What changed in this filing

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Item 1. Financial Statements

2024-08-14 compared with 2024-05-20 · 436 added, 314 removed, 749 unchanged (50% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

31, 2024 AND DECEMBER 31, 2023

March 31, 2024

December 31, 2023

CURRENT ASSETS

12 unchanged sentences

Total Current Liabilities

Long-term Debt

Total Liabilities

STOCKHOLDERS’ EQUITY

Preferred Stock, $ 0.00001 par value;

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 March 31, 2024 and December 31, 2023, respectively

Preferred Stock, value

Common Stock, $ 0.00001 par value;

37,500,000 shares authorized;

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

Preferred Stock, $ 0.00001

12,500,000 shares

authorized, no preferred shares

issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

Common Stock, $ 0.00001

37,500,000 shares

16,269,891 and 16,169,891

shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

Additional Paid-In Capital

4 unchanged sentences

( 47,941,795 )

Total Stockholders’ Equity (Deficit)

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

2 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

March 31, 2024

March 31, 2023

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Equipment Sales

7 unchanged sentences

( 1,675,173 )

( 1,371,208 )

OTHER INCOME (EXPENSE)

5 unchanged sentences

( 1,590,880 )

( 1,349,012 )

BENEFIT (PROVISION) FOR INCOME TAXES

$ ( 504,774 )

$ ( 817,339 )

$ ( 1,623,475 )

$ ( 1,367,602 )

Net Loss attributable to the Non-Controlling Interest

2 unchanged sentences

$ ( 757,372 )

$ ( 1,602,476 )

$ ( 1,307,635 )

BASIC AND DILUTED LOSS PER SHARE

1 unchanged sentence

accompanying Notes to Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS

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

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF

COMPREHENSIVE

LOSS (Unaudited)

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Net Loss Attributable to Iveda Solutions, Inc.

1 unchanged sentence

$ ( 757,372 )

$ ( 1,602,476 )

$ ( 1,307,635 )

Other Comprehensive Loss

Change in Equity Adjustment from Foreign

Currency Translation, Net of Tax

Comprehensive

Change in Equity Adjustment from Foreign Currency Translation,

Comprehensive Loss

$ ( 514,836 )

$ ( 778,422 )

See accompanying Notes to Condensed Consolidated Financial Statements .

( 1,657,832 )

( 1,329,359 )

accompanying Notes to Condensed Consolidated Financial Statements .

SOLUTIONS, INC.

1 unchanged sentence

Paid-in-Capital

Non-Controlling Interest

Non-Controlling

Comprehensive

Income (loss)

Stockholders’

7 unchanged sentences

$ ( 45,256,934 )

BALANCE AT December 31, 2023

$ ( 221,317 )

Common Stock for Services

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2023 (UNAUDITED)

$ ( 46,014,306 )

$ ( 242,367 )

BALANCE AT December 31, 2023

$ ( 47,941,795 )

$ ( 222,380 )

Cost of Financing

8 unchanged sentences

$ ( 49,049,994 )

$ ( 109,860 )

$ ( 257,178 )

Common Stock for Services

Stock Option Compensation

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2024 (UNAUDITED)

$ ( 49,544,271 )

$ ( 119,670 )

$ ( 277,736 )

$ ( 49,544,271 )

$ ( 119,670 )

$ ( 277,736 )

accompanying Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDING MARCH 31, 2024 AND 2023

March 31, 2024

March 31, 2023

THE SIX MONTHS ENDING JUNE 30, 2024 AND 2023 (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

3 unchanged sentences

Depreciation and Amortization

Stock Compensation Expense

Common Stock for Services

Changes in operating assets and liabilities

8 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Changes in Restricted Cash

Proceeds from (Payments on) Short-Term Notes Payable/Debt

Proceeds from (Payments to) Due to Related Parties

(Payments on) Short-Term Notes Payable/Debt

Proceeds from (Payments to) Long-Term Debt

Payments for Deferred Finance Costs

Common Stock Issued, Net of (Cost of Capital)

