What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2024-04-01 compared with 2023-03-31 · 305 added, 232 removed, 1143 unchanged (32% of the section changed)

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9B – OTHER INFORMATION

Corporate Governance

the period covered by this Annual Report on Form 10-K,

there were no changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors.

Insider Trading Arrangements and Policies

the quarter ended December 31, 2023, no director or officer of the Company “ adopted ” or “ terminated ” a “Rule

10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

10 – DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

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forth below is information concerning our directors, director nominees, executive officers and other key employees.

Executive Officer and Chairman of the Board of Directors

Kuang Sid Sung

Executive Officer, Chairman of the Board of Directors and President

Financial Officer, Treasurer and Corporate Secretary

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our Board of Directors.

Sung has served as our President since January 2020.

Sung was President from July 2017 to December 2019 and a director from March

2015 to December 2019 of People Power Company, an IoT platform solutions provider.

He served as Board Advisor and IoT Consultant from

February 2014 to December 2019 at CVS Capital, a venture capital company focusing on IT & semiconductor field and Twoway Communications,

a CATV and fiber communications equipment provider, and Xingtera, a home networking semiconductor and IoT solution provider.

was the Cofounder and Chief Operating Officer at Connected IO, a machine-to-machine product and solution provider for telcos, from October

2013 to October 2017.

He was also Vice President from May 2011 to January 2014 at Lite ON Technology, an OEM/ODM contract manufacturer.

Sung served as General Manager at SMC Networks, a leading cable gateway and home security solutions provider, from August 2007 to

July 2010 and as Vice President at Accton Technology, a global provider of networking and communications solution, from March 2006 to

Sung was the founder and CEO of Alpha Telecom, a next generation CPE provider, from September 1994 to March 2006.

Sung holds a master’s degree in Electrical Engineering at the University of Alabama Huntsville and a Bachelor of Science Degree

in Atmospheric Science at National Taiwan University.

Brilon has served as our Chief Financial Officer since December 2013.

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December 2008 to August 2010.

Brilon is a Board Director and independent contract CFO for Bitech Technologies Corporation from October

2021 to present.

Brilon joined New Gen Management Services, Inc.

in July 2017 as the CFO (subsequently becoming President

and CFO of New Gen in July 2018).

Brilon was the President, Chief Financial Officer, Corporate Secretary, and Director of both Vext

Science, Inc and New Gen until he resigned in February 2020.

Brilon served as Chief Financial Officer and Executive Vice President

of Business Development of Brain State Technologies, a brainwave optimization software licensing and hardware company, from August 2010

to November 2013.

in July 2017 as the CFO (subsequently becoming President and CFO

of New Gen in July 2018).

Brilon was the President, Chief Financial Officer, Corporate Secretary, and Director of both Vext Science,

Inc and New Gen until he resigned in February 2020.

Brilon served as Chief Financial Officer and Executive Vice President of Business

Development of Brain State Technologies, a brainwave optimization software licensing and hardware company, from August 2010 to November

From January 2010 to August 2010, Mr.

Brilon served as Chief Financial Officer of MD Helicopters, a manufacturer of

commercial and light military helicopters.

Brilon also served as Chief Executive Officer, President, and Chief Financial Officer

of InPlay Technologies (NASDAQ:

Brilon served as Chief Financial Officer of MD Helicopters, a manufacturer of commercial

and light military helicopters.

Brilon also served as Chief Executive Officer, President, and Chief Financial Officer of InPlay Technologies

NPLA), formerly, Duraswitch (NASDAQ:

DSWT), a company that licensed patented electronic switch technology

and manufactured digital pen technology, from November 1998 to June 2007.

Brilon served as Chief Financial Officer of Gietz Master

Builders from 1997 to 1998, Corporate Controller of Rental Service Corp.

RRR) from 1995 to 1996, Chief Financial Officer and Vice

President of Operations of DataHand Systems, Inc.

DSWT), a company that licensed patented electronic switch technology and manufactured digital

pen technology, from November 1998 to June 2007.

Brilon served as Chief Financial Officer of Gietz Master Builders from 1997 to 1998,

Corporate Controller of Rental Service Corp.

RRR) from 1995 to 1996, Chief Financial Officer and Vice President of Operations

of DataHand Systems, Inc.

from 1993 to 1995, and Chief Financial Officer of Go-Video (AMEX:VCR) from 1986 to 1993.

