What changed in this filing

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Item 1. Financial Statements

2024-05-20 compared with 2023-11-14 · 384 added, 404 removed, 679 unchanged (54% of the section changed)

SOLUTIONS, INC.

BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS

31, 2024 AND DECEMBER 31, 2023

September 30,

March 31, 2024

December 31, 2023

CURRENT ASSETS

6 unchanged sentences

Property and Equipment, Net

Total Other Assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

1 unchanged sentence

Accounts and Other Payables

Due to Related Parties

Short Term Debt

1 unchanged sentence

Total Current Liabilities

LONG-TERM DEBT

Total Liabilities

STOCKHOLDERS’ EQUITY

Preferred Stock, $ 0.00001 par value;

100,000,000 shares authorized

12,500,000 shares authorized, no preferred shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

Series B Preferred Stock, $ 0.00001 par value;

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

500 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

Preferred Stock, value

1 unchanged sentence

37,500,000 shares authorized;

16,069,891 and 15,066,739 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively

16,169,891 and 16,169,891 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively

Additional Paid-In Capital

Joint Venture Non-Controlled Portion

Accumulated Comprehensive Loss

Non-controlling Interest

Accumulated Other Comprehensive Loss

Accumulated Deficit

5 unchanged sentences

SOLUTIONS, INC.

STATEMENTS OF OPERATIONS

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

For the Three

September 30, 2023

For the Three

September 30, 2022

September 30, 2023

September 30, 2022

CONSOLIDATED STATEMENTS OF OPERATIONS

THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

March 31, 2024

March 31, 2023

Equipment Sales

Service Revenue

Other Revenue

TOTAL REVENUE

5 unchanged sentences

( 1,160,983 )

( 2,387,090 )

OTHER INCOME (EXPENSE)

3 unchanged sentences

Total Other Income (Expense)

Venture Non-Controlled Interest

LOSS BEFORE INCOME TAXES

( 1,087,356 )

( 2,395,333 )

BENEFIT (PROVISION) FOR INCOME TAXES

( 1,118,700 )

$ ( 666,633 )

Net Loss attributable to the Non-Controlling Interest

NET LOSS ATTRIBUTABLE TO IVEDA SOLUTIONS, INC.

$ ( 1,108,198 )

2 unchanged sentences

WEIGHTED AVERAGE SHARES

share amounts and per share amounts reflect a reverse stock split of the outstanding shares of our Common Stock at a ratio of 1-for-8

effected on March 31, 2022.

accompanying Notes to Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE LOSS THREE MONTHS ENDED MARCH 31, 2024 AND 2023

Net Loss Attributable to Iveda Solutions, Inc.

$ ( 1,108,198 )

$ ( 550,263 )

Other Comprehensive Loss

Change in Equity Adjustment from Foreign

Currency Translation, Net of Tax

Comprehensive

$ ( 1,142,996 )

$ ( 550,937 )

See accompanying Notes to Condensed Consolidated Financial Statements .

SOLUTIONS, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Paid-in-Capital

Non-Controlling Interest

Comprehensive

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Equity(Deficit)

BALANCE AT December 31, 2021 (AUDITED)

$ ( 41,361,401 )

$ ( 143,493 )

$ ( 777,279 )

Costs of Capital

( 1,613,470 )

( 1,163,918 )

Stock Based Compensation

Common Stock issued for conversion error

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

BALANCE AT December 31, 2022

$ ( 44,706,671 )

$ ( 220,643 )

Exercise of warrants issued August 2022

Comprehensive Loss

8 for 1 conversion adjustment

BALANCE AT March 31, 2023 (UNAUDITED)

$ ( 45,256,934

BALANCE AT December 31, 2023

3 unchanged sentences

$ ( 222,380 )

Exercise of warrants issued August 2022

Common Stock issued for services

Joint Venture Non-Controlled Interest

Cost of Financing

Non-controlling Interest

( 1,108,198 )

1 unchanged sentence

Comprehensive Loss

BALANCE AT September 30, 2023 (UNAUDITED)

BALANCE AT March 31, 2024 (UNAUDITED)

$ ( 49,049,994 )

2 unchanged sentences

$ ( 257,178 )

share amounts and per share amounts reflect a reverse stock split of the outstanding shares of our Common Stock at a ratio of 1-for-8

effected on March 31, 2022.

