net Cash Used in Operating Activities

( 3,296,178 )

( 1,179,673 )

CASH FLOWS FROM INVESTING ACTIVITIES

16 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE NINE MONTHS ENDING SEPTEMBER 30, 2022 AND 2021

THE THREE MONTHS ENDING MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2022

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

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Common Stock issued for Consulting Agreements related to Cost of Capital

Debenture Accrued Interest converted to Common Stock

Debenture Principal converted to Common Stock

Rent Accounts Payable to related party converted to Common Stock

Accounts Payable to non-related party converted to Common Stock

Accrued Dividends converted to Common Stock

Dividends Paid with Series B Preferred Stock

Warrants Issued for Interest

Warrants Issued for Services

accompanying Notes to Condensed Consolidated Financial Statements.

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While we still offer video surveillance technologies,

our core product line has evolved to include AI intelligent search technology that provides true intelligence to any video surveillance

our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance

system and IoT (Internet of Things) devices and platforms.

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IvedaAI products are designed to maximize efficiency, save time, and cut cost.

Users can set up alerts instead of watching hours of video recording after-the-fact.

offers many IoT sensors and devices for a variety of applications such as energy management, smart home, smart building, smart community,

Instead of watching hours of video recording after-the-fact, users can set up alerts.

offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community

and patient/elder care.

Together, our gateway and station serve as the main hub for sensors and devices in any given area.

Our gateway and station serve as the main hub for sensors and devices in any given area.

They are equipped

with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB.

They connect to the Internet via Ethernet or cellular

data network.

We provide IoT platforms that enable centralized device management and push digital services on a massive scale.

devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices.

They connect to the Internet via Ethernet or

cellular data network.

We provide IoT platforms that enable centralized device management and push digital services on a massive

Our smart devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, a care

wrist watch and tracking devices.

also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects.

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user interface.

roadmap includes a dashboard for all of Iveda’s platforms for central device management.

Cerebro is system agnostic and will support

cross-platform interoperability.

The common unified user interface will allow remote control of platforms, sensors and subsystems throughout

an entire environment.

This integration and unification of all subsystems enable acquisition and analysis of all information on one central

command center, allowing comprehensive, effective, and overall management and protection of a city.

Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole

The Utilus network uses WiFi, 4G and 5G small cell capabilities, and other wireless protocols to provide distributed video

surveillance with AI video search technology and remote management of local devices such as trackers, water meters, electrical meters,

valves, circuit breakers and sensors.

the last few years, smart city has been a hot topic among municipalities across the globe.

With little to no human interaction, technology

increases efficiency, expedites decision making, and reduces response time.

Dwindling public safety budgets and resources have necessitated

the transformation.

roadmap includes dashboard for all of Iveda’s platforms for central management of all devices.

Cerebro is system agnostic and will

support cross-platform interoperability.

The common unified user interface will allow remote control of platforms, sensors and subsystems

throughout an entire environment.

This integration and unification of all subsystems enable acquisition and analysis of all information

on one central command center, allowing comprehensive, effective, and overall management and protection of a city.

the last few years, smart city has been a hot topic among cities across the globe.

With little to no human interaction, technology increases

efficiency, expedites decision making, and reduces response time.

Dwindling public safety budgets and resources has necessitated the

transformation.

More and more municipalities are using next-generation technologies to improve the safety and security of its citizens.

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video surveillance systems, and smart power.

is our smart pole solution, utilizing our Cerebro IoT platform.

This completes our digital transformation solution crucial in smart city

deployments as well as in large organizations.

Iveda leverages infrastructure already available in most modern cities – Light poles

equip existing poles with Utilus.

Utilus consists of power and Internet, establishing a communication network for access and management

of sensors and devices that the city requires to keep its citizens safe and secure and to effectively manage utility consumption.

smart pole offering is also ideal for government or large scale city deployments:

Supporting and Improving

City Services

Reducing Emergency Response

Crime & Hazard Protection

Monitoring and Improving

Sound Detection

Traffic Monitoring and Mobility

Data Analytics and Monetization

Opportunities

launched in November 2022 is a simple, easy to use suite of wireless health and wellness devices intended to help you monitor the health

and activities of your loved ones, even when you can’t be there yourself.

Our mission is to help ensure your loved one’s

safety and independence.

Stay connected to your elderly loved ones with our advanced IoT devices.

Real-time monitoring, fall detection,

medication reminders and more.

With IvedaCare, you not only can monitor your home and loved ones from afar, but potentially life-saving

decisions can be made using the app.

Cloud-based, wireless sensors collect real-time data shared with the entire family circle

within the app.

Customers may add a subscription service for Pro Monitoring.

If the Trusted Circle is unavailable, our emergency call

center will dispatch emergency services quickly.

Historically,

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of businesses and organizations.

While we originally only used off-the shelf camera systems from well-known camera brands, we now source

our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs.

While we only used off-the shelf camera systems from well-known camera brands, we now source our own

cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs.

We now have the capability

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other from monthly licensing fees.

Taiwan-based subsidiary Iveda Taiwan, formerly known as MEGAsys, our wholly-owned subsidiary, specializes in deploying new, and integrating

existing, video surveillance systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels,

banks, and safe city.

Iveda Taiwan combines security surveillance products, software, and services to provide integrated security solutions

to the end user.