Brilon is a certified public accountant and practiced with several leading accounting firms, including McGladrey Pullen, Ernst

and Young and Deloitte and Touche.

Brilon is a certified

public accountant and practiced with several leading accounting firms, including McGladrey Pullen, Ernst and Young and Deloitte and Touche.

Brilon holds a Bachelor of Science degree in Business Administration from the University of Iowa.

Omi has served is our new Chief Technology Officer since May 2021.

Omi has served as our Chief Technology Officer since May 2021.

Omi served as director of our company from October

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Farnsworth has also served as a director of The Farnsworth Companies since 2008.

Farnsworth has also served as a director of Venture West Aviation since 2022.

From 1990 to 1995, Mr.

Farnsworth served as President of Alfred’s International, with operations in China and Korea.

Prior to that,

Farnsworth served as President of Farnsworth International, a real estate investment company based in Taipei, Taiwan from 1987 to

Farnsworth holds a Bachelor of Science degree in Real Estate Finance from Brigham Young University and is a licensed real estate

broker in Arizona.

Farnsworth served as President

of Alfred’s International, with operations in China and Korea.

Prior to that, Mr.

Farnsworth served as President of Farnsworth

International, a real estate investment company based in Taipei, Taiwan from 1987 to 1991.

Farnsworth holds a Bachelor of Science

degree in Real Estate Finance from Brigham Young University and is a licensed real estate broker in Arizona.

We believe Mr.

Farnsworth’s experience leading companies with operations in Asia and his business and management

skills provide the requisite qualifications, skills, perspectives, and experience that make him well qualified to serve on our Board

of Directors.

experience leading companies with operations in Asia and his business and management skills provide the requisite qualifications, skills,

perspectives, and experience that make him well qualified to serve on our Board of Directors.

Franco has served as a director of our company since November 2011.

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executive officers whose total compensation exceeded US $100,000 (the “named executive officers”).

and Principal Position

Other Compensation (4)

and Chief Executive Officer

Financial Officer, Treasurer and Corporate Secretary

Name and Principal Position

Warrants Awards (2)

All Other Compensation (4)

Chairman and Chief Executive Officer

Former President (6)

Chief Financial Officer, Treasurer and Corporate Secretary

Berg Former Chief Operating Officer

Marketing Officer and Corporate Secretary (5)

Technology Officer

Chief Marketing Officer and Corporate Secretary (5)

Chief Technology Officer

amounts in this column reflect the amounts earned during the fiscal year, whether or not actually paid during such year.

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amounts in this column reflect the amount of perquisites related to a vehicle allowance.

Resigned effective December 31, 2022.

effective December 31, 2022.

effective December 31, 2023.

Equity Awards as of December 31, 2023

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Name and Principal Position

Number of Securities Underlying Unexercised Options/Warrants (#) Exercisable

Number of Securities Underlying Unexercised Options (#) Unexercisable

Number of Securities Underlying Unexercised

Options/Warrants (#) Exercisable

Number of Securities Underlying Unexercised

Options (#) Unexercisable

Equity Incentive Plan Awards:

Number of Securities Underlying Unexercised Unearned Options (#)

Option Exercise

of Securities Underlying Unexercised Unearned Options (#)

Option Exercise Price ($)

Option Expiration Date

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and Corporate Secretary (resigned effective 12/31/2022)

President (resigned effective 12/31/2023)

options became fully vested on the date of grant.

The options became fully vested on December 31, 2023.

Compensation Plans

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directors receive stock-based compensation for their service on our Board of Directors and are reimbursed for their cost of attending

For the year ended December 31, 2022, Joseph Farnsworth received 15,000 options and Alejandro Franco and Robert Gillen received

11,250 options to purchase shares of our common stock as compensation for services during the year ended December 31, 2021.

ended December 31, 2020, Joseph Farnsworth received 9,375 options and Alejandro Franco and Robert Gillen received 6,250 options to purchase

For the year ended December 31, 2023, Joseph Farnsworth, Alejandro Franco and Robert Gillen received 50,000 options to purchase

shares of our common stock as compensation for services during the year ended December 31, 2023.

We do not pay additional compensation

to our directors for their service, either as Chair or as a member, on the Audit Committee, Compensation Committee, or Nominations and

Corporate Governance Committee.