accompanying Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE NINE MONTHS ENDING SEPTEMBER 30, 2023 AND 2022

September 30,

THE THREE MONTHS ENDING MARCH 31, 2024 AND 2023

March 31, 2024

March 31, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

1 unchanged sentence

$ ( 550,263 )

Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities

Adjustments to Reconcile Net Loss to Net Cash Provided By (Used in) Operating Activities

Depreciation and Amortization

Interest Value of Convertible Debt Issued

Stock Option Compensation

Common Stock Issued for Services

Common Stock Warrants Issued for Services

(Increase) Decrease in Operating Assets

Changes in operating assets and liabilities

Accounts Receivable

1 unchanged sentence

Increase (Decrease) in Accounts and Other Payables

Net Cash Used in Operating Activities

( 1,865,342 )

Net Cash Provided By (Used in) Operating Activities

( 1,112,075 )

1 unchanged sentence

Purchase of Property and Equipment

Net Cash Provided by (Used in) Investing Activities

Net Cash Used in Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES

3 unchanged sentences

Proceeds from (Payments to) Long-Term Debt

Philippines Joint Venture Non-Controlled portion

Payments for Deferred Finance Costs

3 unchanged sentences

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

( 1,747,021 )

Cash and Cash Equivalents- Beginning of Period

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE NINE MONTHS ENDING SEPTEMBER 30, 2023 AND 2022

September 30,

THE THREE MONTHS ENDING MARCH 31, 2024 AND 2021

March 31, 2024

March 31, 2023

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

1 unchanged sentence

Income Tax Paid

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Common Stock issued for services

Warrants issued for services

accompanying Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

TO THE (UNAUDITED) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1 NATURE OF OPERATIONS

of Operations

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

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.

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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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.

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

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

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Our smart devices

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

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

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

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for monitoring and control purposes.

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

This line of products includes smart power, water meter, smart lighting controls systems, and smart

payment system.

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.

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

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.

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.

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video surveillance systems, and smart power.

Utilus 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 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 consumption.

smart pole offering is also ideal for:

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 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

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and Maintenance Exams:

vumastAR has the power to assist with critical measuring of carcinogenic

chemical compound levels, electrical wiring, and welding inspections.

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.

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

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.

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.

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and effectively operate the light source upon detected movement.

Smart Drone is a cloud-based Unmanned Aerial Vehicle drone equipped with Iveda’s Sentir Video Surveillance System and IvedaAI Intelligent

Video Search Technology.

Autonomous - Scheduled autonomous take-off, flight mission execution, monitoring, landing

and recharging

● Intelligent

Computing - Live video streaming, real-time object recognition and tracking

Design- Weather resistant industrial grade systems

Helicopter Drone , gasoline-powered multi-purpose Helicopter Drone is a highly advanced aircraft known for its long

flight time, impressive payload capacity, and exceptional performance.

Engineered with three half-symmetrical blades and a strong carbon

structure, it ensures optimal efficiency.

Our company’s 100cc 4-stroke gasoline engine powers this helicopter.

With a spacious

area between the skids and body, users can easily mount various payloads, while the integration of a fully automatic flight control system

enhances its agility and functionality.

Offering extended flight duration is a versatile and reliable choice for diverse applications.

Features of Our Helicopter Control System:

via Ground Station or Remote Control

● Pre-Planned

Flight Routes, Including Takeoff, Landing, and Autonomous Navigation

● Instantaneous

Display of Flight Information

● Comprehensive

Flight Data Recording and Playback

Ground Station Interface with Joystick Control

Station for Adjustable Gimbal Angle and Direction

Landing Functionality for Added Safety

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,

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other from monthly licensing fees.

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.

MEGAsys combines security surveillance

Iveda Taiwan combines security surveillance

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

3 unchanged sentences

with a team of developers in Taiwan.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING

Consolidation

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of Long-Lived Assets

have a significant amount of property and equipment, consisting primarily of leased equipment.

have a significant amount of property and equipment, consisting primarily of Cerebro, our software technology platform.

We review the recoverability of the carrying

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not make any impairment for the years ended December 31, 2023 and 2022.

of Accounting

of Accounting Preparation

consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally

accepted in the United States of America.

preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires

us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

Actual results

could differ from these estimates.

preparation of Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United

States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and

accompanying notes.

