What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-08-14 compared with 2023-05-15 · 210 added, 179 removed, 788 unchanged (33% of the section changed)

2 unchanged sentences

30, 2023 AND DECEMBER 31, 2022

June 30, 2023

December 31, 2022

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LONG-TERM DEBT

LONG-TERM DIVIDENDS PAYABLE

STOCKHOLDERS’ EQUITY

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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

500 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

Common Stock, $ 0.00001 par value;

100,000,000 shares authorized;

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

16,012,639 and 15,066,739 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

Additional Paid-In Capital

Joint Venture Non-Controlled Portion

Accumulated Comprehensive Loss

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STATEMENTS OF OPERATIONS

THE THREE MONTHS ENDED MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2021

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

For the Three

June 30, 2023

For the Three

June 30, 2022

June 30, 2023

June 30, 2022

Equipment Sales

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LOSS FROM OPERATIONS

( 1,058,188 )

( 1,371,208 )

( 1,709,804 )

OTHER INCOME (EXPENSE)

3 unchanged sentences

Total Other Income (Expense)

Joint Venture Non-Controlled Interest

LOSS BEFORE INCOME TAXES

( 1,064,978 )

( 1,289,045 )

( 1,728,640 )

BENEFIT (PROVISION) FOR INCOME TAXES

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$ ( 1,064,900 )

$ ( 1,307,635 )

$ ( 1,731,698 )

BASIC AND DILUTED LOSS PER SHARE

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Exercise of warrants issued August 2022

Common Stock issued for services

Joint Venture Non-Controlled Interest

( 1,307,635 )

Comprehensive Loss

BALANCE AT March 31, 2023 (UNAUDITED)

BALANCE AT June 30, 2023 (UNAUDITED)

$ ( 46,014,306 )

8 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDING MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2022

THE SIX MONTHS ENDING JUNE 30, 2023 AND 2022

June 30, 2023

June 30, 2022

CASH FLOWS FROM OPERATING ACTIVITIES

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Stock Option Compensation

Common Stock Warrants Issued for Services

Common Stock Issued for Services

Common Stock Warrants Issued for Interest

4 unchanged sentences

Net Cash Used in Operating Activities

( 2,183,116 )

CASH FLOWS FROM INVESTING ACTIVITIES

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Proceeds from (Payments to) Long-Term Debt

Philippines Joint Venture Non-Controlled portion

Payments for Deferred Finance Costs

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CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE THREE MONTHS ENDING MARCH 31, 2023 AND 2021

March 31, 2023

March 31, 2022

THE SIX MONTHS ENDING JUNE 30, 2023 AND 2022

June 30, 2023

June 30, 2022

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

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SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Common Stock issued for Consulting Agreements related to Cost of Capital

Dividends Paid with Series B Preferred Stock

Warrants Issued for Interest

Warrants Issued for Services

Common Stock issued for services

accompanying Notes to Condensed Consolidated Financial Statements.

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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.

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

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

wrist watch and tracking devices.

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.

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 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.

roadmap includes a 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

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

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efficiency, expedites decision making, and reduces response time.

Dwindling public safety budgets and resources has necessitated the

Dwindling public safety budgets and resources have necessitated this

transformation.

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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.

and Improving City Services

Emergency Response Times

& Hazard Protection

and Improving Air Quality

Monitoring and Mobility as a Service

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 for real-time

monitoring, fall detection, medication reminders and more.

With IvedaCare, you not only can monitor your home and loved ones from

afar, but can potentially make life-saving decisions 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.

If the Trusted

Circle is unavailable, our emergency call center will dispatch emergency services quickly.

Historically,

we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and

We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety

of businesses and organizations.

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

to provide IP cameras and NVRs based on customer specifications.

We still utilize ONVIF (Open Network Video Interface Forum) cameras

which is a global standard for the interface of IP-based physical security products.

We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a

variety of businesses and organizations.

While we previously 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.

now have the capability to provide IP cameras and NVRs based on customer specifications.

We still utilize ONVIF (Open Network Video

Interface Forum) cameras, which are a global standard for the interface of IP-based physical security products.

2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers

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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

Insurance Corporation) with maximum coverage of NTD 3 million.

At times, amounts on deposit in Taiwan may be in excess of the CDIC Insurance

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 Insurance Corporation) with maximum coverage of NTD 3 million.

At times, amounts on deposit in Taiwan may be

in excess of the CDIC Insurance limit.

receivables are unsecured, and we are at risk to the extent such amount becomes uncollectible.

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OF ACCOUNTS AND OTHER PAYABLES

March 31, 2023

June 30, 2023

December 31, 2022

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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.

six months ended June 30, 2023.

Value of Financial Instruments

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

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of June 30, 2023

and December 31, 2022.

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

March 31, 2023 (UNAUDITED)

June 30, 2023 (UNAUDITED)

Net Assets (Liabilities)

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OF SHORT-TERM DEBT

March 31, 2023

June 30, 2023

December 31, 2022

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 .

Loan Agreement with Shanghai Bank at 3.06 % interest rate per annum due August 2023 and January 2024 .

Loan agreement with HuaNam Bank at 3.43 % interest rate per annum due November 2023 .

Loan agreement with Shanghai Bank at 2.94 % interest rate per annum due September 2022 .

Repaid January and March 2023

2 unchanged sentences

OF LONG-TERM DEBT

March 31, 2023

June 30, 2023

December 31, 2022

51 unchanged sentences

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.

For the six months ended June 30, 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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earnings per share (“EPS”) is computed by dividing reported earnings available to stockholders by the weighted average shares

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.

We had net losses for the six months ended June 30, 2023 and 2022 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 Six months ended

June 30, 2023 and 2022.

SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED

March 31, 2023

March 31, 2022

June 30, 2023

June 30, 2022

$ ( 1,307,635 )

8 unchanged sentences

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 .

in the future as of June 30, 2023 is $ 297,424 .

10 SUBSEQUENT EVENTS

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did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial

Financial Information.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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

Search (No Database Required)

Recognition (from a Database)

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

Health Analytics (Facemask 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

and Barcode Detection

Detection – Vehicle/Person wrong direction detection

Vehicle/Person

Loitering Detection

Parking Detection

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

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.

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.

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 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

of Operations for the Three and Six Months Ended June 30, 2023 Compared with the Three and Six Months Ended June 30, 2022

recorded net consolidated revenue of $2.39 million for the three months ended June 30, 2023, compared with $0.65 million for the three

months ended June 30, 2022, an increase of ($1.74 million, or 267%.

For the three months ended June 30, 2023, our service revenue was

$0.08 million, or 3% of net revenue, and our equipment sales and installation revenue was $2.32 million, or 97% 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.

three months ended June 30, 2022, our service revenue was $.06 million, or 9% of consolidated net revenue, and our equipment sales and

installation revenue was $.59 million, or 91% 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 and additional government agency contracts.

recorded net consolidated revenue of $4.60 million for the six months ended June 30, 2023, compared with $0.88 million for the six months

ended June 30, 2022, an increase of $3.71 million, or 421%.

For the six months ended June 30, 2023, our service revenue was $0.28 million,

or 6% of net revenue, and our equipment sales and installation revenue was $4.32, or 94% of net revenue.

In fiscal 2022, our service

revenue was $0.10, or 12% of consolidated net revenue, and our equipment sales and installation revenue was $0.78, or 88% 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 and additional government

agency contracts.

cost of revenue was $2.11 million (88% of revenue;

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

gross margin of 12%) for the three months ended June 30, 2023, compared with $0.46

million (71% of revenue;

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,

29% gross margin) for the three months ended June 30, 2022, an increase of ($1.65 million), or (356%).

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 lower margin, larger long-term contracts

awarded and started during 2022.

cost of revenue was $3.83 million (83% of revenue;

gross margin of 17%) for the six months ended June 30, 2023, compared with $0.55 million

(63% of revenue;

37% gross margin) for the six months ended June 30, 2022, an increase of $3.28 million, or 593%.

The 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 lower margin, larger long-term contracts awarded

and started during 2022.

expenses were $1.1 million for the three months ended June 30, 2023, compared with $1.2 million for the three months ended June 30, 2022,

a decrease of $0.15 million, or 12%.