For the year ended December 31, 2022,

Joseph Farnsworth received 15,000 options and Alejandro Franco and Robert Gillen received 11,250 options to purchase shares of our common

stock as compensation for services during the year ended December 31, 2022.

We do not pay additional compensation to our directors for

their service, either as Chair or as a member, on the Audit Committee, Compensation Committee, or Nominations and Corporate Governance

Fees Earned or paid in Cash $

Stock Awards $

2023 Options Awards

Non-Equity Incentive Plan Compensation

Nonqualified Deferred Compensation Earnings $

Nonqualified Deferred Compensation

All Other Compensation

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Gillen had outstanding options to purchase 128,750 shares of our common stock.

Incentive-Based Compensation

Recovery Policy

The Company adopted an Incentive-Based Compensation Recovery Policy in order to comply with Nasdaq Listing Rules

and Rule 10D-1 under the Exchange Act.

In the event the Company is required to prepare an accounting restatement to correct an error in

previously issued financial statements that is material to the previously issued financial statements or that would result in a material

misstatement if the error were corrected in the current period or left uncorrected in the current period, subject to the terms of the

policy, the Company must recover reasonably promptly from its current and former executive officers the amount of any erroneously awarded

incentive based compensation received on or after October 2, 2023 and during the three years preceding the date that the Company is required

to prepare such accounting restatement.

12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

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and investment power with respect to the stock indicated, and the address for each beneficial owner is c/o Iveda Solutions, Inc., 1744

Val Vista Drive, Mesa, Arizona 85204.

Val Vista Drive, Suite 213, Mesa, Arizona 85204.

Name of Beneficial Owner

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options to purchase 75,000 shares of common stock, which are exercisable within 60 days of December 31, 2023.

options to purchase 68,750 shares of common stock, which are exercisable within 60 days of December 31, 2022.

of (a) options to purchase 118,125 shares of common stock, which are exercisable within 60 days of December 31, 2022, and b) 19,925

shares of common stock held by Farnsworth Realty, an entity owned by Mr.

of (a) options to purchase 168,125 shares of common stock, which are exercisable within 60 days of December 31, 2023, (b) 19,925 shares

of common stock held by Farnsworth Realty, an entity owned by Mr.

Farnsworth and (c) 87,018 shares of common stock.

of (a) options to purchase 123,750 shares of common stock, which are exercisable within 60 days of December 31, 2023, and (b) 31,250

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by our stockholders and under equity compensation plans not approved by our stockholders as of December 31, 2023.

Number of securities to be issued upon exercise of outstanding options, warrants and rights

Weighted-average exercise price of outstanding options, warrants and rights

Number of securities remaining available for future issuance under equity compensation plans

Number of securities to be issued

upon exercise of outstanding options, warrants and rights

Weighted-average exercise price of

outstanding options, warrants and rights

Number of securities remaining available

for future issuance under equity compensation plans

Equity compensation plans approved by stockholders (1)

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Certification of Principal Financial Officer Pursuant to Section 1350

Compensation Recovery Policy of Iveda Solutions, Inc.

XBRL Instance Document

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on its behalf by the undersigned, thereunto duly authorized.

March 31, 2023

April 1, 2024

SOLUTIONS, INC.

Executive Officer and Chairman

March 31, 2023

April 1 , 2024

SOLUTIONS, INC.

Financial Officer and Treasurer

Financial Officer, Treasurer and Secretary

to the requirements of Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant

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Executive Officer and Chairman

April 1 , 2024

Executive Officer)

Financial Officer, Treasurer

Financial Officer, Treasurer and Secretary

April 1 , 2024

Financial and Accounting Officer)

Joseph Farnsworth

April 1 , 2024

Alejandro Franco

April 1 , 2024

TO CONSOLIDATED FINANCIAL STATEMENTS

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a reasonable basis for our opinion.

BF Borgers CPA PC

Borgers CPA PC (PCAOB ID 5041)

audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be

communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and

(2) involved our especially challenging, subjective, or complex judgments.

determined that there are no critical audit matters.

BF Borgers CPA PC (PCOAB ID 5041 )

have served as the Company’s auditor since 2021

SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

BALANCE SHEETS

31, 2023 AND 2022

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Accounts and Other Payables

Due to Related Parties

Short Term Debt

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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, 0 and 257.2 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively

500 shares authorized, no shares issued and outstanding

as of December 31, 2023 and December 31, 2022.