Actual results could differ from these estimates.

and Expense Recognition

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revenue when a performance obligation is satisfied.

Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the

In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company

holds a contract bearing enforceable rights and obligations only with the distributor.

As part of its consideration for the contract,

the Company evaluates certain factors including the customers’ ability to pay (or credit risk).

For each contract, the Company

considers the promise to transfer products, each of which is distinct, to be the identified performance obligations.

In determining the

transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which

it expects to be entitled.

As the Company’s standard payment terms are less than one year, it has elected the practical expedient

under ASC 606-10-32-18 to not assess whether a contract has a significant financing component.

The Company allocates the transaction

price to each distinct product based on its relative standalone selling price.

The product price as specified on the purchase order is

considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar

circumstances.

Revenue is recognized when control of the product is transferred to the customer ( i.e.

, when the Company’s

performance obligations is satisfied), which typically occurs at shipment.

Further in determining whether control has been transferred,

the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred

to the customer.

Customers do not have a right to return the product other than for warranty reasons for which they would only receive

repair services or replacement product.

The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions

for product sales when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less

than one year.

Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with

the customer.

In situations where sales are to a distributor, the Company has concluded its contracts are with the distributor as

the Company holds a contract bearing enforceable rights and obligations only with the distributor.

As part of its consideration for

the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk).

contract, the Company considers the promise to transfer products or completion of contracted scope of service, each of which is distinct, to be the identified performance

In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to

determine the net consideration to which it expects to be entitled.

As the Company’s standard payment terms are less than one

year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing

The Company allocates the transaction price to each distinct product based on its relative standalone selling price.

product price as specified on the purchase order is considered the standalone selling price as it is an observable input which

depicts the price as if sold to a similar customer in similar circumstances.

Revenue is recognized when control of the product is

transferred to the customer ( i.e.

, when the Company’s performance obligations are satisfied), which typically occurs at

Further in determining whether control has been transferred, the Company considers if there is a present right to payment

and legal title, along with risks and rewards of ownership having transferred to the customer.

Customers do not have a right to

return the product other than for warranty reasons for which they would only receive repair services or replacement product.

Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions for product sales when incurred as the

amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Company sells its products and services primarily to municipalities and commercial customers in the following manner:

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in estimating costs and revenues, it is at least reasonably possible that the estimates used will change.

costs include all direct material, subcontractors, labor costs, and equipment costs and those indirect costs related to contract performance.

costs include all direct material, subcontractors, labor costs, and equipment costs related to contract performance.

General and administrative costs are charged to expense as incurred.

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The distributor or integrator

generally maintains product inventory or product is drop shipped from the manufacturer, customer receivables and all related risks

and rewards of ownership.

generally maintains product inventory or product is drop shipped from the manufacturer.

Accordingly, upon application of steps one through five above, revenue is recorded when the product is

shipped to the distributor or as directed by the distributor consistent with the terms of the distribution agreement.

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

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

The revenues are recorded monthly, if

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

We perform periodic credit evaluations

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, 2022.

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

We perform periodic credit

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

85 % of the total accounts

receivable at March 31, 2024 was from one customer out of a total of 25 customer accounts receivable accounts.

This specific

customer was Chunghwa Telecom.

of the total accounts receivable at December 31, 2023 was from one customer out of a total of 24 customer accounts receivable

This specific customer was Chunghwa Telecom.

Revenue from three customers out of 69 total customers represented approximately

50 % of total revenue for the three months ended March 31, 2024.

These specific customers were 1) Chunghwa Telecom (Taiwan company) with

19 % , 2) Claro Enterprise Solutions with 17 % (US Company) and 3) Security Integration & Consultant Technology CO., LTD with 14 % (Taiwan

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 $ 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.

specific customers were 1) YOU MING HUEI CO.

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

other customers represented greater than 10 %

of total revenues in the year ended December 31, 2023.

and Cash Equivalents

purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three

We consider all highly liquid debt instruments purchased with an original maturity of three

months or less to be cash equivalents.

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credit valuation and specific circumstances of the customer.

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.

As of March 31, 2024 and December 31, 2023, respectively, an allowance for

uncollectible accounts of $ 0 and $ 0 was deemed necessary for our consolidated Accounts Receivable.

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 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

do not manufacture product hence all of our inventory is finished goods to be sold or used in installation process.

