What changed in this filing

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Item 1. Financial Statements

2024-11-14 compared with 2024-08-14 · 436 added, 339 removed, 846 unchanged (48% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

September 30, 2024

December 31, 2023

CURRENT ASSETS

6 unchanged sentences

Property and Equipment, Net

Intangible Asset, Net

LIABILITIES AND STOCKHOLDERS’ EQUITY

2 unchanged sentences

Short Term Debt

Current Portion of Long-Term Debt

Current Maturities of Long-Term Debt

Total Current Liabilities

2 unchanged sentences

STOCKHOLDERS’ EQUITY

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

Preferred Stock, $ 0.00001 par value;

12,500,000 shares authorized, no preferred shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

Common Stock, $ 0.00001 par value;

4,687,500 shares authorized;

2,408,071 and 2,021,237 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

Additional Paid-In Capital

6 unchanged sentences

Total Liabilities and Stockholders’ Equity

accompanying Notes to Condensed Consolidated Financial Statements.

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

For the Three

September 30,

For the Three

September 30,

Equipment Sales

12 unchanged sentences

Interest Expense

Total Other Income (Expense)

Total Other Income (Expense), Net

LOSS BEFORE INCOME TAXES

14 unchanged sentences

WEIGHTED AVERAGE SHARES

accompanying Notes to Condensed Consolidated Financial Statements.

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

1 unchanged sentence

COMPREHENSIVE

LOSS (Unaudited)

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

For the Three

September 30,

For the Three

September 30,

Net Loss Attributable to Iveda Solutions, Inc.

4 unchanged sentences

Other Comprehensive Loss

Change in Equity Adjustment from Foreign Currency Translation,

Change in Equity Adjustment from Foreign Currency Translation, Net of Tax

Comprehensive Loss

3 unchanged sentences

( 2,190,672 )

accompanying Notes to Condensed Consolidated Financial Statements .

accompanying Notes to Unaudited Condensed Consolidated Financial Statements .

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Paid-in-Capital

Non-Controlling

Comprehensive

Stockholders’

Equity(Deficit)

BALANCE AT December 31, 2022

3 unchanged sentences

Comprehensive Loss

BALANCE AT March 31, 2023 (UNAUDITED)

BALANCE AT March 31, 2023

$ ( 45,256,934 )

3 unchanged sentences

Comprehensive Loss

BALANCE AT June 30, 2023 (UNAUDITED)

BALANCE AT June 30, 2023

$ ( 46,014,306 )

$ ( 242,367 )

Common Stock for Services

Non-controlling Interest

Comprehensive Loss

BALANCE AT September 30, 2023

$ ( 46,843,124 )

$ ( 274,862 )

BALANCE AT December 31, 2023

6 unchanged sentences

Comprehensive Loss

BALANCE AT March 31, 2024 (UNAUDITED)

BALANCE AT March 31, 2024

$ ( 49,049,993 )

1 unchanged sentence

$ ( 257,178 )

Common Stock for Services

Stock Option Compensation

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2024

$ ( 49,544,271 )

1 unchanged sentence

$ ( 277,736 )

Common Stock for Services

Stock Option Compensation

$ ( 49,544,271 )

$ ( 119,670 )

$ ( 277,736 )

Common Stock Issued in September Offering

Pre-Funded Warrants

Cost of Financing

Reverse Split fractional shares

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2024 (UNAUDITED)

BALANCE AT September 30, 2024

$ ( 50,099,282 )

4 unchanged sentences

$ ( 249,035 )

accompanying Notes to Condensed Consolidated Financial Statements

accompanying Notes to Unaudited Condensed Consolidated Financial Statements

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

THE NINE MONTHS ENDING SEPTEMBER 30, 2024 AND 2023 (UNAUDITED)

September 30, 2024

September 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

2 unchanged sentences

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

Depreciation and Amortization

Stock Compensation Expense

2 unchanged sentences

Accounts Receivable

( 1,872,233 )

Other Current Assets

Increase (Decrease) in Accounts and Other Payables

Net Cash Provided By (Used in) Operating Activities

Net Cash Used in Operating Activities

( 3,203,769 )

( 1,942,255 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Intangible Asset

Purchase of Property and Equipment

1 unchanged sentence

CASH FLOWS FROM FINANCING ACTIVITIES

(Payments on) Short-Term Notes Payable/Debt

Proceeds from (Payments to) Long-Term Debt

Common Stock Issued, Net of (Cost of Capital)

Payments on Short-Term Debt

Proceeds from (Payments on) Long-Term Debt

Common Stock Issued, Net of Cost of Financing

Net Cash Provided by Financing Activities

EFFECT OF EXCHANGE RATE CHANGES ON CASH

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

NET DECREASE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS

( 1,253,430 )

( 1,753,596 )

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.