This net decrease in operating expenses in 2023 compared with 2022 is due primarily related to a

stabilization in personnel in the US based administrative, sales and technical support personnel for IvedaAI and reduced travel during

the three months ended June 30, 2023.

expenses were $2.1 million for the six months ended June 30, 2023, compared with $2.0 million for the six months ended June 30, 2022,

an increase of $0.1 million, or 5%.

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 for IvedaAI as well as investor and public

relations expenses.

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

to a stabilization in personnel in the US based administrative, sales and technical support personnel for IvedaAI and increased investor

and public relations for the six months ended June 30, 2023.

from Operations

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%.

from operations decreased to $0.82 million for the three months ended June 30, 2023, compared with $1.06 million for the three months

ended June 30, 2022, a decrease of $0.24 million, or 22%.

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.

from operations decreased to $1.4 million for the six months ended June 30, 2023, compared with $1.7 million for the six months ended

June 30, 2022, a decrease of $0.34 million, or 20%.

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

net revenues.

income (expense)-net was approximately $2,800 of net other income for the three months ended June 30, 2023, compared with ($6,800) of

net other expense for the three months ended June 30, 2022, an increase of $9,600 of net other income.

The majority of the increase in

other income for 2023 was interest income from cash in the bank.

income (expense)-net was approximately $22,000 for the six months ended June 30, 2023, compared with ($18,000) for the six months ended

June 30, 2022, an increase of $41,000 other income.

The majority of the increase in other income for 2023 was interest income from cash

Joint Venture (JV)

consolidate the financial statements of the JV and recorded approximately $60,000 of offset related to the non-controlled portion of

the JV loss for the three and six months ended June 30, 2023.

loss was $0.76 million for the three months ended June 30, 2023, compared with $1.06 million for the three months ended June 30, 2022.

The decrease of $0.31 million, or 29%, in net loss was primarily the result of increased net revenues in Iveda Taiwan.

loss was $1.3 million for the six months ended June 30, 2023, compared with $1.7 million for the six months ended June 30, 2022.

decrease of $0.36 million, or 21%, in net loss was primarily the result of increased net revenues in Iveda Taiwan.

and Capital Resources

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.

of June 30, 2023, we had cash and cash equivalents of $8.6 million compared to $7.3 million as of December 31, 2022.

This increase in

our cash and cash equivalents for the six months ended June 30, 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 six months ended June 30, 2023.

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 provided in operating activities during the six months ended June 30, 2023 was $0.85 million compared to ($2.18) million net cash

used during the six months ended June 30, 2022.

Net cash provided in operating activities for the six months ended June 30, 2023 consisted

primarily of the $0.93 million net collection of accounts receivable and an increase of $0.82 of accounts and other payables offset by

net loss of ($1.3) million.

Other factors for the six months ended June 30, 2023 included $0.21 cash provided from the reduction of inventory.

Net cash used in operating activities for the six months ended June 30, 2022 consisted primarily of the ($1.7) million net loss including

$0.26 million of non-cash charges (primarily stock option compensation and stock for services).

An increase in inventory used $0.29 and

a decrease by $0.83 million in additional accounts and other payables offset by a decrease of $0.37 million in accounts receivable.

cash used in investing activities for the six months ended June 30, 2023 was $0.44 million consisting primarily of the development of

additional IvedaAI platforms.

Net cash used by investing activities during the six months ended June 30, 2022 was $1,964.

cash provided by financing activities for the six months ended June 30, 2023 was $.94 million compared with $7.0 million provided during

the six months ended June 30, 2022.

This increase in our cash and cash equivalents for the six months ended June 30, 2023 is related

primarily to the exercise of 945,900 warrants at $1.40 with net proceeds of $1.3 million offset by $0.36 million payments against short

and long term loans in Taiwan during the six months ended June 30, 2023.

Net cash provided by financing activities in 2022 of $7.0 million

is primarily a result of the proceeds from the stock offering that closed April 2022.

have experienced significant operating losses since our inception.

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

At June 30, 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 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.

we had no doubtful accounts receivable allowances for the six months ended June 30, 2023 and year ended December 31, 2022.

For our Taiwan-based

segment, we set up no doubtful accounts receivable allowances for the six months ended June 30, 2023 and year ended December 31, 2022.

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.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

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