We review our

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

future demand, market conditions, and alternative uses for possible excess or obsolete parts.

The allowance for slow-moving and obsolete

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

The allowance for slow-moving and

obsolete inventory is $ 0

and $ 0 , as of

March 31, 2024 and December 31, 2023, respectively.

and Equipment

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

Depreciation expense for the years

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

Deposits—Long-Term

deposits consist of a deposit related to the leases of Iveda Taiwan’ office space, and tender deposits placed with local governments

and major customers in Taiwan as part of the bidding process, which are anticipated to be held more than one year if the bid is accepted.

Depreciation expense for the three

months ended March 31, 2024 and 2023 were $ 7,900 and $ 5,030 , respectively.

assets consist of long-term deposits related to the leases of Iveda Taiwan’

office space, and tender deposits placed with local governments and major customers in Taiwan as part of the bidding process, which

are anticipated to be held more than one year if the bid is accepted.

income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between

the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates.

differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses.

Valuation allowances are established

when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax assets that, more likely

than not, will be realized.

Income tax expense is the tax payable for the year and the change during the year in deferred tax assets

and liabilities.

During 2022, 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.

the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates.

Temporary differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses.

Valuation allowances

are established when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax

assets that, more likely than not, will be realized.

Income tax expense is the tax payable for the year and the change during the

year in deferred tax assets and liabilities.

During the three months ended March 31, 2024 and the year ended December 31, 2023, we

reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the

three months ended March 31, 2024 and for the year ended December 31, 2023.

are subject to U.S.

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OF ACCOUNTS AND OTHER PAYABLES

September 30, 2023

March 31, 2024

December 31, 2023

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

Non-Controlling

Non-controlling

interests in the Company’s Condensed Consolidated Financial Statements represent the interest in subsidiaries held by our

venture partners.

The venture partners hold a 60% noncontrolling interest in the Company’s consolidated subsidiary Iveda

located in the Philippines.

Since the Company consolidates the financial statements of all wholly-owned and controlled

subsidiaries, the noncontrolling owners’ share of each subsidiary’s results of operations are deducted and reported as

net income or loss attributable to noncontrolling interest in the Condensed Consolidated Statements of Operations.

January 1, 2006, we adopted the fair value recognition provisions of ASC 718, “Share-Based Payment,” which requires the recognition

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

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

nine months ended September 30, 2023.

We recognized no stock-based compensation

expense for the three months ended March 31, 2024 and 2023, respectively.

Cost of Financing consists of legal and accounting charges related to finance

offerings as an offset to additional paid in capital.

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,

2024 and December 31, 2023.

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

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

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, accounts payable, accrued expenses, and bank loans.

values were assumed to approximate carrying values for these financial instruments because they are short-term in nature 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, 2023

Net Assets (Liabilities)

Net Revenue for the three months ended March 31, 2024

Net Revenue for the three months ended March 31, 2023 (unaudited)

United States

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Accounting Standards

new relevant accounting standards

2 RELATED PARTIES DEBT - NONE

Financial Instruments - Credit Losses

Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic

Measurement of Credit losses on financial instruments later codified as Accounting Standard codification (“ASC

326”), effective January 1, 2023, using a modified retrospective approach.

The guidance introduces a revised approach to the

recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses.

was no significant impact on the date of adoption of ASC 326.

ASC 326, Accounts receivable is recorded at the invoiced amount, net of allowance for expected credit losses.

The Company’s primary

allowance for credit losses is the allowance for doubtful accounts.

The allowance for doubtful accounts reduces the Account receivable

balance to the estimated net realizable value.

The Company regularly reviews the adequacy of the allowance for credit losses based on

a combination of factors.

In establishing any required allowance, management considers historical losses adjusted for current market

conditions, the Company’s customers financial condition, the amount of any receivables in dispute, the current receivables aging,

current payment terms and expectations of forward-looking loss estimates.

provisions for the allowance for doubtful accounts are included as a component of general and administrative expenses on the accompanying

condensed consolidated statements of operations and comprehensive loss.

Accounts receivable deemed uncollectable are charged against

the allowance for credit losses when identified.