Through Iveda Taiwan, we have access not only to Asian markets but also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working with a team of developers in Taiwan.

our subsidiary in Taiwan, specializes in deploying new, and integrating existing, video surveillance systems for airports, commercial

buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City.

MEGAsys combines security surveillance

products, software, and services to provide integrated security solutions to the end user.

Through Iveda Taiwan, we have access not only

to Asian markets but also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working

with a team of developers in Taiwan.

Consolidation

April 30, 2011, we completed our acquisition of Taiwan-based Sole Vision Technologies (dba Iveda Taiwan).

We consolidate our financial

statements with the financial statements of Iveda Taiwan.

All intercompany balances and transactions have been eliminated in consolidation.

accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates

the realization of assets and the liquidation of liabilities in the normal course of business.

We generated accumulated losses of approximately

$ 43 million from January 2005 through September 30, 2021 and have insufficient working capital and cash flows to support operations.

These factors raise substantial doubt about our ability to continue as a going concern.

The consolidated financial statements do not

include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification

of liabilities that might result from this uncertainty.

April 30, 2011, we completed our acquisition of Sole Vision Technologies (fka MEGAsys and dba Iveda Taiwan), a company based in Taiwan.

We consolidate our financial statements with the financial statements of Iveda Taiwan.

All intercompany balances and transactions have

been eliminated in consolidation.

of Long-Lived Assets

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the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value.

not make any impairment for the nine months ended September 30, 2022 and year ended December 31, 2021.

not make any impairment for the years ended December 31, 2022 and 2021.

of Accounting

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US also sells software that include licensing fees that are paid either monthly or yearly.

The revenues are recorded monthly, annual

license revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective time period.

The revenues are recorded monthly, if

the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective

Comprehensive

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Substantially

all cash is deposited in two financial institutions, one in the United States and one in Taiwan.

all cash is deposited in three financial institutions, two in the United States and one in Taiwan.

At times, amounts on deposit in the

United States may be in excess of the FDIC insurance limit.

Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit

Deposits in Taiwan financial institutions are insured by CDIC (Central

Insurance Corporation) with maximum coverage of NTD 3 million.

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of our customers’ financial condition and generally do not require collateral.

One customer (Chunghwa Telecom) represented approximately

95 % of total accounts receivable of $ 492,752 as of December 31, 2021.

This customer is a longtime customer, and we do not expect any

problem with the collectability of these accounts receivable.

had revenue from two customers with greater than 10 % of total revenues during the nine months ended September 30, 2022 and two customers

for the year ended December 31, 2021 that represented approximately 55 % and 55 % of total revenues, respectively.

We had $ 0.8 million

revenues ( 34 %) from Chunghwa Telecom and $ 0.5 million from Chicony Power Technology Co.

Ltd of total revenues of $ 2.3 million for the

nine months ended September 30, 2022.

We had $ 0.8 million revenues ( 41 %) from Chunghwa Telecom and $ 0.3 million revenues ( 14 %) from Taiwan

Stock Exchange Corporation of total revenues of $ 2.0 million for the year ended December 31, 2021.

other customers represented greater than 10 % of total revenues in the nine months ended September 30, 2022 and year ended December 31,

At December 31, 2022 one customer out of a total

of 36 customer accounts receivable accounts was 52 % of the total accounts receivable.

This specific customer was Chicony Power Technology

One customer (Chunghwa Telecom) represented approximately 95 % of total accounts receivable of $ 492,752 as of December 31, 2021.

These customers are longtime customers, and we don’t expect any problem with collectability of these accounts receivable.

from two customers out of 42 total customers represented approximately 52 % of total revenue for the year ended December 31, 2022.

specific customers were 1) We had $ 948,592 revenues ( 21 % ) from Chunghwa Telecom, 2) We had $ 1,385,026 revenues ( 31 % ) from Chicony Power

Technology Co Ltd, (both Taiwan companies) of total revenues of $ 4,468,279 .

had revenue from two customers with greater than 10 % of total revenues for the year ended December 31, 2021 that represented approximately

55 % of total revenues.

We had $ 786,686 revenues ( 41 % ) from Chunghwa Telecom and $ 260,946 revenues ( 14 % ) from Taiwan Stock Exchange Corporation

of total revenues of $ 1,917,848 .

other customers represented greater than 10 % of total revenues in years ended December 31, 2022 and 2021.

and Cash Equivalents

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credit valuation and specific circumstances of the customer.

As of September 30, 2022 and December 31, 2021 no allowance for uncollectible

accounts was deemed necessary for our U.S.-based segment.

As of December 31, 2022 and 2021, respectively, an allowance for uncollectible

accounts of $ 0 and $ 0 was deemed necessary for our U.S.-based segment.

current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for

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Current Assets

current assets represent cash paid in advance to insurance companies and vendors for service coverage extending into subsequent periods.

current assets represent cash paid in advance to vendors for service coverage extending into subsequent periods.

review our inventories for excess or obsolete products or components based on an analysis of historical usage and an evaluation of estimated

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The allowance for slow-moving and obsolete

inventory is $ 0 as of September 30, 2022 and December 31, 2021.

inventory is $ 0 and $ 0 , as of December 31, 2022 and 2021, respectively.

and Equipment

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Expenditures for routine maintenance and repairs are charged to expense as incurred.

Depreciation expense for the nine

months ended September 30, 2022 was $ 13,136 and for the year ended December 31, 2021 was $ 15,016 .

assets consist of trademarks and other intangible assets associated with the purchase price allocation of Iveda Taiwan.