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

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

June 30, 2024

June 30, 2023

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

THE NINE MONTHS ENDING SEPTEMBER 30, 2024 AND 2023 (UNAUDITED)

DISCLOSURE OF CASH FLOW INFORMATION

Interest Paid

Income Tax Paid

accompanying Notes to Condensed Consolidated Financial Statements.

DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Common Stock issued for services

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

210 unchanged sentences

been eliminated in consolidation.

We have non-controlling interests consolidated in the Company’s Unaudited 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 Phils, Inc.

located 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 Unaudited Condensed Consolidated Statements of Operations.

of Long-Lived Assets

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

have a significant amount of property and equipment, and an intangible asset consisting 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 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.

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.

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.

record any impairment losses for the three and nine months ended September 30, 2024 and 2023.

of Accounting Preparation

1 unchanged sentence

accepted in the United States of America.

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

preparation of Unaudited 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

61 unchanged sentences

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

purchase products from the Company at a wholesale price and sell to the end user (typically municipalities or a commercial customer)

at a retail price.

The distributor retains the margin as its compensation for its role in the transaction.

The distributor or integrator

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 hardware sales are made through independent distributors or integrators who purchase products from the Company at a wholesale

price and sell to the end user (typically municipalities or a commercial customer) at a retail price.

The distributor retains the

margin as its compensation for its role in the transaction.

The distributor or integrator 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 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

At times, amounts on deposit in Taiwan

may be in excess of the CDIC Insurance limit.

Insurance Corporation) with maximum coverage of NTD 3 million.

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

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.

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.

We perform periodic credit

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

of the total accounts receivable at September 30, 2024 was from three customers out of a total of 25 customer accounts receivable

The specific customers were Security Integration & Consultant Technology CO., LTD.

Chicony Power Technology Co., Ltd.

and Basecom Telecommunication Co., LTD ( 13 %).

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.

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.

from four customers out of 70 total customers represented approximately 88 % of total revenue for the three months ended September 30,

These specific customers were 1) Security Integration & Consultant Technology CO., LTD.

(Taiwan company) with 32 %, 2) Chicony

Power Technology Co., Ltd.

(Taiwan company) with 29 %, 3) Basecom Telecommunication Co., LTD.

with 14 % and 4) Claro Enterprise Solutions

with 13 % (US Company).

Revenue from two customers out of 62 total customers represented approximately 44 % of total revenue for the three

months ended September 30, 2023.

The specific customers were 1) Chicony Power Technology Co., Ltd.

(Taiwan company) with 26 % and 2) HWACOM

(Taiwan company) with 18 %.

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 %

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

from five customers out of 72 total customers represented approximately 76 % of total revenue for the nine months ended September 30,

These specific customers were 1) Security Integration & Consultant Technology CO., LTD.

(Taiwan company) with 19 %, 2) Chicony

Power Technology Co., Ltd.

(Taiwan company) with 16 %, 3) HWACOM Systems Inc.

(Taiwan company) with 15 %, 4) Claro Enterprise Solutions

with 14 % (US Company) and 5) Chunghwa Telecom (Taiwan company) with 13 %.

Revenue from two customers out of 65 total customers represented

approximately 57 % of total revenue for the nine months ended September 30, 2023.

These specific customers were 1) YOU MING HUEI CO.

(Taiwan company) with

and 2) Chicony Power Technology Co., Ltd.

(Taiwan company) with 30 % and 2) Chicony Power Technology Co., Ltd.

(Taiwan company) with 27 %

other customers represented greater than 10 %

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

other customers represented greater than 10 % of total revenues in the three months and nine months ended September 30, 2024 and three

months and nine months ended September 30, 2023.

and Cash Equivalents

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.

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

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

Unaudited 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.

As of September 30, 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

2 unchanged sentences

OF OTHER CURRENT ASSETS

September 30, 2024

December 31, 2023

Prepaid Expenses

2 unchanged sentences

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

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

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

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

September 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

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.

to seven years .