Subsequent recoveries of amounts previously written off are credited to earnings in

the period recovered.

allowance for doubtful accounts related to Unicorns non-cash receivables is subject to uncertainty because the fair value of the underlying

private company options, warrants or shares could change subsequent to the initial determination of fair value and before receipt of

the related option, warrant or share certificates.

In addition, unforeseen circumstances could arise after contract inception which could

impact the customer’s intent or ability to pay.

Because the value of any one of the receivables associated with Unicorn’s

contracts may be material, changes such as these could have a material effect on the Company’s future financial condition, results

of operations and cash flows.

3 SHORT-TERM AND LONG-TERM DEBT

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OF SHORT-TERM DEBT

September 30,

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 .

March 31, 2024

December 31, 2023

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 .

Repaid January and March 2023

Balance at end of period

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OF LONG-TERM DEBT

September 30,

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

March 31, 2024

December 31, 2023

Loans from Shanghai Bank with interest rates 2.09% per annum due January 2029

Loans from Shanghai Bank with interest rates 2.09 % per annum due January 2029

Current Portion of Long-term debt

Balance at end of period

OF LONG TERM DEBT MATURITIES

maturities of long-term debt during the next five years are as follows:

4 PREFERRED STOCK

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delaying, or preventing a change in control of our company.

are authorized to issue up to 37,500,000 shares of common stock, par value $ 0.00001 per share.

All outstanding shares of our common stock

are of the same class and have equal rights and attributes.

The holders of our common stock are entitled to one vote per share on all

matters submitted to a vote of the stockholders of our company.

Our common stock does not have cumulative voting rights.

hold a majority of the outstanding shares of our common stock entitled to vote on the election of directors can elect all of the directors

who are eligible for election.

Holders of our common stock are entitled to share equally in dividends, if any, as may be declared from

time to time by our Board of Directors.

In the event of liquidation, dissolution, or winding up of our company, subject to the preferential

liquidation rights of any series of preferred stock that we may from time to time designate, the holders of our common stock are entitled

to share ratably in all of our assets remaining after payment of all liabilities and preferential liquidation rights.

Holders of our

common stock have no conversion, exchange, sinking fund, redemption, or appraisal rights (other than such as may be determined by the

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

are authorized to issue up to 37,500,000

shares of common stock, par value $ 0.00001

All outstanding shares of our common stock are of the same class and have equal rights and attributes.

The holders of our

common stock are entitled to one vote per share on all matters submitted to a vote of the stockholders of our company.

stock does not have cumulative voting rights.

Persons who hold a majority of the outstanding shares of our common stock are entitled

to vote on the election of directors can elect all of the directors who are eligible for election.

Holders of our common stock are

entitled to share equally in dividends, if any, as may be declared from time to time by our Board of Directors.

In the event of

liquidation, dissolution, or winding up of our company, subject to the preferential liquidation rights of any series of preferred

stock that we may from time to time designate, the holders of our common stock are entitled to share ratably in all of our assets

remaining after payment of all liabilities and preferential liquidation rights.

Holders of our common stock have no conversion,

exchange, sinking fund, redemption, or appraisal rights (other than such as may be determined by the Board of Directors in its sole

discretion) and have no preemptive rights to subscribe for any of our securities.

6 STOCK OPTION PLAN AND WARRANTS

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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

The shares issuable pursuant to the 2020 Option Plan are registered with the SEC under Form 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 nine months ended September 30, 2023 there were 2,500 options granted and 10,625 options cancelled.

333- 267792).

of March 31, 2024 and December 31, 2023, there were 1,299,750 and 1,301,000 options outstanding, respectively, under all the option plans.

For the three months ended March 31, 2024 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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have also granted non-qualified stock options to employees and contractors.

All non-qualified options are generally issued with an exercise

price no less than the fair value of the common stock on the date of the grant as determined by our Board of Directors.

Options may be

exercised up to ten years following the date of the grant, with vesting schedules determined by us upon grant.

Vesting schedules vary

by grant, with some fully vesting immediately upon grant to others that ratably vest over a period of time up to four years.

vested options may be exercised up to three months following date of termination of the relationship unless alternate terms are specified

All non-qualified options are generally issued with an

exercise price no less than the fair value of the common stock on the date of the grant as determined by our Board of Directors.

Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by us upon grant.

Vesting schedules vary by grant, with some fully vesting immediately upon grant to others that ratably vest over a period of time up

to four years.