Such assets are

fully amortized at December 31, 2021.

Depreciation expense for the years

ended December 31, 2022 and 2021 was $ 17,801 and $ 15,016 , respectively.

Deposits—Long-Term

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and liabilities.

During 2021, we re-evaluated the valuation allowance for deferred tax assets and determined that no current benefits

During 2021, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits

should be recognized for the year ended December 31, 2022.

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OF ACCOUNTS AND OTHER PAYABLES

September 30, 2022

March 31, 2023

December 31, 2022

1 unchanged sentence

Accrued Expenses

Deferred Revenue and Customer Deposits

Accounts and Other Payables

Deferred Revenue, Customer Deposits, & Taxes Payable

Accounts and Other Payables Total

payments received from customers on future installation projects are recorded as deferred revenue.

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We recognize stock-based compensation expense on a straight-line basis over the requisite service period of the award.

value of stock-based compensation awards granted prior to, but not yet vested as of September 30, 2022 and December 31, 2021, were estimated

using the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.”

value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2022 and 2021, were estimated using

the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.”

Therefore, no compensation expense is recognized for these awards in accordance with ASC 718.

We recognized $ 93,900 and $ 801,908 of stock-based

compensation expense for the nine months ended September 30, 2022 and December 31, 2021, respectively.

We recognized $ 120,581 and $ 801,908 of

stock-based compensation expense for the years ended December 31, 2022 and 2021, respectively and no stock based compensation for the

three months ended March 31, 2023.

Value of Financial Instruments

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of March 31,

2023 and December 31, 2022.

The respective carrying values of certain on-balance-sheet financial instruments approximate their fair

These financial instruments include cash, accounts receivable, accounts payable, accrued expenses, and amounts due to related

Fair values were assumed to approximate carrying values for these financial instruments because they are short-term in nature

and their carrying amounts approximate their fair values or because they are receivable or payable on demand.

The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values.

These financial instruments include cash, accounts receivable, 0 payable, accrued expenses, and amounts due to related parties.

values were assumed to approximate carrying values for these financial instruments because they are short-term in nature and their carrying

amounts approximate their fair values or because they are receivable or payable on demand.

conduct operations in various geographic regions.

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OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS

September 30, 2022 (Unaudited)

(Liabilities)

March 31, 2023 (UNAUDITED)

Net Assets (Liabilities)

United States

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new relevant accounting standards

2 RELATED PARTIES

OF RELATED PARTY TRANSACTIONS

September 30, 2022 (Unaudited)

December 31, 2021

On August 28, 2014, we entered into a debenture agreement with Mr.

Gregory Omi, formerly a member of our Board of Directors of the company for $ 200,000 , at 9.5 % interest per annum with interest and principal payable on the extended maturity date of December 31, 2016 .

As consideration for the extension of the debenture, we granted Mr.

Omi options to purchase 2,500 shares of our common stock with an exercise price of $ 6.16 per share.

This debenture was extended to December 31, 2022.

Omi is currently the CTO of the company.

On November 19, 2012, we entered into a convertible debenture agreement with Mr.

Robert Gillen, a member of our Board of Directors, for $ 100,000 (the “Gillen I Debenture”), under his company Squirrel-Away, LLC.

Under the original terms of the agreement, interest is payable at 10 % per annum and became due on December 19, 2014 .

Gillen I Debenture was extended to January 5, 2015 .

On June 20, 2013, interest of $ 5,000 was paid on the debenture.

As consideration for agreeing to extend the maturity date of the debenture to December 31, 2015 , we granted Mr.

Gillen options to purchase 1,250 shares of common stock at an exercise price of $ 6.16 per share This debenture was extended to December 31, 2022 .

Total Due to Related Parties

Less Current Portion

Total Long-Term

2 RELATED PARTIES DEBT - NONE

3 SHORT-TERM AND LONG-TERM DEBT

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OF SHORT-TERM DEBT

September 30, 2022 (Unaudited)

March 31, 2023

December 31, 2022

Debenture agreements with a shareholder at 10 % interest rate beginning in February 2019 - December 2019, one year maturity, were due February 2020 – December 2020 , principal and interest convertible at $ 2.80 per share into common stock at the option of the holder until repaid.

All principal and accrued interest converted during 2021 except one remaining $ 50,000 debenture and accrued interest of $ 12,079 .

Loan Agreement with Shanghai Bank at 2.68 % interest rate per annum due January 2023 .

Loan Agreement with Shanghai Bank at 2.81 % interest rate per annum due September 2023 .

Loan Agreement with Shanghai Bank at 2.94 % interest rate per annum due August 2023 .

Loan agreement with Hua Nam bank at 2,42 % interest rate per annum due September 2022 .

Repaid January and March 2023

Balance at end of period

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OF LONG-TERM DEBT

September 30, 2022

March 31, 2023

December 31, 2022

Loans from Shanghai Bank with interest rates 1.50 % - 2.97 % per annum due February 2024 – November 2026

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Board of Directors in its sole discretion) and have no preemptive rights to subscribe for any of our securities.

6 STOCK OPTION PLANS

6 STOCK OPTION PLAN AND WARRANTS

January 18, 2010, we adopted the 2010 Stock Option Plan (the “2010 Option Plan”), which allows the Board to grant options

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The shares issuable

pursuant to the 2010 Option Plan were registered with the SEC under Forms S-8 filed on February 4, 2010 (No.

pursuant to the 2010 Option Plan are registered with the SEC under Forms S-8 filed on February 4, 2010 (No.