1 unchanged sentence

EFFECT OF EXCHANGE RATE CHANGES ON CASH

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents- Beginning of Period

CASH AND CASH EQUIVALENTS - END OF PERIOD

NET INCREASE (DECREASE) IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS

( 1,901,284 )

Cash , Restricted Cash and Cash Equivalents- Beginning of Period

CASH, RESTRICTED CASH AND CASH EQUIVALENTS - END OF PERIOD

accompanying Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE THREE MONTHS ENDING MARCH 31, 2024 AND 2021

March 31, 2024

March 31, 2023

THE SIX MONTHS ENDING JUNE 30, 2024 AND 2023 (Unaudited)

June 30, 2024

June 30, 2023

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

79 unchanged sentences

Iveda leverages infrastructure already available in most modern cities – Light

poles with power We equip existing poles with Utilus.

poles with power.

We equip existing poles with Utilus.

Utilus consists of power and internet, establishing a communication network for

63 unchanged sentences

orthorectified service of imagery (2D/3D)

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

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

geographic data and analysis report

51 unchanged sentences

other from monthly licensing fees.

Iveda Taiwan,

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

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.

5 unchanged sentences

with a team of developers in Taiwan.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

5 unchanged sentences

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

We review the recoverability of the carrying

value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived

assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not

be recoverable.

Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset

to the undiscounted future net operating cash flows expected to be generated by the asset.

If such assets are considered to be impaired,

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

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

We review the

recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.”

We review our long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount

of an asset or asset group may not be recoverable.

Recoverability of long-lived assets to be held and used is measured by a comparison

of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset.

assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets

exceeds their fair value.

We did not record any impairment losses for the three and six months ended June 30, 2024 and 2023.

of Accounting Preparation

2 unchanged sentences

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.

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

Actual results could differ from these estimates.

9 unchanged sentences

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 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.

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 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).

For each 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 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

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.

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.

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

, when the Company’s performance obligations are 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 sells its products and services primarily to municipalities and commercial customers in the following manner:

11 unchanged sentences

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.

Provisions for estimated losses on uncompleted contracts are made

in the period in which such losses are determined.

Changes in job performance, job conditions, and estimated profitability may result

in revisions to costs and income and are recognized in the period in which the revisions are determined.

Changes in estimated job profitability

resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for

as changes in estimates in the current period.

General and administrative

costs are charged to expense as incurred.

Provisions for estimated losses on uncompleted contracts are made in the period in which such

losses are determined.

Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income

and are recognized in the period in which the revisions are determined.

Changes in estimated job profitability resulting from job performance,

job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the

current period.

Profit incentives are included in revenues when their realization is reasonably assured.

Claims are included in revenues when realization is probable and the amount can be reliably estimated.

Claims are included in revenues

when realization is probable and the amount can be reliably estimated.

majority of Iveda US hardware sales are to international customers and are made through independent distributors or integrators who

4 unchanged sentences

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.

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 includes licensing fees that are paid either monthly or yearly.

15 unchanged sentences

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

Insurance Corporation) with maximum coverage of NTD 3

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.

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

We perform periodic credit evaluations

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

of the total accounts receivable at June 30, 2024 was from two customers out of a total of 25 customer accounts receivable accounts.

The specific customers were Chunghwa Telecom ( 48 %)

and HWACOM Systems Inc.

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.

from three customers out of 70 total customers represented approximately 87 %

of total revenue for the three months ended June 30, 2024.

These specific customers were 1) HWACOM Systems Inc.

(Taiwan company) with

2) Chunghwa Telecom (Taiwan company) with 29 %,

and 3) Claro Enterprise Solutions with 19 %

(US Company).

Revenue from one customer out of 62 total customers represented approximately 68 %

of total revenue for the three months ended June 30, 2023.

The specific customer was YOU MING HUEI CO.

(Taiwan company).

from three customers out of 69 total customers represented approximately 78 %

of total revenue for the six months ended June 30, 2024.

These specific customers were 1) HWACOM Systems Inc.

(Taiwan company) with 33 %,

2) Chunghwa Telecom (Taiwan company) with 27 %,

and 3) Claro Enterprise Solutions with 18 %

(US Company).