Standard vested options may be exercised up to three months following date of termination of the relationship unless

alternate terms are specified at grant.

The fair values of options are determined using the Black-Scholes option-pricing model.

The estimated fair value of options

is recognized as expense on the straight-line basis over the options’ vesting periods.

At December 31, 2022, we had approximately

estimated fair value of options is recognized as expense on the straight-line basis over the options’ vesting periods.

March 31, 2024 and December 31, 2023, we had approximately $ 62,000

unrecognized stock-based compensation.

7 INCOME TAXES

Federal Corporate Income Tax

differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss

carryforward that create deferred tax assets and liabilities are as follows:

OF DEFERRED TAX ASSETS AND LIABILITIES

Tax Operating Loss Carryforward - USA

Valuation Allowance - USA

( 10,800,000 )

( 9,800,000 )

Deferred Tax Assets,

valuation allowance increased approximately $ 0.5 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 $ 29 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.

OF OPERATING LOSS CARRYFORWARDS

Net Operating

(Republic of China) Corporate Tax

Technologies, Inc.

is a subsidiary of the Company which is operating in Taiwan as a profit-seeking enterprise.

Its applicable corporate

income tax rate is 17%.

In addition, Taiwan’s corporate tax system allows the government to levy a 10% profit retention tax on

undistributed earnings for the prior year.

This tax will not be provided if the company distributed the earnings before the ended of

the fiscal year .

(dba Iveda Taiwan) is a subsidiary of the Company which is operating in Taiwan as a profit-seeking enterprise.

applicable corporate income tax rate is 17%.

In addition, Taiwan’s corporate tax system allows the government to levy a 10% profit

retention tax on undistributed earnings for the prior year.

This tax will not be provided if the company distributed the earnings before

the end of the fiscal year.

to the Taiwan corporate income tax (“TCIT”) reporting system, the TCIT sales cut-off base is concurrent with the business

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following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations,

as required by ASC No.

260, “Earnings per Share.”

as required by ASC 260, “Earnings per Share.”

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, 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 Nine months

ended September 30, 2023 and 2022.

OF EARNINGS PER SHARE BASIC AND DILUTED

September 30, 2023

September 30, 2022

We had net losses for the three months ended March 31, 2024 and 2023 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, 2024 and 2023.

SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED

March 31, 2024

Three months ended

March 31, 2023

Basic and Diluted EPS

$ ( 1,108,198 )

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Weighted Average Shares

Basic Loss Per Share

9 CONTINGENT LIABILITIES—TAIWAN

to certain contracts with Siemens, Chicony Power Technology, Shihlin Electric & Engineering Corporation and Chung-Hsin Electric &

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 September 30, 2023 is $ 304,854 .

Basic and Diluted Loss Per Share

9 COMMITMENTS AND CONTINGENCIES

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 March 31, 2024 is $ 360,857 .

the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business

that relate to a wide range of matters, such as government investigations and tax matters.

The Company recognizes a liability for such

contingency if it determines it is probable that a loss will be incurred and a reasonable estimate of the loss can be made.

may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter.

are no such cases as of March 31, 2024.

10 SUBSEQUENT EVENTS

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that existed at the balance sheet date.

Based upon this review, except as disclosed within the footnotes or as discussed below, the Company

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

Based upon this review the Company

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

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and associated notes

appearing elsewhere in this Form 10-Q Quarterly Report and with our audited consolidated financial statements for the year ended December

31, 2022 included in this Form 10-Q Quarterly Report.

appearing elsewhere in this Form 10-Q Quarterly Report.

Regarding Forward-Looking Information

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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

Report or discussed in our consolidated financial statements for the year ended December 31, 2023, which may cause our or our

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

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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.

dozens to thousands of cameras in less than one second.

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

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A description of our critical accounting policies and related

judgments and estimates that affect the preparation of our financial statements is set forth in our audited consolidated financial statements

judgments and estimates that affect the preparation of our financial statements is set forth in our consolidated financial statements

for the year ended December 31, 2023.

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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, 2023 Compared with the Three and Nine months Ended September 30, 2022

recorded net consolidated revenue of $0.87 million for the three months ended September 30, 2023, compared with $1.47 million for the

three months ended September 30, 2022, a decrease of ($0.59) million, or (41%).