333- 164691), June 24, 2011

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The 2010 Option Plan expired on January 18, 2020.

adopted a new plan called Iveda Solutions, Inc.

As of December 31, 2022 there

were 361,313 options outstanding under the 2010 Option Plan.

December 15, 2020, we adopted the Iveda Solutions, Inc.

2020 Plan (the “2020 Plan”).

The 2020 Plan will have a maximum of 1.25 million

option shares authorized with similar terms and conditions to the 2010 Option Plan.

This plan has not been approved by the shareholders.

of September 30, 2022 and December 31, 2021, there were 907,188 and 893,438 options outstanding, respectively, under all the option plans.

The 2020 Plan has a maximum of 1,250,000

shares authorized with similar terms and conditions to the 2010 Option Plan.

As of December 31, 2022 there were 653,125 options outstanding

under the 2020 Option Plan.

The shares issuable pursuant to the 2020 Option Plan are registered with the SEC under Forms S-8 filed on

October 7, 2022 (No.

of December 31, 2022 and December 31, 2021, there were 1,014,438 and 907,188 options outstanding, respectively, under all the option

For the three months ended March 31, 2023 there were no options granted and 1,250 options cancelled.

options may be granted as either incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986,

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The following table accounts for federal net operating loss carryforwards only.

OF OPERATING LOSS CARRYFORWARDS

SUMMARY OF OPERATING LOSS CARRYFORWARDS

Net Operating

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earnings per share (“EPS”) is computed by dividing reported earnings available to stockholders by the weighted average shares

We had net losses for the nine months ended September 30, 2022 and 2021 and the effect of including dilutive securities

in the earnings per common share would have been anti-dilutive for the purpose of calculating EPS.

Accordingly, all options, warrants,

and shares potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the nine months

ended September 30, 2022 and 2021.

OF EARNINGS PER SHARE BASIC AND DILUTED

September 30, 2022

September 30, 2021

We had net losses for the three months ended March 31, 2023 and 2021 and the effect of including dilutive securities in

the earnings per common share would have been anti-dilutive for the purpose of calculating EPS.

Accordingly, all options, warrants, and

shares potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the Three months

ended March 31, 2023 and 2021.

SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED

March 31, 2023

March 31, 2022

$ ( 550,263 )

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9 CONTINGENT LIABILITIES—TAIWAN

to certain contracts with Siemens, Chung-Hsin Electric and Machinery Manufacturing Corp, Iveda Taiwan is required to provide after-project

If Iveda Taiwan fails to provide these after-project services in the future, other parties of the related contract would have

The financial exposure to Iveda Taiwan in the event of failure to provide after- project services in the future as of December

31, 2021 is $ 285,105 .

to certain contracts with Siemens, Chicony Power Technology, Chung-Hsin Electric and Machinery Manufacturing Corp, Iveda Taiwan is required

to provide after-project services.

If Iveda Taiwan fails to provide these after-project services in the future, other parties of the

related contract would have recourse.

The financial exposure to Iveda Taiwan in the event of failure to provide after- project services

in the future as of March 31, 2023 is $ 303,208 .

10 SUBSEQUENT EVENTS

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Regarding Forward-Looking Information

Quarterly Report on Form 10-Q (or Form 10-Q Quarterly Report) contains forward looking statements that involve risks and uncertainties.

All statements other than statements of historical fact contained in this Form 10-Q Quarterly Report, including statements regarding

future events, our future financial performance, business strategy, and plans and objectives for future operations, are forward-looking

In many cases, you can identify forward-looking statements by terminology such as “anticipates,” “believes,”

“can,” “continue,” “could,” “estimates,” “expects,” “intends,”

“may,” “plans,” “potential,” “predicts,” “should,” or “will”

or the negative of these terms or other comparable terminology.

Although we do not make forward looking statements unless we believe

we have a reasonable basis for doing so, we cannot guarantee their accuracy.

These statements are only predictions and involve known

and unknown risks, uncertainties, and other factors, including the risks outlined under “Risk Factors”, “Liquidity

and Capital Resources” with respect to our ability to continue to generate cash from operations or new investment, or elsewhere

in this Report on Form 10-Q Quarterly Report or discussed in our audited consolidated financial statements for the year ended December

31, 2021, which may cause our or our industry’s actual results, levels of activity, performance, or achievements to differ materially

from those expressed or implied by these forward-looking statements.

Moreover, we operate in a very competitive and rapidly changing

New risks emerge from time to time, and it is not possible for us to predict all risk factors, nor can we address the impact

of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially

from those contained in any forward-looking statements.

Report on Form 10-Q Quarterly Report contains forward looking statements that involve risks and uncertainties.

All statements other than

statements of historical fact contained in this Form 10-Q Quarterly Report, including statements regarding future events, our future

financial performance, business strategy, and plans and objectives for future operations, are forward-looking statements.

In many cases,

you can identify forward-looking statements by terminology such as “anticipates,” “believes,” “can,”

“continue,” “could,” “estimates,” “expects,” “intends,” “may,”

“plans,” “potential,” “predicts,” “should,” or “will” or the negative of

these terms or other comparable terminology.

Although we do not make forward looking statements unless we believe we have a reasonable

basis for doing so, we cannot guarantee their accuracy.