Revenue from three customers out of 65 total customers represented approximately 63 %

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) YOU MING HUEI CO.

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

of total revenue for the six months ended June 30, 2023.

These specific customers were 1) YOU MING HUEI CO.

(Taiwan company) with

and 2) Chicony Power Technology Co., Ltd.

(Taiwan company) with 28 %.

other customers represented greater than 10 %

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

of total revenues in the three months and six months ended June 30, 2024 and three months and six months ended June 30, 2023.

and Cash Equivalents

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

months or less to be cash equivalents.

provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information,

and existing economic conditions.

For our U.S.-based segment, receivables past due more than 120 days are considered delinquent.

our Taiwan-based segment, receivables over one year are considered delinquent.

Delinquent receivables are written off based on individual

credit valuation and specific circumstances of the customer.

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.

consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

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.

All 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

Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered.

As of June 30,

2024 and December 31, 2023, respectively, an allowance for uncollectible accounts of $ 0 and

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

1 unchanged sentence

Current Assets

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

OF OTHER CURRENT ASSETS

Prepaid Expenses

Advances to Suppliers

Tender Deposits

Other Current Assets

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

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

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

as of June 30, 2024 and December 31, 2023, respectively.

and Equipment

1 unchanged sentence

Depreciation is computed primarily using the straight-line method over estimated useful lives of three

to seven years .

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

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.

Expenditures for routine maintenance and

repairs are charged to expense as incurred.

Depreciation expense for the three and six months ended June 30, 2024 were $ 7,906

and $ 15,806 ,

respectively.

Depreciation expense for the three and six months ended June 30, 2023 were $ 2,161

and $ 7,191 ,

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 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.

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 six months ended June 30, 2024 and six months ended June 30, 2023, we reevaluated the valuation allowance

for deferred tax assets and determined that no current benefits should be recognized for the six months ended June 30, 2024 and for the

six months ended June 30, 2023.

are subject to U.S.

9 unchanged sentences

OF ACCOUNTS AND OTHER PAYABLES

March 31, 2024

June 30, 2024

December 31, 2023

6 unchanged sentences

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

of an expense related to the fair value of stock-based compensation awards.

We elected the modified prospective transition method as

permitted by ASC 718.

Under this transition method, stock-based compensation expense includes compensation expense for stock-based compensation

granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC

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

value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2023 and 2022, were estimated using

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

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

We recognized 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.

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

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

in the Philippines.

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

owners’ share of each subsidiaries’ results of operations are deducted from net income or loss in the Condensed Consolidated

Statements of Operations.

record stock based compensation in accordance with the provisions of ASC 718.

We recognize stock-based compensation expense on a

straight-line basis over the requisite service period of the award.

The fair value of stock-based compensation awards granted prior

to, but not yet vested as of June 30, 2024 and 2023, were estimated using the “minimum value method” as prescribed by

original provisions of ASC 718, “Accounting for Stock-Based Compensation.” We recognized $ 25,600 and

$ 25,600 stock-based

compensation expense for the three and six months ended June 30, 2024 and no stock-

based compensation expense for three and six months ended June 30, 2023.

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 March 31,

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of June 30, 2024

and December 31, 2023.

1 unchanged sentence

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.

Fair 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.

4 unchanged sentences

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

Net Revenue for the three months ended March 31, 2024

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

Net Revenue for the six months ended June 30, 2024 (unaudited)

Net Revenue for the six months ended June 30, 2023 (unaudited)

United States

13 unchanged sentences

Accounting Standards

Financial Instruments - Credit Losses

Instruments - Credit Losses

Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326):

1 unchanged sentence

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.

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.

There 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.

14 unchanged sentences

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

1 unchanged sentence

OF SHORT-TERM DEBT

March 31, 2024

June 30, 2024

December 31, 2023

Loan from Shanghai Bank at 1%-3.2% 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 .

Due in January 2024 and January 2025.

Loan from Shanghai Bank at 1 %- 3.2 %

interest rate per annum.

in January 2024 and January 2025 .

Loan from HuaNam Bank at 3.4 %

interest rate per annum.

in May 2024 and December 2024 .

Loan from ChangHwa Bank at 3.3 %

interest rate per annum.

in November 2024 .

Balance at end of period

1 unchanged sentence

OF LONG-TERM DEBT

March 31, 2024

June 30, 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

Loans from Shanghai Bank with interest rates 2.09 %

per annum due January

Current Portion of Long-term debt

1 unchanged sentence

OF LONG TERM DEBT MATURITIES

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

Annual maturities of long-term debt during the next five years

are as follows:

Amount Maturity

July 1, 2024 – December 31, 2024

4 PREFERRED STOCK

are currently authorized to issue up to 12,500,000 shares of preferred stock, par value $ 0.00001 per share, 1,250,000 shares of which

are designated as Series A Preferred Stock and 500 shares of which are designated as Series B Preferred Stock.

Our Articles of Incorporation

authorize the issuance of shares of preferred stock with designations, rights, and preferences determined from time to time by our Board

of Directors.

Accordingly, our Board of Directors is empowered, without stockholder approval, to issue preferred stock with dividend,

liquidation, conversion, voting, or other rights which could adversely affect the voting power or other rights of the stockholders of

our common stock.

In the event of issuance, the preferred stock could be utilized, under certain circumstances, as a method of discouraging,

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

are currently authorized to issue up to 12,500,000

shares of preferred stock, par value $ 0.00001

per share, 1,250,000

shares of which are designated as Series A Preferred

Stock and 500

shares of which are designated as Series B Preferred

Our Articles of Incorporation authorize the issuance of shares of preferred stock with designations, rights, and preferences determined

from time to time by our Board of Directors.

Accordingly, our Board of Directors is empowered, without stockholder approval, to issue

preferred stock with dividend, liquidation, conversion, voting, or other rights which could adversely affect the voting power or other

rights of the stockholders of our common stock.

In the event of issuance, the preferred stock could be utilized, under certain circumstances,

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

5 COMMON STOCK

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.

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.

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

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

to purchase up to 125,000 shares of common stock to directors, officers, key employees, and service providers of our company.

the 2010 Option Plan was amended to increase the number of shares issuable under the 2010 Option Plan to 375,000 shares.

In 2012, 2010

Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 1,625,000 shares.

The shares issuable

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

333- 164691), June 24, 2011

to purchase up to 125,000

shares of common stock to directors, officers,

key employees, and service providers of our company.

In 2011, the 2010 Option Plan was amended to increase the number of shares issuable

under the 2010 Option Plan to 375,000

In 2012, 2010 Option Plan was again amended

to increase the number of shares issuable under the 2010 Option Plan to 1,625,000

The shares issuable pursuant to the 2010

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

333- 164691), June 24, 2011 (No.

and December 4, 2013 (No.

The 2010 Option Plan expired on January 18, 2020.

As of December 31, 2023 there

were 359,125 options outstanding under the 2010 Option Plan.

As of December 31, 2023 there were 359,125

options outstanding under the 2010 Option Plan.

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

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

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

As of December 31, 2023 there were 941,875 options outstanding

under the 2020 Option Plan.

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

October 7, 2022 (No.

shares authorized with similar terms and conditions

to the 2010 Option Plan.

As of December 31, 2023 there were 941,875

options outstanding under the 2020 Option Plan.

The shares issuable pursuant to the 2020 Option Plan are registered with the SEC under Form S-8 filed on October 7, 2022 (No.

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.

of June 30, 2024 and December 31, 2023, there were 1,175,500

and 1,301,000

options outstanding, respectively, under all

the option plans.

For the three and six months ended June 30, 2024 there were 12,000

and 12,000 options granted, respectively, and

and 137,500 options cancelled , respectively.

For the three and six months ended June 30, 2023 there were no options granted, respectively, and 8,125 and 9,375 options cancelled,

respectively.

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.

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

alternate terms are specified at grant.

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

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

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

The estimated fair value of options

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

At June 30, 2024 and December 31, 2023,

we had approximately $ 62,000

unrecognized stock-based compensation.

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

We had net losses for the three months ended March 31, 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

We had net losses for the three and six months ended June 30, 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

and six months ended June 30, 2024 and 2023.

OF EARNINGS PER SHARE BASIC AND DILUTED

June 30, 2024

June 30, 2023

Basic and Diluted EPS

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Basic and Diluted Loss Per Share

Basic and Diluted EPS

$ ( 1,602,476 )

$ ( 1,307,635 )

Weighted Average Shares

Basic and Diluted Loss Per Share

9 COMMITMENTS AND CONTINGENCIES

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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 .

Taiwan in the event of failure to provide after- project services in the future as of June 30, 2024 is $ 332,467 .

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

3 unchanged sentences

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.

are no such cases as of June 30, 2024.

10 SUBSEQUENT EVENTS

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that existed at the balance sheet date.

Based upon this review the Company

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

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

16 unchanged sentences

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 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

by these forward-looking statements.

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 by these forward-looking

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

New risks emerge from

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

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

in any forward-looking statements.

New risks emerge from time to time, and it is

not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which

any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking

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

126 unchanged sentences

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

of Operations for the Three Months Ended March 31, 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.

The decrease in total revenue in 2024 compared with the same

period in 2023 is attributable primarily to decreased equipment sales from Iveda Taiwan as a result of delivery timing related to long-term

of Operations for the Three Months Ended June 30, 2024 Compared with the Three Months Ended June 30, 2023

recorded net consolidated revenue of $1.53 million for the three months ended June 30, 2024, compared with $2.39 million for the three

months ended June 30, 2023, a decrease of ($0.86 million), or (36%).

For the three months ended June 30, 2024, our service revenue was

$0.89 million, or 6% of net revenue, and our equipment sales and installation revenue was $1.45 million, or 94% of net revenue.

three months ended June 30, 2023, our service revenue was $0.08 million, or 3% of consolidated net revenue, and our equipment sales and

installation revenue was $2.32 million, or 97% of net revenue.

The decrease in total revenue in 2024 compared with the same period in

2023 is attributable primarily to decreased equipment sales from Iveda Taiwan as a result of delivery timing related to long-term contracts.

cost of revenue was $1.03 million (67% of revenue;

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

gross margin of 33%) for the three months ended June 30, 2024, compared with $2.11

million (88% of revenue;

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.

gross margin of 12%) for the three months ended June 30, 2023, a decrease of ($1.07 million), or (51%).

decrease in cost of revenue was primarily driven by decreased 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,

attributed to the higher margin equipment and service revenue for new customers.

expenses were $1.02 million for the three months ended June 30, 2024, compared with $1.10 million for the three months ended June 30,

2023, a decrease of ($0.08) million, or (8%).

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

no significant investor relations campaigns in the US based operations during this period.

from Operations

from operations decreased to $0.51 million for the three months ended June 30, 2024, compared with $0.82 million for the three months

ended June 30, 2023, a decrease of $0.31 million, or 37%.

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

gross margins and reduction in operating expenses.

income (expense)-net was $10,666 of net other income for the three months ended June 30, 2024, compared with $2,798 of net other expense

for the three months ended June 30, 2023, an increase of $7,868 of other income, or 281%.

The majority of the other income for 2024 was

interest income from cash in the bank.

Non-Controlling

Interest of Joint Venture

Non-Controlling

Interest of the Philippines Joint Venture was $10,497 for the three months ended June 30, 2024 compared to $59,967 for the three

months ended June 30, 2023.

The reduction is attributed to less pre-revenue expenses in 2024 versus the initial travel and

presentation expenses of 2023 to various cities in the Philippines.

loss was $0.49 million for the three months ended June 30, 2024, compared with $0.76 million for the three months ended June 30, 2023.

The decrease of $0.27 million, or 35%, in net loss was primarily due to increased gross margins and reduction in operating expenses.

of Operations for the Six months Ended June 30, 2024 Compared with the Six months Ended June 30, 2023

recorded net consolidated revenue of $1.88 million for the six months ended June 30, 2024, compared with $4.60 million for the six months

ended June 30, 2023, a decrease of ($2.71 million), or (59%).

For the six months ended June 30, 2024, our service revenue was $0.21 million,

or 11% of net revenue, and our equipment sales and installation revenue was $1.67 million, or 89% of net revenue.

For the six months

ended June 30, 2023, our service revenue was $0.28 million, or 6% of consolidated net revenue, and our equipment sales and installation

revenue was $4.3 million, or 94% of net revenue.

The decrease in total revenue in 2024 compared with the same period in 2023 is attributable

primarily to decreased equipment sales from Iveda Taiwan as a result of delivery timing related to long-term contracts.

cost of revenue was $1.20 million (64% of revenue;

gross margin of 36%) for the six months ended June 30, 2024, compared with $3.83 million

(83% of revenue;

gross margin of 17%) for the six months ended June 30, 2023, a decrease of ($2.63 million), or (69%).

The 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 $2.36 million for the six months ended June 30, 2024, compared with $2.14 million for the six months ended June 30, 2023,

an increase of $0.22 million, or 10%.

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.

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 $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 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.

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.

from operations increased to $1.68 million for the six months ended June 30, 2024, compared with $1.37 million for the six months ended

June 30, 2023, an increase of $0.31 million, or 22%.

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

net revenues and increased investor relations costs.

income (expense)-net was $84,294 of net other income for the six months ended June 30, 2024, compared with $22,197 of net other expense

for the six months ended June 30, 2023, an increase of $62,097 of other income, or 280%.

The majority of the other income for 2024 was

interest income from cash in the bank.

Non-Controlling

Interest of Joint Venture

Non-Controlling

Interest of the Philippines Joint Venture was $20,999 for the six months ended June 30, 2024 compared to $59,967 for the six months ended

June 30, 2023.

The reduction is attributed less pre-revenue expenses in 2024 versus the initial travel and presentation expenses of 2023

to various cities in the Philippines.

loss was $1.60 million for the six months ended June 30, 2024, compared with $1.31 million for the six months ended June 30, 2023.

increase of $0.29 million, or 23%, in net loss was primarily due to decreased net revenues and increased investor relations costs.

and Capital Resources

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

of June 30, 2024, we had cash and cash equivalents of $2.9 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

our cash and cash equivalents for the six months ended June 30, 2024 is related to the operating losses during the six months ended June

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

cash used in operating activities during the six months ended June 30, 2024 was ($2.0) million compared to $0.79 million net cash

provided during the six months ended June 30, 2023.

Net cash used in operating activities for the six months ended June 30, 2024

consisted primarily of the net loss of ($1.6) 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

Other factors for the six months ended June 30, 2024 included ($0.55) million

cash used from the increase of inventory and other current assets and by the increase of ($0.81) million of accounts receivable.

cash provided by operating activities for the six months ended June 30, 2023 consisted primarily of the $0.98 million net collection

of accounts receivable offset by net loss of ($1.3) 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 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.

Other factors for the six months ended June 30, 2023 included $0.35

million cash provided by the decrease of inventory and other current assets and the increase of $0.76 million of accounts payable

and accrued expenses.

cash used in investing activities for the six months ended June 30, 2024 was $0.30 million consisting primarily of the development of

additional IvedaAI platforms.

Net cash used by investing activities during the six months ended June 30, 2023 was $0.44 million consisting

primarily of the development of additional IvedaAI platforms.

cash provided by financing activities for the six months ended June 30, 2024 was $0.52 million compared with $1.0 million provided

during the six months ended June 30, 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.

of the proceeds from bank loans in Taiwan for the six months ended June 30, 2024.

The cash provided for the six months ended June

30, 2023 is related primarily to the exercise of 945,900 warrants at $1.40 with net proceeds of $1.3 million offset by $0.35 million

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

have experienced significant operating losses since our inception.

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For our U.S.-based segment,

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.

we had no doubtful accounts receivable allowances for the six months ended June 30, 2024 and year ended December 31, 2023.

For our Taiwan-based

segment, we set up no doubtful accounts receivable allowances for the six months ended June 30, 2024 and year ended December 31, 2023.

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