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

Depreciation expense for the three

and nine months ended September 30, 2024 were $ 8,000 and $ 23,806 , respectively.

Depreciation expense for the three and nine months ended

September 30, 2023 were $ 11,122 and $ 18,313 , respectively.

Asset – Cerebro Software Platform is our software technology platform contract developed during 2023 and 2024 and is expected to

be deployed at the beginning of 2025.

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 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.

Our intangible assets are stated

at cost and will be amortized using a straight-line method over estimated useful lives to be determined once it is deployed and put into service.

assets consist of long-term deposits related to the leases of Iveda Taiwan’ office space, and tender deposits placed with local

9 unchanged sentences

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.

During the nine months ended September 30, 2024 and nine months ended September 30, 2023, we reevaluated the valuation

allowance for deferred tax assets and determined that no current benefits should be recognized for the nine months ended September 30,

2024 and for the nine months ended September 30, 2023.

are subject to U.S.

9 unchanged sentences

OF ACCOUNTS AND OTHER PAYABLES

June 30, 2024

September 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

interests in the Company’s Unaudited 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.

1 unchanged sentence

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

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

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 September 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 $ 0 and $ 25,600 stock-based compensation expense for

the three and nine months ended September 30, 2024 and no stock- based compensation expense for three and nine months ended September

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 June 30, 2024

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

30, 2024 and December 31, 2023.

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

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

These financial instruments include cash, accounts receivable, accounts payable, accrued expenses, and bank loans.

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.

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.

1 unchanged sentence

similar to the business conducted and the customer bases located in the United States.

The net revenues and net assets (liabilities)

for other significant geographic regions are as follows:

The net revenues for other significant geographic regions are as follows:

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

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

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

September 30,

United States

32 unchanged sentences

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.

Unaudited Condensed consolidated statements of operations and comprehensive loss.

Accounts receivable deemed uncollectable are charged against

5 unchanged sentences

OF SHORT-TERM DEBT

June 30, 2024

December 31, 2023

September 30,

Loan from Shanghai Bank at 1%-3.2% interest rate per annum.

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 .

Loan from Shanghai Bank at 1 %- 3.2 % interest rate per annum.

Due in January 2024 and January 2025 .

Loan from HuaNam Bank at 3.4 % interest rate per annum.

Due in May 2024 and December 2024 .

Loan from ChangHwa Bank at 3.3 % interest rate per annum.

Due in November 2024 .

Balance at end of period

1 unchanged sentence

OF LONG-TERM DEBT

June 30, 2024

December 31, 2023

September 30,

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

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

Current Maturities of Long-term debt (classified under Current Liabilities)

Balance at end of period

OF LONG TERM DEBT MATURITIES

Annual 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

October 1, 2024 – December 31, 2024

4 RELATED PARTY TRANSACTIONS

expensed $ 5,000 and $ 30,000 consulting expense for the three and nine months ended September 30, 2024, respectively to one of our board

As of September 30, 2024, we had advances from a shareholder of Iveda Phil, Inc.

currently recorded in Accounts and Other Payables

of $ 17,723 .

5 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

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 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.

6 COMMON STOCK

1 unchanged sentence

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.

We effectuated a reverse stock split on September 17, 2024 of 1 for 8 shares of common stock.

All share values within

this report have been retroactively adjusted to the post reverse split values.

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.

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.

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.

7 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.

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.

to purchase up to 15,625 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 46,875 shares.

In 2012, 2010

Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 203,125 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

333-175143), 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 44,891 options outstanding under the 2010 Option Plan.

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

1 unchanged sentence

The 2020 Plan has a maximum of 156,250

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 117,735 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 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.

of September 30, 2024 and December 31, 2023, there were 146,202

options outstanding, respectively, under all the option plans.

For the three and nine months ended September 30, 2024 there were 0

options granted, respectively, and 782

options cancelled, respectively.

For the three and nine months ended September 30, 2023 there were no

options granted and 157

options were cancelled, respectively.

The weighted average fair value of options issued during 2024 was $ 2.88 and for those issued during 2023 was $ 2.72 .

with respect to stock options outstanding and exercisable at September 30, 2024 is as follows:

OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE EXERCISE PRICE RANGE

Options Outstanding

Options Exercisable

Outstanding at

September 30,

Exercisable at

September 30,

$ 2.56 - $ 142.08

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

Options Outstanding

Options Exercisable

Outstanding at

Exercisable at

$ 2.56 - $ 142.08

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

6 unchanged sentences

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 June 30, 2024 and December 31, 2023,

we had approximately $ 62,000

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

September 30, 2024 and December 31, 2023, we had approximately $ 37,000 and $ 62,000 , respectively,

unrecognized stock-based compensation.

As of September 30, 2024 and December 31, 2023,

there were 1,882,076

warrants outstanding, respectively.

For the three and nine months ended September 30, 2024 there were 1,296,875

and 1,296,875

warrants granted, respectively, and 10,469

warrants cancelled, respectively.

For the three and nine months ended September 30, 2023 there were 157

warrants granted, respectively, and 6,752

options were cancelled, respectively.

The weighted average fair value of warrants issued during 2023 was $ 1.92 .

Warrant transactions during nine months ended September

30, 2024 were as follows:

OF WARRANTS TRANSACTIONS

Exercise Price

Outstanding at Beginning of Year

Forfeited or Cancelled

Outstanding at September 30, 2024

Warrant Exercisable at September 30, 2024

Weighted-Average Fair Value of Warrants Granted During the Year

with respect to warrants outstanding and exercisable at September 30, 2024 is as follows:

SCHEDULE OF WARRANTS

OUTSTANDING AND EXERCISABLE

Warrants Outstanding

Warrants Exercisable

Exercise Prices

Outstanding at

September 30,

Average Remaining

Contractual Life

Exercise Price

Exercisable at

September 30,

Exercise Price

$ 4.30 - $ 85.12

Information with respect to warrants outstanding and

exercisable at December 31, 2023 is as follows:

Warrants Outstanding

Warrants Exercisable

Exercise Prices

Outstanding at

Contractual Life

Exercise Price

Exercisable at

Exercise Price

$ 5.44 - $ 105.60

8 INCOME TAXES

20 unchanged sentences

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 and six months ended June 30, 2024 and 2023 and the effect of including dilutive securities

We had net losses for the three and nine months ended September 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.

1 unchanged sentence

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.

and nine months ended September 30, 2024 and 2023.

OF EARNINGS PER SHARE BASIC AND DILUTED

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Basic and Diluted EPS

3 unchanged sentences

Basic and Diluted Loss Per Share

September 30, 2024

September 30, 2023

Basic and Diluted EPS

9 unchanged sentences

The financial exposure to Iveda

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

Taiwan in the event of failure to provide after- project services in the future as of September 30, 2024 is $ 286,796 .

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 June 30, 2024.

are no such cases as of September 30, 2024.

11 SUBSEQUENT EVENTS

158 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 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.

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

recorded net consolidated revenue of $2.40 million for the three months ended September 30, 2024, compared with $0.87 million for the

three months ended September 30, 2023, an increase of $1.53 million, or 175%.

For the three months ended September 30, 2024, our service

revenue was $0.06 million, or 3% of net revenue, and our equipment sales and installation revenue was $2.34 million, or 97% of net revenue.

For the three months ended September 30, 2023, our service revenue was $0.09 million, or 10% of consolidated net revenue, and our equipment

sales and installation revenue was $0.79 million, or 90% of net revenue.

The increase in total revenue in 2024 compared with the same

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

cost of revenue was $2.0 million (83% of revenue;

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

gross margin of 17%) for the three months ended September 30, 2024, compared with $0.73

million (84% of 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

gross margin of 16%) for the three months ended September 30, 2023, an increase of $1.26 million, or 172%.

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

The slight increase in overall gross margin was primarily

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,

expenses were $1.01 million for the three months ended September 30, 2024, compared with $1.05 million for the three months ended September

30, 2023, a decrease of ($0.04) million, or (3%).

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.

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.

from operations decreased to $0.60 million for the three months ended September 30, 2024, compared with $0.91 million for the three months

ended September 30, 2023, a decrease of $0.31 million, or 34%.

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

increased revenues and related gross margins and reduction in operating expenses.

Income (Expense), Net

income (expense), net was $27,363 of net other income for the three months ended September 30, 2024, compared with $54,303 of net

other expense for the three months ended September 30, 2023, a decrease of ($26,904) of other income, or (50%).

The majority of the

other income for 2024 and 2023 was interest income from cash in the bank.