These statements are only predictions and involve known and unknown risks, uncertainties,

and other factors, including the risks outlined under “Risk Factors”, “Liquidity and Capital Resources” with

respect to our ability to continue to generate cash from operations or new investment, or elsewhere in this Report on Form 10-Q Quarterly

Report or discussed in our audited consolidated financial statements for the year ended December 31, 2022, which may cause our or our

industry’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied

by these forward-looking statements.

Moreover, we operate in a very competitive and rapidly changing environment.

New risks emerge from

time to time, and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business

or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained

in any forward-looking statements.

has been offering real-time IP video surveillance technologies to our customers since 2005.

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IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements.

Search (No Database Required)

Recognition (from a Database)

Plate Recognition (100+ Countries), includes make and model

Object Search

Face Search (No Database

Face Recognition (from

License Plate Recognition

(100+ Countries), includes make and model

Intrusion Detection

Weapon Detection

Fire Detection

People Counting

Vehicle Counting

Temperature Detection

Health Analytics (Facemask Detection)

and Barcode Detection

Detection – Vehicle/Person wrong direction detection

Vehicle/Person

Loitering Detection

Parking Detection

QR and Barcode Detection

Live Camera View

Live Tracking

Abnormality Detection –

Vehicle/Person wrong direction detection

Vehicle/Person Loitering

Fall Detection

Illegal Parking Detection

Heatmap Generation

consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level

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IvedaAI products are designed to maximize efficiency, save time, and cut cost.

Users can set up alerts instead of watching hours of video recording after the fact.

offers many IoT sensors and devices for a variety of applications such as energy management, smart home, smart building, smart community,

and patient/elder care.

Together, our gateway and station serve as the main hub for sensors and devices in any given area.

They are equipped

with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB.

They connect to the Internet via Ethernet or cellular

data network.

Instead of watching hours of video recording after-the-fact, users can set up alerts.

offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and

patient/elder care.

Our gateway and station serve as the main hub for sensors and devices in any given area.

They are equipped with high-level

communication protocols such as Zigbee, WiFi, Bluetooth, and USB.

They connect to the Internet via Ethernet or cellular data network.

We provide IoT platforms that enable centralized device management and push digital services on a massive scale.

devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices.

Our smart devices include

water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices.

also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects.

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user interface.

roadmap includes a dashboard for all Iveda’s platforms for central device management.

Cerebro is system-agnostic and will support

cross-platform interoperability.

The common unified user interface will allow remote control of platforms, sensors, and subsystems throughout

an entire environment.

This integration and unification of all subsystems enable acquisition and analysis of all information on one central

command center, allowing comprehensive, effective, and overall management and protection of a city.

roadmap includes dashboard for all of Iveda’s platforms for central management of all devices.

Cerebro is system agnostic and will

support cross-platform interoperability.

The common unified user interface will allow remote control of platforms, sensors and subsystems

throughout an entire environment.

This integration and unification of all subsystems enable acquisition and analysis of all information

on one central command center, allowing comprehensive, effective, and overall management and protection of a city.

Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole

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valves, circuit breakers and sensors.

the last few years, smart city has been a hot topic among municipalities across the globe.

the last few years, the smart city concept has been a hot topic among cities across the globe.

With little to no human interaction, technology

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professionals from Taiwan Panasonic Company.

Iveda Taiwan, specializes in deploying new, and integrating existing, video surveillance

systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City initiatives

in Taiwan and other neighboring countries.

Iveda Taiwan combines security surveillance products, software, and services to provide integrated

security solutions to the end user.

Through Iveda Taiwan, we have access not only to Asian markets but also to Asian manufacturers and

engineering expertise.

Iveda Taiwan, our subsidiary in Taiwan, specializes in deploying new, and integrating existing,

video surveillance systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and

Safe City initiatives in Taiwan and other neighboring countries.

Iveda Taiwan combines security surveillance products, software, and

services to provide integrated security solutions to the end user.

Through Iveda Taiwan, we have access not only to Asian markets but

also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working with a team of developers

and managing our relationship with the Industrial Technology Research Institute (“ITRI”) in Taiwan.

Iveda Taiwan also houses

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The Company depends

on Iveda Taiwan as the majority of the company’s revenues have come from Iveda Taiwan since the acquisition in April 2011.

on Iveda Taiwan as the majority of the company’s revenues have come from Iveda Taiwan since we acquired them in April 2011.

the years ended December 31, 2022 and 2021, Iveda Taiwan’s operations accounted for 93% and 71% of our total revenue, respectively.

acquisition of Iveda Taiwan provided the following benefits to our business:

established presence and credibility in Asia and access to the Asian market.

Relationships

in Asia for cost-effective research and development of new product offerings and securing the best pricing for end user devices.

of products directly using Iveda Taiwan’s product sourcing expertise to enhance our custom integration capabilities.

to the global distribution potential for our products and services.

An established presence

and credibility in Asia and access to the Asian market.

Relationships in Asia for

cost-effective research and development of new product offerings and securing the best pricing for end user devices.

Sourcing of products directly

using Iveda Taiwan’s product sourcing expertise to enhance our custom integration capabilities.

Enhancements to the global

distribution potential for our products and services.

November 2012, we signed a cooperation agreement with ITRI, a research and development organization based in Taiwan.