Preferred Stock, value

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100,000,000 shares authorized;

15,066,739 and 9,668,369 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively

16,169,891 and 15,066,739 shares

issued and outstanding as of December 31, 2023 and December 31, 2022, respectively

Additional Paid-In Capital

Joint Venture Non-Controlled Equity Portion

Accumulated Comprehensive Loss

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( 44,706,671 )

Total Stockholders’ Equity (Deficit)

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

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Total Other Income (Expense)

Joint Venture Non-Controlled Interest

LOSS BEFORE INCOME TAXES

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$ ( 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 )

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Comprehensive Loss

8 for 1 conversion adjustment

BALANCE AT December 31, 2022

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$ ( 44,706,671 )

Balance, value

$ ( 220,643 )

$ ( 143,493 )

$ ( 777,279 )

Costs of Capital

( 1,613,470 )

( 1,163,918 )

Stock Based Compensation

Common Stock issued for conversion error

Exercise of warrants issued August 2022

Common Stock issued for services

Warrants for Services

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

Joint Venture Non-Controlled Equity Interest

( 3,235,124 )

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Comprehensive Loss

8 for 1 conversion adjustment

BALANCE AT December 31, 2023

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$ ( 222,380 )

Balance, value

$ ( 47,941,796 )

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SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS

31, 2023 AND 2022

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Increase (Decrease) in Accounts and Other Payables

( 1,238,379 )

Net Cash Used in Operating Activities

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Proceeds from (Payments to) Long-Term Debt

Payments for Deferred Finance Costs

Joint Venture Non-Controlled Equity Portion

Common Stock Issued, Net of (Cost of Capital)

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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

( 2,557,499 )

Cash and Cash Equivalents- Beginning of Period

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SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

STATEMENTS OF CASH FLOWS - CONTINUED

THE YEARS ENDING DECEMBER 31, 2023 AND 2022

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SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Debenture Principal converted to Common Stock

Debenture Accrued Interest converted to Common Stock

Rent Accounts Payable to related Party converted to Common Stock

Accounts Payable converted to Common Stock

Common Stock issued for Consulting Agreements related to Cost of Capital

Dividends Paid with Series B Preferred Stock

Accrued Dividends converted to Common Stock

accompanying Notes to 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 provide true intelligence to any video surveillance

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

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

Our evolution is in response to digital transformation demands from many cities

and organizations across the globe.

Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video

surveillance systems.

IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management

systems (VMS).

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

Iveda also offers smart utility, smart sensors, gateways and trackers.

evolution is in response to digital transformation demands from many cities and organizations across the globe.

Our IvedaAI® intelligent

video search technology adds critical intelligence to normally passive video surveillance systems.

IvedaAI provides AI functions to any

IP camera and most popular network video recorders (NVR) and video management systems (VMS).

IvedaAI comes with an appliance or server,

preconfigured with multiple AI functions based on the end user requirements.

Search (No Database Required)

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Parking Detection

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

or data center for centralized cloud model.

We combined hardware and artificial intelligence software for fast and efficient video search

for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera.

works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across

dozens to thousands of cameras in less than 1 second.

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

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

level or data center for centralized cloud model.

We combined hardware and artificial intelligence software for fast and efficient video

search for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera.

works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search

across dozens to thousands of cameras in less than 1 second.

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

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.

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

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, care watch and tracking devices.

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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payment system.

Cerebro manages all the components of our smart power technology including statistics on energy consumption.

Cerebro is a software platform

designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive

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.

Cerebro is a software technology platform that integrates a multitude of disparate systems for central access and management of applications,

subsystems, and devices throughout an entire environment.

It is system agnostic and will support cross-platform interoperability.

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

It provides remote access to a

Dashboard for a single user interface, providing convenient anywhere, anytime access and analysis of relevant information in a timely

manner for managing an entire organization or city.

Cerebro links city systems and subsystems inseparably to each other.

This integration

and unification of all subsystems enable acquisition and analysis of all information on one central entity allowing comprehensive, effective

and overall management and protection of a city.

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

This completes our digital transformation solution crucial in smart

city deployments as well as in large organizations.

We offer smart power technology for office buildings, schools, shopping centers,

hotels, hospitals, and smart city projects.

This product includes smart power, water meter, smart lighting controls systems, and smart

payment system.

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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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

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 with power We 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

Our smart pole offering is also ideal for:

or large-scale city deployments

and Improving City Services

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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.

is an AI vision software that uses video taken on IP cameras, AR glasses, Androids, and tablets to analyze and process data in real-time.

vumastAR is fully customizable to the user’s needs, with one short video the AI can be trained in as little as two hours.

in multiple industries for uses such as:

and Maintenance Exams:

vumastAR has the power to assist with critical measuring of carcinogenic chemical compound levels, electrical

wiring, and welding inspections.

and Line Work:

Fast and accurate machine recognition enables itemized counting, inventory audits, and assembly kitting.

Accurately identify and quantify medication, greatly reducing the manual labor of counting pills while eliminating human error.

Detect defects and anomalies for improved accuracy, increasing the bottom line by actively reducing lost revenue incurred

from manual mistakes.

Manufacturing:

Digitalize meter and gauge reading and monitoring, as well as part number identification, with the ability to turn analog information

into digital data

Transportation:

Enhance safety and security for operations including loading and unloading tanker trucks, protecting both personnel and products/equipment.

Ensure correct item identification and organization, providing increased accuracy for retail checkout and product categorization,

ultimately impacting revenue streams.

is sold as a license per device with a monthly subscription requirement for cloud access to trained AI models.

is a system that enables users to use pre-existing IP cameras and apply AI analytics without the need for large servers or a dedicated

IT department.

Designed to be plug-and-play IvedaXpress provides a hassle free set up process with no maintenance required for hardware.

Each IP camera is hosted from a local computer or smartphone for live viewing and playback.

Video may be stored on that local computer

or stored remotely using free storage from Amazon or Dropbox.

Smart UVC is a Commercial-grade, AI-driven Ultraviolet Germicidal Irradiation (UVGI).

Iveda Smart UVC adds UV lights to standard

HVAC vents for quick, easy, and inexpensive deployment to homes and commercial buildings.

Leveraging the existing air circulation system,

Iveda Smart UVC vents disinfect the air by irradiating UV light on the passing air.

Eliminating the need to manually disinfect offices,

meeting rooms, and other workspaces.

Iveda Smart UVC can be Integrated with Iveda SPS (smart power management) and sensors to efficiently

and effectively operate the light source upon detected movement.

Smart Drones are flown to perform certain functions from an aerial view without the need for a pilot onboard.

Smart Drones utilize

AI-based software for autonomous operation and navigation from taking off, returning to base, carrying out mission-critical tasks or

simply doing an aerial patrol, without the need of human intervention.

Unlike typical drones, Iveda Smart Drones are cloud-based and

can be part of a network of drones for central management.

They are equipped with Iveda’s Sentir Video Surveillance System and

IvedaAI Intelligent Video Search Technology.

Smart Drone product offering is robust and expansive for a multitude of industrial, commercial, and military applications.

Features of Iveda’s Smart Drone:

autonomous take-off, flight mission execution, monitoring, landing and recharging

operation and 24-7 flight mission

video streaming - real-time object recognition and tracking

(edged) AI and data analysis

redundant and fail-safe systems

resistant industrial grade systems (IP54)

and made in Taiwan (MIT)

and editing real-time/timed missions

permission control & flight data management

alarm and FPV gimbal control

orthorectified service of imagery (2D/3D)

technology for inspecting natural disaster, vehicle & pedestrian tracking, and energy facilities inspection.

geographic data and analysis report

8 (multiply redundant)

29.76″ / 756 mm

14.1lbs / 6.4 Kg

Beaufort scale – 6

Dual RGB, IR/thermal

5G/4G LTE and 2.4G Wi-Fi

Smart Utility Cabinet gives end users a convenient tool to monitor their daily energy consumption, to pinpoint electrical leaks,

and to prevent power line overload and potential fire.

It utilizes IoT sensors to detect abnormalities in consumption, temperature and

Iveda Smart Utility Cabinet has an internal environment control design, housed in a durable industrial-grade cabinet.

a smart edge computing gateway with multi-RF communication protocols such as 4G, Z-Wave and WiFi and tampering sensor for unauthorized

Smart water meter and gas meter may be added to the Cabinet.

Body Camera streams live video, using 4G, to headquarters and doubles as a walkie talkie with a push-to-talk feature.

With its multi-mode

audio, it can also be used for broadcasting and hands-free audio conferencing for group talk.

Vemo has WiFi capability which is ideal

for city-wide deployments.

Vemo transmits live streaming video instantaneously to the cloud without additional software or hardware.

Vemo’s cloud management platform can centrally manage an unlimited number of devices and video can be accessed on a PC, Android

and iOS client.

Moreover, Vemo can stream directly into the IvedaAI platform for real-time video analytics to search for faces, objects

or license plates in real time.

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 that is 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.

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.

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 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 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.

We now have the capability

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

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

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

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.

50 % of the total accounts receivable at December

31, 2023 was from one customer out of a total of 24 customer accounts receivable accounts.

This specific customer was Chunghwa Telecom.

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 Co Ltd.

These customers are longtime customers, and we don’t expect any problem

with collectability of these accounts receivable.

from two customers out of 65 total customers represented approximately 48 % of total revenue for the year ended December 31, 2023.

specific customers were 1) We had $9 48,592 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 .

specific customers were 1) YOU MING HUEI CO.

LTD with 25 %, 2) Chicony Power Technology Co Ltd with 23 %, (both Taiwan companies).

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) Chunghwa Telecom with 21 %, 2) Chicony Power Technology Co Ltd with 31 %, (both Taiwan companies).

other customers represented greater than 10 % of total revenues in years ended December 31, 2023 and 2022.

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new relevant accounting standards

2 RELATED PARTIES

OF RELATED PARTY TRANSACTIONS

December 31, 2022

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

Debt Discount

Total Long-Term

2 RELATED PARTIES - None

3 SHORT-TERM AND LONG-TERM DEBT

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December 31, 2022

Debenture agreements with a shareholder at 10 % interest rate beginning August 2019, one year maturity, was due August 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 of $ 17,079 was repaid in December 2022.

Loan from Shanghai Bank at 1%-3.06% interest rate per annum.

Due in January 2024 and July 2024.

Loan from Shanghai Bank at 1 %- 3.06 % interest rate per annum.

Due in January 2024 and July 2024 .

Loan from HuaNam Bank at 3.44 % interest rate per annum.

Due in May 2024.

Loan from ChangHwa Bank at 3 % interest rate per annum.

Due in November 2024.

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

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OF LONG-TERM DEBT

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

Portion of Long-term debt

at end of period

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

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

Current Portion of Long-term debt

Balance at end of period

4 PREFERRED STOCK

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$ 0.72 - $ 2.53

$ 1.12 - $ 3.92

with respect to warrants outstanding and exercisable at December 31, 2023 is as follows:

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valuation allowance increased approximately $ 1.0 million, primarily as a result of the increased net operating losses of our U.S.- based

of December 31, 2022, we had federal net operating loss carryforwards for income tax purposes of approximately $ 32 million which

will begin to expire in 2025 .

Arizona net operating loss carryforwards for income tax purposes of approximately $ 2.0

million which expire after five years.

These carryforwards have been utilized in the determination of the deferred income taxes

for financial statement purposes.

of December 31, 2023, we had federal net operating loss carryforwards for income tax purposes of approximately $ 35 million which will

begin to expire in 2025.

We also have Arizona net operating loss carryforwards for income tax purposes of approximately $ 2.0 million

which expire after five years.

These carryforwards have been utilized in the determination of the deferred income taxes for financial

statement purposes.

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

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31, 2023 and 2022.

If we did not have net losses in 2022 and 2021

we would have had an additional amount of dilutive securities convertible at less than the then fair market value of the common stock.

we did not have net losses in 2023 and 2022 we would have had an additional amount of dilutive securities convertible at less than the

then fair market value of the common stock.

These amounts would have been 90,000 and 90,000 , respectively.

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9 CONTINGENT LIABILITIES—TAIWAN

to certain contracts with Chicony Power Technology Co., Ltd., Siemens, and 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 December 31, 2022 is $ 296,536 .

to certain contracts with Chicony Power Technology Co., Ltd., Siemens, Shihlin Electric & Engineering Corporation, and 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 December 31, 2023 is $ 320,237 .

10 SUBSEQUENT EVENTS

2023 warrant holders have exercised 945,900 warrants at $ 1.40 per share for gross proceeds of $ 1,324,260 .

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-K

Item 9A. Controls and Procedures