For the three months ended September 30, 2023, our service

revenue was $0.09 million, or 10% of net revenue, and our equipment sales and installation revenue was $0.78 million, or 90% of net revenue.

For the three months ended September 30, 2022, our service revenue was $.10 million, or 7% of consolidated net revenue, and our equipment

of Operations for the Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

recorded net consolidated revenue of $0.35 million for the three months ended March 31, 2024, compared with $2.21 million for the three

months ended March 31, 2023, a decrease of ($1.78 million), or (84%).

For the three months ended March 31, 2024, our service revenue

was $0.12 million, or 35% of net revenue, and our equipment sales and installation revenue was $0.23 million, or 65% of net revenue.

For the three months ended March 31, 2023, our service revenue was $.0.20 million, or 9% of consolidated net revenue, and our equipment

sales and installation revenue was $2.0 million, or 91% of net revenue.

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period in 2023 is attributable primarily to decreased 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 $5.47 million for the nine months ended September 30, 2023, compared with $2.35 million for the

nine months ended September 30, 2022, an increase of $3.12 million, or 133%.

For the nine months ended September 30, 2023, our service

revenue was $0.36 million, or 7% of net revenue, and our equipment sales and installation revenue was $5.11 million, or 93% of net revenue.

In fiscal 2022, our service revenue was $0.21 million, or 9% of consolidated net revenue, and our equipment sales and installation revenue

was $2.14 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.

cost of revenue was $0.16 million (48% of revenue;

gross margin of 16%) for the three months ended September 30, 2023, compared with

$1.11 million (76% of revenue;

24% gross margin) for the three months ended September 30, 2022, a decrease of ($0.38 million), or (34%).

The decrease in cost of revenue was primarily driven by decreased 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 $4.56 million (83% of revenue;

gross margin of 17%) for the nine months ended September 30, 2023, compared with $1.67

gross margin of 52%) for the three months ended March 31, 2024, compared with $01.72

million (78% of revenue;

29% gross margin) for the nine months ended September 30, 2022, an increase of $2.89 million, or 174%.

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 $1.05 million for the three months ended September 30, 2023, compared with $1.03 million for the three months ended September

30, 2022, a decrease of ($0.02) million, or (2%).

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 September 30, 2023.

expenses were $3.19 million for the nine months ended September 30, 2023, compared with $3.07 million for the nine months ended September

gross margin of 22%) for the three months ended March 31, 2023, a decrease of ($1.55 million), or (90%).

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

The increase in overall gross margin was primarily

attributed to the higher margin service revenue.

expenses were $1.34 million for the three months ended March 31, 2024, compared with $1.04 million for the three months ended March 31,

2023, an increase of $0.31 million, or 29%.

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 nine months ended September 30, 2023.

This net increase in operating expenses in 2024 compared with 2023 is due primarily to a

ramp up in investor relations in the US based operations related to maintaining NASDAQ compliance.

from Operations

from operations increased to $0.9 million for the three months ended September 30, 2023, compared with $0.7 million for the three months

ended September 30, 2022, an increase of $0.2 million, or 34%.

from operations increased to $1.16 million for the three months ended March 31, 2024, compared with $0.55 million for the three months

ended March 31, 2023, an increase of $0.61 million, or 111%.

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

decreased net revenues and gross profit.

from operations decreased to $2.3 million for the nine months ended September 30, 2023, compared with $2.4 million for the nine months

ended September 30, 2022, a decrease of ($0.1) million, or (5%).

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

to increased net revenues and gross profits.

income (expense)-net was approximately $54,000 of net other income for the three months ended September 30, 2023, compared with $11,000

of net other income for the three months ended September 30, 2022, an increase of $44,000 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 $76,000 income for the nine months ended September 30, 2023, compared with ($8,000) expense for

the nine months ended September 30, 2022, a net increase of $84,000 other income.

The majority of the increase in other income for 2023

decreased net revenues and increased investor relations costs.

income (expense)-net was $73,628 of net other income for the three months ended March 31, 2024, compared with $19,398 of net other expense

for the three months ended March 31, 2023, an increase of $54,230 of other income, or 280%.

The majority of the other income for 2024

was interest income from cash in the bank.

Joint Venture (JV)

consolidate the financial statements of the JV and recorded approximately $24,000 of offset related to the non-controlled portion of

the JV loss for the three months ended September 30, 2023 and $83,000 nine months ended September 30, 2023.

loss was $0.83 million for the three months ended September 30, 2023, compared with $0.67 million for the three months ended September

The increase of $0.16 million, or 24%, in net loss was primarily the result of decreased net revenues in Iveda Taiwan.

loss was $2.1 million for the nine months ended September 30, 2023, compared with $2.4 million for the nine months ended September 30,

The decrease of $0.3 million, or 11%, in net loss was primarily the result of increased net revenues in Iveda Taiwan.

Non-Controlling Interest of Joint Venture

Non-Controlling Interest of the Philippines Joint Venture net loss was $10,502 for the three months ended March 31, 2024.

loss was $1.1 million for the three months ended March 31, 2024, compared with $0.55 million for the three months ended March 31,

The increase of $0.56 million, or 101%, in net loss was primarily due to decreased net revenues and increased investor

relations costs.

and Capital Resources

of September 30, 2023, we had cash and cash equivalents of $5.6 million compared to $7.3 million as of December 31, 2022.

This decrease

in our cash and cash equivalents for the nine months ended September 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 nine months ended September 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 used in operating activities during the nine months ended September 30, 2023 was ($1.9) million compared to ($3.3) million net cash

used during the nine months ended September 30, 2022.

Net cash provided by operating activities for the nine months ended September 30,

2023 consisted primarily of the $0.76 million increase of accounts receivable.

Net cash used in operating activities for the nine months

ended September 30, 2023 were primarily the ($2.1) million net loss and a decrease of ($0.38) million of accounts and other payables.

Net cash used in operating activities for the nine months ended September 30, 2022 consisted primarily of the ($2.4) million net loss

offset by $0.26 million of non-cash charges (primarily stock option compensation and stock for services) and an increase in inventory

of $0.37 million and a decrease by $0.81 million in additional accounts and other payables were the additional net cash used in operating

cash used in investing activities for the nine months ended September 30, 2023 was $0.64 million consisting primarily of the development

of March 31, 2024, we had cash and cash equivalents of $3.9 million compared to $4.8 million as of December 31, 2023.

This decrease in

our cash and cash equivalents for the three months ended March 31, 2024 is related to the operating losses during the three months

ended March 31, 2024.

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 three months ended March 31, 2024 was ($1.11) million compared to $0.17 million net cash

provided during the three months ended March 31, 2023.

Net cash used in operating activities for the three months ended March 31, 2024

consisted primarily of the net loss of ($1.11) million.

Other factors for the three months ended March 31, 2024 included ($0.30) million

cash used from the increase of inventory and other current assets offset by cash provided by decrease $0.07 million of accounts receivable.

Net cash provided by 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

million cash provided from the reduction of inventory and other current assets offset by cash used to decrease $0.33 million of accrued

cash used in investing activities for the three months ended March 31, 2024 was $0.19 million consisting primarily of the development

of additional IvedaAI platforms.

Net cash used by investing activities during the nine months ended September 30, 2022 was $5,184.

cash provided by financing activities for the nine months ended September 30, 2023 was $.84 million compared with $12.6 million provided

during the nine months ended September 30, 2022.

This increase in our cash and cash equivalents for the nine months ended September 30,

2023 is related primarily to the exercise of 945,900 warrants at $1.40 with net proceeds of $1.3 million offset by $0.46 million payments

against short and long term loans in Taiwan during the nine months ended September 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 and 5.0 million a result

of the proceeds from the stock offering that closed August 2022.

Net cash used by investing activities during the three months ended March 31, 2023 was $0.18 million

consisting primarily of the development of additional IvedaAI platforms.

cash provided by financing activities for the three months ended March 31, 2024 was $0.52 million compared with $1.07 million provided

during the three months ended March 31, 2023.

Net cash provided by financing activities in 2024 of $0.52 million is primarily a result

of the proceeds from bank loans in Taiwan for the three months ended March 31, 2024.

The cash provided 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.

have experienced significant operating losses since our inception.

At September 30, 2023, we had approximately $32 million in net operating

At December 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, 2023 and year ended December 31, 2022.

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

we had no doubtful accounts receivable allowances for the three months ended March 31, 2024 and year ended December 31, 2023.

Taiwan-based segment, we set up no doubtful accounts receivable allowances for the three months ended March 31, 2024 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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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