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were no new standards recently issued which would have an impact on our operations or disclosures.

of Operations for the Three and Nine months Ended September 30, 2022 Compared with the Three and Nine months Ended September 30, 2021

recorded net consolidated revenue of $1.5 million for the three months ended September 30, 2022, compared with $0.4 million for the three

months ended September 30, 2021, an increase of $1.1 million, or 257%.

For the three months ended September 30, 2022, our equipment sales

and installation revenue was $1.36 million, or 93% of net revenue, and our service revenue was $.10 million, or 7% of net revenue.

fiscal 2021, our equipment sales and installation revenue was $.30 million, or 73% of consolidated net revenue, and our service revenue

was $.11 million, or 26% of net revenue.

The increase in total revenue in 2022 compared with the same period in fiscal 2021 is attributable

primarily to increased equipment and installation sales from Iveda Taiwan and Iveda US operations, $.7 million and $.4 million, respectively..

recorded net consolidated revenue of $2.3 million for the nine months ended September 30, 2022, compared with $1.3 million for the nine

months ended September 30, 2021, an increase of $1.0 million, or 80%.

For the nine months ended September 30, 2022, our equipment sales

and installation revenue was $2.14 million, or 91% of net revenue, and our service revenue was $.20 million, or 9% of net revenue.

fiscal 2021, our equipment sales and installation revenue was $1.08 million, or 83% of consolidated net revenue, and our service revenue

was $.22 million, or 17% of net revenue.

The increase in total revenue in 2022 compared with the same period in fiscal 2021 is attributable

primarily to increased equipment sales and installation revenue from Iveda Taiwan and Iveda US, $.6 million and $.4 million, respectively.

cost of revenue was $1.1 million (76% of revenue;

gross margin of 24%) for the three months ended September 30, 2022, compared with $0.14

million (33% of revenue;

67% gross margin) for the three months ended September 30, 2021, an increase of $.98 million, or 713%.

in cost of revenue was primarily driven by increased revenue.

The decrease in overall gross margin was also primarily attributed to the

increase in equipment sales versus the higher margin service revenue of Iveda Taiwan.

of Operations for the Three Months Ended March 31, 2023 Compared with the Three Months Ended March 31, 2022

recorded net consolidated revenue of $2.21 million for the three months ended March 31, 2023, compared with $0.23 million for the three

months ended March 31, 2022, an increase of ($1.98 million, or 855%.

For the three months ended March 31, 2023, our service revenue was

$0.20 million, or 9% of net revenue, and our equipment sales and installation revenue was $2.0 million, or 91% of net revenue.

three months ended March 31, 2022, our service revenue was $.04 million, or 18% of consolidated net revenue, and our equipment sales

and installation revenue was $.19 million, or 82% of net revenue.

The increase in total revenue in 2023 compared with the same period

in 2022 is attributable primarily to increased equipment sales from Iveda Taiwan as a result of delivery timing related to long-term

contracts awarded and started during 2022.

cost of revenue was $1.72 million (78% of revenue;

gross margin of 29%) for the nine months ended September 30, 2022, compared with $0.8

gross margin of 22%) for the three months ended March 31, 2023, compared with $0.09

million (39% of revenue;

40% gross margin) for the nine months ended September 30, 2021, an increase of $0.9 million, or 113%.

in cost of revenue was primarily driven by increased equipment sales revenues for Iveda Taiwan and Iveda US operations.

in overall gross margin was also primarily attributed to the increase in equipment sales versus the higher margin service revenue of

Iveda Taiwan.

expenses were $1.03 million for the three months ended September 30, 2022, compared with $0.70 million for the three months ended September

30, 2021, an increase of $0.33 million, or 48%.

This net increase in operating expenses in 2022 compared with 2021 is due primarily related

to a ramp up in personnel in the US based administrative, sales and technical support personnel as well as research and development expenses

expenses were $3.07 million for the nine months ended September 30, 2022, compared with $2.04 million for the nine months ended September

61% gross margin) for the three months ended March 31, 2022, an increase of ($1.63 million), or (1800%).

increase in cost of revenue was primarily driven by increased Iveda Taiwan revenue.

The decrease in overall gross margin was primarily

attributed to the more indicative and standard margin of Iveda Taiwan revenue as a result of additional long-term contracts awarded and

started during 2022.

expenses were $1.04 million for the three months ended March 31, 2023, compared with $0.8 million for the three months ended March 31,

2022, an increase of $0.25 million, or 31%.

This net increase in operating expenses in 2023 compared with 2022 is due primarily related

to a ramp up in personnel in the US based administrative, sales and technical support personnel as well as research and development expenses

to a ramp up in personnel in the US based administrative, sales and technical support personnel for IvedaAI as well as investor and public

relations expenses.

from Operations

from operations increased to $0.68 million for the three months ended September 30, 2022, compared with $0.42 million for the three months

ended September 30, 2021, an increase of $0.26 million, or 60%.

A majority of the increase in loss from operations was primarily due

to increased operating expenses.

from operations increased to $2.39 million for the nine months ended September 30, 2022, compared with $1.52 million for the nine months

ended September 30, 2021, an increase of $0.87 million, or 57%.

A majority of the increase in loss from operations was primarily due

to increased operating expenses.

Income (Expense)-Net

income (expense) -net was $10,593 for the three months ended September 30, 2022, compared with ($29,280) for the three months ended September

30, 2021, a change of $39,873.

The majority of the other expense for 2021 was interest expense and the majority of the other income for

2022 was interest earned.

income (expense) -net was $(8,242) for the nine months ended September 30, 2022, compared with ($256,535) for the nine months ended September

30, 2021, a decrease of $248,293, or 97%.