Loss Attributable to Non-Controlling Interest

Loss Attributable to Non-Controlling Interest of the Philippines Joint Venture was $19,331 for the three months ended September 30,

2024 compared to $23,522 for the three months ended September 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 $0.57 million for the three months ended September 30, 2024, compared with $0.85 million for the three months ended September

The decrease of $0.28 million, or 33%, in net loss was primarily due to increased revenues and related gross margins and reduction

in operating expenses.

of Operations for the Nine months Ended September 30, 2024 Compared with the Nine months Ended September 30, 2023

recorded net consolidated revenue of $4.3 million for the nine months ended September 30, 2024, compared with $5.5 million for the nine

months ended September 30, 2023, a decrease of ($1.2 million), or (22%).

For the nine months ended September 30, 2024, our service revenue

was $0.27 million, or 6% of net revenue, and our equipment sales and installation revenue was $4.0 million, or 94% of net revenue.

the nine months ended September 30, 2023, our service revenue was $0.36 million, or 7% of consolidated net revenue, and our equipment

sales and installation revenue was $5.1 million, or 93% 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

cost of revenue was $3.2 million (74% 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,

gross margin of 26%) for the nine months ended September 30, 2024, compared with $4.6

million (83% of revenue;

gross margin of 17%) for the nine months ended September 30, 2023, a decrease of ($1.4 million), or (30%).

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 equipment and service revenue for smaller contracts.

expenses were $3.4 million for the nine months ended September 30, 2024, compared with $3.2 million for the nine months ended September

30, 2023, an increase of $0.2 million, or 6%.

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 $1.68 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.

from operations was $2.3 million for the nine months ended September 30, 2024, compared with $2.3 million for the nine months ended September

The loss from operations for the nine months was consistent because of the reduction in loss from operations in the most recent

quarter results.

Income (Expense), Net

income (expense), net was $111,657 of net other income for the nine months ended September 30, 2024, compared with $76,500 of net

other expense for the nine months ended September 30, 2023, an increase of $35,157 of other income, or 46%.

The majority of the

other income for 2024 was interest income from cash in the bank.

Loss Attributable to Non-Controlling Interest

Loss Attributable to Non-Controlling Interest of the Philippines Joint Venture was $40,330 for the nine months ended September 30,

2024 compared to $83,489 for the nine months ended September 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 $2.16 million for the nine months ended September 30, 2024, compared with $2.14 million for the nine months ended September

The increase of $0.02 million, or 1%, in net loss was primarily due to increased gross margins and decreased operating costs.

and Capital Resources

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 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

of September 30, 2024, we had cash and cash equivalents of $3.6 million compared to $4.8 million as of December 31, 2023.

This decrease

in our cash and cash equivalents for the nine months ended September 30, 2024 is related to the operating losses during the nine months

ended September 30, 2024 offset by a sale of common stock and pre-funded warrants during the quarter ended September 30, 2024.

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, 2024 was ($3.2) million compared to ($1.9) million net cash

used during the nine months ended September 30, 2023.

Net cash used in operating activities for the nine months ended September 30, 2024

consisted primarily of the net loss of ($2.2) million.

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 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.

Other factors for the nine months ended September 30, 2024 included ($1.0) million

cash used from the increase of inventory and by the increase of ($1.9) million of accounts receivable.

Net cash used by operating activities

for the nine months ended September 30, 2023 consisted primarily of the $0.8 million net collection of accounts receivable offset by

net loss of ($2.1) million.

cash used in investing activities for the nine months ended September 30, 2024 was $0.3 million consisting primarily of the development

of the IvedaAI platforms.

Net cash used by investing activities during the nine months ended September 30, 2023 was $0.6 million consisting

primarily of the development of the IvedaAI platforms.

cash provided by financing activities for the nine months ended September 30, 2024 was $2.3 million compared with $0.9 million provided

during the nine months ended September 30, 2023.

Net cash provided by financing activities in 2024 of $2.3 million is primarily a result

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.

of the sale of common stock and pre-funded warrants, $1.8 million, and the net proceeds from bank loans in Taiwan for the nine months

ended September 30, 2024.

The cash provided 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 $1.4 million offset by $0.45 million payments against short and long term loans in Taiwan during

the nine months ended September 30, 2023.

have experienced significant operating losses since our inception.

42 unchanged sentences

For our U.S.-based segment,

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.

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

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

14 unchanged sentences

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