The majority of the other (expense) for 2021 was interest expense accrued for convertible debentures,

valuation of the convertible debenture features and the value of warrants given as incentive for the convertible debentures during 2021.

The significant decrease from 2021 to 2022 is related to the conversion of the majority of the convertible debentures in 2021 and interest

earned increase in 2022.

loss was $0.67 million for the three months ended September 30, 2022, compared with $0.45 million for the three months ended September

The increase of $0.22 million, or 47%, in net loss was caused primarily by an increase in operating expenses related to a ramp

up in personnel in the US-based administrative, sales and technical support personnel as well as research and development expenses for

loss was $2.4 million for the nine months ended September 30, 2022, compared with $1.78 million for the nine months ended September 30,

The increase of $0.62 million, or 35%, in net loss was caused primarily by a increase in operating expenses related to a ramp up

in personnel in the US-based administrative, sales and technical support personnel as well as research and development expenses for IvedaAI.

from operations decreased to $0.55 million for the three months ended March 31, 2023, compared with $0.65 million for the three months

ended March 31, 2022, a decrease of $0.10 million, or 15%.

A majority of the decrease in loss from operations was primarily due to increased

net revenues.

income (expense)-net was $19,000 of net income for the three months ended March 31, 2023, compared with ($12,000) of net expense for

the three months ended March 31, 2022, an increase of $31,000 of income, or 261%.

The majority of the other income for 2023 was interest

income from cash in the bank.

loss was $0.55 million for the three months ended March 31, 2023, compared with $0.67 million for the three months ended March 31, 2022.

The decrease of $0.12 million, or 17%, in net loss was caused primarily by a increase in due to increased net revenues offset by increased

operating expenses related to a ramp up in personnel in the US-based administrative, sales and technical support personnel for IvedaAI

as well as increased investor and public relations expenses.

and Capital Resources

of September 30, 2022, we had cash and cash equivalents of $10.6 million compared to $1.4 million as of September 30, 2021.

in our cash and cash equivalents is primarily a result of our stock offerings that closed April 2022 and August 2022 with net proceeds

of $11.5 million with an offset of the operating losses during the nine months ended September 30, 2022.

There are no legal or economic

factors that materially impact our ability to transfer funds between our U.S.-based and Taiwan-based segments.

cash used in operating activities during the nine months ended September 30, 2022 was $3.3 million compared to $1.2 million net cash

used during the nine months ended September 30, 2021.

Net cash used in operating activities for the nine months ended September 30, 2022

consisted primarily of the $2.4 million net loss including $0.26 million of non-cash charges (primarily common stock for services and

stock option compensation), $0.4 million of increased inventory, a decrease by $0.8 million in accrued expenses, and an increase of $0.1

million in accounts receivable.

Cash used in operating activities for the nine months ended September 30, 2021 consisted primarily of

the $1.8 million net loss including $0.3 million of non-cash charges (primarily common stock for services, interest value of convertible

debt features, value of warrants issued for interest and stock option compensation) offset primarily by $0.6 million in additional accounts

payable and accrued expenses.

cash used in investing activities for the nine months ended September 30, 2022 was $5,184.

Net cash used by investing activities during

the nine months ended September 30, 2021 was $17,352.

cash provided by financing activities for the nine months ended September 30, 2022 was $12.6 million compared with $2.2 million provided

during the nine months ended September 30, 2021.

Net cash provided by financing activities in 2022 is primarily a result of the proceeds

from equity offerings underwritten by Maxim Group in April 2022 and August 2022 for the nine months ended September 30, 2022.

provided by financing activities in 2021 consisted primarily of $2.1 million unregistered common stock sold at the U.S based operations.

of March 31, 2023, we had cash and cash equivalents of $8.4 million compared to $7.3 million as of March 31, 2022 and $0.82 million as

of March 31, 2022.

This increase in our cash and cash equivalents for the three months ended March 31, 2023 is related to the exercise

of 945,900 warrants at $1.40 with net proceeds of $1.3 Million offset by of the operating losses during the three months ended March

There are no legal or economic factors that materially impact our ability to transfer funds between our U.S.-based and Taiwan-based

cash provided in operating activities during the three months ended March 31, 2023 was $0.17 million compared to ($0.77) million net

cash used during the three months ended March 31, 2022.

Net cash provided in operating activities for the three months ended March 31,

2023 consisted primarily of the $0.72 million net collection of accounts receivable offset by net loss of ($0.55) million.

Other factors

for the three months ended March 31, 2023 included $0.35 cash provided from the reduction of inventory and other current assets offset

by cash used to decrease $0.33 million of accrued expenses.

Net cash used in operating activities for the three months ended March 31,

2022 consisted primarily of the $0.67 million net loss including $0.07 million of non-cash charges (primarily stock option compensation),

$0.24 of inventory and a decrease by $0.3 million in additional accrued expenses offset by a decrease of $0.3 million in accounts receivable.

cash used in investing activities for the three months ended March 31, 2023 was $0.18 million consisting primarily of the development

of additional IvedaAI platforms.

Net cash used by investing activities during the three months ended March 31, 2022 was $4,696.

cash provided by financing activities for the three months ended March 31, 2023 was $1.07 million compared with $$0.15 million provided

during the three months ended March 31, 2022.

This increase in our cash and cash equivalents for the three months ended March 31, 2023

is related primarily to the exercise of 945,900 warrants at $1.40 with net proceeds of $1.3 Million offset by $0.25 payments against

short and long term loans in Taiwan during the three months ended March 31, 2023.

Net cash provided by financing activities in 2022 of

$0.15 million is primarily a result of the proceeds from bank loans in Taiwan for the three months ended March 31, 2022.

have experienced significant operating losses since our inception.

At September 30, 2022, we had approximately $29 million in net operating

At March 31, 2023, we had approximately $32 million in net operating

loss carryforwards available for federal income tax purposes, which will begin to expire in 2025.

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For our U.S.-based segment,

we had no doubtful accounts receivable allowances for the nine months ended September 30, 2022 and year ended December 31, 2021.

our Taiwan-based segment, we set up no doubtful accounts receivable allowances for the nine months ended September 30, 2022 and year

ended December 31, 2021.

We deem the rest of our accounts receivable to be collectible based on certain factors, including the nature

of the customer contracts and past experience with similar customers.

Delinquent receivables are written off based on individual credit

valuation and specific circumstances of the customer, and we generally do not charge interest on past due receivables.

COVID-19 pandemic represents a fluid situation that presents a wide range of potential impacts of varying durations for different global

geographies, including locations where the Company has offices, employees, customers, vendors and other suppliers and business partners.

most businesses, the COVID-19 pandemic and efforts to mitigate the same began to have impacts on our business in March 2020.

time, much of our first fiscal quarter was completed.

During the remainder of 2020 and the first quarter of 2021, the Company observed

decreases in demand from certain customers, including primarily municipalities and commercial customers in Taiwan as well as delays in

project timelines in Taiwan.

The Company estimates that the COVID-19 pandemic resulted in decreases of approximately $1.2 million revenues

and $0.3 million gross profit contribution for the twelve months ended March 31, 2021 and $0.2 million revenues and $0.05 million gross

profit contribution for the three months ended March 31, 2021.

However, the Company is beginning to experience an increase in demand

for the twelve months ended March 31, 2022, compared to the last half of 2020.

the fact that the Company’s products are sold through a variety of distribution channels, the Company expects its sales will experience

more volatility as a result of the changing and less predictable operational needs of many customers as a result of the COVID-19 pandemic.

The Company is aware that many companies, including many of its suppliers and customers, are reporting or predicting negative impacts

from COVID-19 on future operating results.

Although the Company observed significant declines in demand for its products from certain

customers during 2020 and the first quarter of 2021, the Company believes that the impact of the COVID-19 remains too fluid and unknown,

hindering the Company from determining the long-term demand for current products.

The Company also cannot be certain how demand may shift

over time as the impacts of the COVID-19 pandemic may go through several phases of varying severity and duration.

Company does not expect there to be material changes to its assets on its balance sheet or its ability to timely account for those assets.

The Company has also reviewed the potential impacts on future risks to the business as it relates to collections, returns and other business-related

date, travel restrictions and border closures have not materially impacted its ability to obtain inventory or manufacture or deliver

products or services to customers.

However, if such restrictions become more severe, they could negatively impact those activities in

a way that would harm the business over the long term.

Travel restrictions impacting people can restrain our ability to assist its customers

and distributors as well as impact its ability to develop new distribution channels, but at present the Company does not expect these

restrictions on personal travel to be material to our business operations or financial results.

The Company has taken steps to restrain

and monitor its operating expenses and therefore it does not expect any such impacts to materially change the relationship between costs

and revenues.

most companies, the Company has taken a range of actions with respect to how it operates to assure it complies with government restrictions

and guidelines as well as best practices to protect the health and well-being of its employees and its ability to continue operating

its business effectively.

To date, the Company has been able to operate its business effectively using these measures and to maintain

internal controls as documented and posted.

The Company also has not experienced challenges in maintaining business continuity and does

not expect to incur material expenditures to do so.

However, the impacts of COVID-19 and efforts to mitigate the same have remained unpredictable

and it remains possible that challenges may arise in the future.

actions the Company has taken so far during the COVID-19 pandemic include, but are not limited to, requiring all employees who can work

from home to work from home and increasing its IT networking capability to best assure employees can work effectively outside the office.

Company currently believes revenue for the year ending December 31, 2021 has been impacted due to the conditions noted.

Company’s current cash position and its projected cash flow from operations, the Company believes that it will have sufficient

capital and or have access to sufficient capital through public and private equity and debt offerings to sustain operations for a period

of one year following the date of this filing.

If business interruptions resulting from the COVID-19 pandemic were to be prolonged or

expanded in scope, the business, financial condition, results of operations and cash flows would be negatively impacted.

will continue to actively monitor this situation and will implement actions necessary to maintain business continuity.

we had no doubtful accounts receivable allowances for the three months ended March 31, 2023 and year ended December 31, 2022.

Taiwan-based segment, we set up no doubtful accounts receivable allowances for the three months ended March 31, 2023 and year ended December

We deem the rest of our accounts receivable to be collectible based on certain factors, including the nature of the customer

contracts and past experience with similar customers.

Delinquent receivables are written off based on individual credit valuation and

specific circumstances of the customer, and we generally do not charge interest on past due receivables.

the periods for which financial information is presented, we do not believe that the current levels of inflation in the United States

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if we had engaged in such relationships.

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

are a smaller reporting company as defined by 17 C.F.R.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements