What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-14 · 326 added, 242 removed, 953 unchanged (37% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

June 30, 2025

September 30, 2025

December 31, 2024

21 unchanged sentences

Preferred Stock, $ 0.00001 par value;

12,500,000 shares authorized, no preferred shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

12,500,000 shares authorized, no preferred shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Common Stock, $ 0.00001 par value;

300,000,000 shares authorized;

2,906,726 and 2,808,071 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

4,457,444 and 2,808,071 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional Paid-In Capital

9 unchanged sentences

For the Three

June 30, 2025

September 30, 2025

For the Three

June 30, 2024

June 30, 2025

June 30, 2024

Equipment Sales (including sales of $ 155,750 and 188,445 for the three and six months ended June 30, 2025, respectively.

September 30, 2024

September 30, 2025

September 30, 2024

Equipment Sales (including sales to Iveda Philippines of $ 0 and $ 188,445 for the three and nine months ended September 30, 2025, respectively.

Service Revenue

28 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

For the Three Months ended June 30, 2025

For the Three Months ended June 30, 2024

For the Six Months ended June 30, 2025

For the Six Months ended June 30, 2024

For the Three Months ended

September 30, 2025

For the Three Months ended

September 30, 2024

For the Nine months ended

September 30, 2025

For the Nine months ended

September 30, 2024

$ ( 221,304 )

26 unchanged sentences

Stock Compensation Expense

Net Loss, Restated

Comprehensive Loss

2 unchanged sentences

$ ( 277,027 )

Common Stock Issued in September 2024 offering

Pre-Funded Warrrants – 450,000

Cost of Financing

Reverse Split Fractional shares

Comprehensive Loss

BALANCE AT September 30, 2024

$ ( 51,665,848 )

$ ( 248,072 )

BALANCE AT December 31, 2024

5 unchanged sentences

$ ( 291,089 )

Sale of Common Stock

Comprehensive Loss

BALANCE AT June 30, 2025

$ ( 54,534,638 )

$ ( 170,765 )

$ ( 54,534,638 )

$ ( 170,765 )

Sale of Common Stock

Stock for Services

Comprehensive Loss

BALANCE AT June 30, 2025

BALANCE AT September 30, 2025

$ ( 54,755,942 )

5 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDING JUNE 30, 2025 AND 2024 (UNAUDITED)

June 30, 2025

June 30, 2024

THE NINE MONTHS ENDING SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

September 30, 2025

September 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES

7 unchanged sentences

Accounts Receivable

( 1,872,233 )

Deferred Cost of Goods

10 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from (Payments on) Short-Term Debt, net

Payments on Short-Term Debt, net

Proceeds from Short-Term Debt

Proceeds from (Payments on) Long-Term Debt

4 unchanged sentences

( 1,239,071 )

( 1,889,496 )

Cash and Cash Equivalents- Beginning of Period

CASH AND CASH EQUIVALENTS - END OF PERIOD

Cash, Restricted Cash and Cash Equivalents- Beginning of Period

CASH, RESTRICTED CASH AND CASH EQUIVALENTS - END OF PERIOD

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE SIX MONTHS ENDING JUNE 30, 2025 AND 2023 (UNAUDITED)

June 30, 2025

June 30, 2024

THE NINE MONTHS ENDING SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

September 30, 2025

September 30, 2024

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

6 unchanged sentences

TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDING SEPTEMBER 30,

2025 AND 2024 (UNAUDITED)

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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of Presentation

unaudited condensed financial statements of the Company for the three months ended March 31, 2025 and 2024 have been prepared in accordance

with accounting principles generally accepted in the U.S.

(“GAAP”) for interim financial information and pursuant to the

requirements for reporting on Form 10-Q and Regulation S-K for scaled disclosures for smaller reporting companies.

Accordingly, they

do not include all the information and footnotes required by GAAP for complete financial statements.

However, such information reflects

all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair

presentation of the Company’s financial position and results of operations.

Results shown for interim periods are not necessarily

indicative of the results to be obtained for a full fiscal year.

The balance sheet information as of December 31, 2024 was derived from

the audited financial statements included in the Company’s financial statements as of and for the years ended December 31, 2024

and 2023 contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.

These financial

statements should be read in conjunction with that report.

unaudited condensed financial statements of the Company for the three and nine months ended September 30, 2025 and 2024 have been

prepared in accordance with accounting principles generally accepted in the U.S.

(“GAAP”) for interim financial

information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K for scaled disclosures for smaller

reporting companies.

Accordingly, they do not include all the information and footnotes required by GAAP for complete financial

However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in

the opinion of management, necessary for the fair presentation of the Company’s financial position and results of operations.

Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year.

sheet information as of December 31, 2024 was derived from the audited financial statements included in the Company’s

financial statements as of and for the years ended December 31, 2024 and 2023 contained in the Company’s Annual Report on Form

10-K filed with the Securities and Exchange Commission.

These financial statements should be read in conjunction with that

accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the

1 unchanged sentence

The Company experienced net losses and

negative operating cash flows during the six months ended June 30, 2025, and had an accumulated deficit as of that date.

These factors

raise substantial doubt about the Company’s ability to continue as a going concern.

June 30, 2025, the Company had cash on hand in the amount of $ 1,592,209 .

Management does not expect that its current liquidity will support

operations from a date of twelve months from the issuance of this financial statement.

As a result, management has concluded that there

is substantial doubt about the Company’s ability to continue as a going concern.

The accompanying consolidated financial statements

do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification

of liabilities that might be necessary in the event the company cannot continue as a going concern.

The Company’s independent registered

public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2024,

has also expressed substantial doubt about the Company’s ability to continue as a going concern.

negative operating cash flows during the nine months ended September 30, 2025, and had an accumulated deficit as of that date.

factors raise substantial doubt about the Company’s ability to continue as a going concern.

September 30, 2025, the Company had cash on hand in the amount of $ 3,298,474 .

Subsequent to September 30, 2025 we raised an additional

$ 2,224,048 net proceeds from the sale of our common shares (See Note 11).

Although we believe we now have a strong cash position after

the subsequent raise and have experienced an overall improvement in our operations that will result in improved cash flow, Management

cannot be certain that its current liquidity will support operations and other future business opportunities from a date of twelve months

from the issuance of this financial statement.

As a result, management has concluded that there is substantial doubt about the Company’s

ability to continue as a going concern.

The accompanying consolidated financial statements do not include any adjustments relating to

the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in

the event the company cannot continue as a going concern.

The Company’s independent registered public accounting firm, in its report

on the Company’s consolidated financial statements for the year ended December 31, 2024, has also expressed substantial doubt about

the Company’s ability to continue as a going concern.

continuation of the Company as a going concern is dependent upon its ability to obtain necessary debt or equity financing to continue

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SCHEDULE OF DISAGGREGATION OF REVENUE

For the three months ended June 30, 2025

For three months ended June 30, 2024

For the six months ended June 30, 2025

For the six months ended June 30, 2024

For the three

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Net Sales Source

2 unchanged sentences

Taiwan Government

Net Sales Source

Company sells and installs video surveillance systems comprised of various components of hardware and software.

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all cash is deposited in three financial institutions, two in the United States and one in Taiwan.

At times, amounts on deposit in

the United States may be in excess of the FDIC insurance limit.

Deposits in Taiwan financial institutions are insured by CDIC

(Central Deposit Insurance Corporation) with maximum coverage of 3

million New Taiwan Dollar (NTD).

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

from two customers out of approximately 70 total customers represented approximately 52 %

of total revenue for the six months ended June 30, 2025.

These specific customers were 1) National Chung Shan Institute of Science

and Technology with 31 %

and 2) Taiwan Stock Exchange with 21 %

(both Taiwan companies).

Revenue 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 39%, 2) Chunghwa

Telecom (Taiwan company) with 29%, and 3) Claro Enterprise Solutions with 19% (US Company).

of the total accounts receivable at June 30, 2025 was from three customers out of a total of 42 customer accounts receivable

These specific customers were Taiwan Stock Exchange (47%), Chunghwa Telecom ( 14 %)

and National Chung Shan Institute of Science and Technology ( 25 %)

(all Taiwan companies).

Our accounts receivables are unsecured, and we are at risk to the extent such amounts become uncollectible.

Although we perform periodic evaluations of our customers’ credit and financial condition, we do not require collateral in

exchange for our products and services provided on credit.

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

problem with the collectability of these accounts receivable.

other customers represented greater than 10 % of total revenues the six months ended June 30, 2025 and 2024.

At times, amounts on deposit in the

United States may be in excess of the FDIC insurance limit.

Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit

Insurance Corporation) with maximum coverage of 3 million New Taiwan Dollar (NTD).

At times, amounts on deposit in Taiwan may be in excess

of the CDIC Insurance limit.

from four customers out of approximately 74 total customers represented approximately 66 % of total revenue for the nine months ended

September 30, 2025.

These specific customers were 1) National Chung Shan Institute of Science and Technology with 28 %, 2) Taiwan Stock

Exchange with 15 %, SECURITY INTEGRATION & CONSULTANT TECHNOLOGY CO., LTD.

with 13 % and Chunghwa Telecom with 10 % (all Taiwan companies).

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

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 %.

other customers represented greater than 10 % of total revenues the nine months ended September 30, 2025 and 2024.

of the total accounts receivable at September 30, 2025 was from three customers out of a total of 42 customer accounts receivable accounts.

These specific customers were SECURITY INTEGRATION & CONSULTANT TECHNOLOGY CO., LTD.

( 33 %), Chunghwa Telecom ( 16 %) and National Chung

Shan Institute of Science and Technology ( 25 %) (all Taiwan companies).

Our accounts receivables are unsecured, and we are at risk to

the extent such amounts become uncollectible.

Although we perform periodic evaluations of our customers’ credit and financial condition,

we do not require collateral in exchange for our products and services provided on credit.

These customers are longtime customers, and

we don’t expect any problem with the collectability of these accounts receivable.

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

We had net losses for the six months ended June 30, 2025 and 2024 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 periods ended June

30, 2025 and 2024.

the six months ended June 30, 2025 and 2024, the calculations of basic and diluted loss per share are the same because potential dilutive

securities would have had an anti-dilutive effect.

We had net losses for the nine months ended September 30, 2025 and 2024 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 periods

ended September 30, 2025 and 2024.

the nine months ended September 30, 2025 and 2024, the calculations of basic and diluted loss per share are the same because potential

dilutive securities would have had an anti-dilutive effect.

The potentially dilutive securities consisted of the following:

OF ANTI-DILUTIVE SECURITIES

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

and Cash Equivalents

9 unchanged sentences

rate fluctuations between TWD and USD result in gains or losses that are included in Other Comprehensive Income (Loss) until they are

The Company had $ 567,629 and $ 1,025,675 of its cash and cash equivalents in Taiwan New Dollars at June 30, 2025 and December

The Company had $ 749,619 and $ 1,025,675 of its cash and cash equivalents in Taiwan New Dollars at September 30, 2025 and December

31, 2024, respectively.

5 unchanged sentences

on individual credit valuation and specific circumstances of the customer.

As of June 30, 2025 and December 31, 2024, no allowance for

uncollectible accounts was deemed necessary.

As of September 30, 2025 and December 31, 2024, no allowance

for uncollectible accounts was deemed necessary.

Cost of Goods

7 unchanged sentences

There was no allowance for slow-moving

and obsolete inventory necessary as of June 30, 2025 and December 31, 2024, respectively.

and obsolete inventory necessary as of September 30, 2025 and December 31, 2024, respectively.

and Equipment

3 unchanged sentences

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

Depreciation expense for the six

months ended June 30, 2025 and 2024 was $ 13,341 and $ 15,806 , respectively.

Depreciation expense for the nine

months ended September 30, 2025 and 2024 was $ 16,062 and $ 15,806 , respectively.

have a relatively minimal amount of property and equipment, consisting primarily of office equipment.

7 unchanged sentences

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

Management determined that there was no indicator of impairment as of June 30, 2025 and December 31, 2024.

Equity Method Investment

The Company accounts for investments

in entities in which the Company has significant influence over the entity’s financial and operating policies, but does not

control, using the equity method of accounting.

The equity method investments are initially recorded at cost, and subsequently

increased for capital contributions and allocations of net income, and decreased for capital distributions and allocations of net

Management determined that there was no indicator of impairment as of September 30, 2025 and December 31, 2024.

Method Investment

Company accounts for investments in entities in which the Company has significant influence over the entity’s financial and operating

policies, but does not control, using the equity method of accounting.

The equity method investments are initially recorded at cost,

and subsequently increased for capital contributions and allocations of net income, and decreased for capital distributions and allocations

Equity in net income (loss) from the equity method investment is allocated based on the Company’s economic interest.

Equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount

may not be recoverable.

If it is determined that a loss in value of the equity method investment is other than temporary, an

impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value.

analyses are based on current plans, intended holding periods, and available information at the time the analysis is prepared.

During 2023 the Company made a $ 180,000 investment for a 40% interest in Iveda Phils Joint Venture (located in the Philippines).

Based on Management’s assessment, the value of its equity method investment was impaired as of December 31, 2023, and as such,

recorded an impairment charge of $ 180,000 .

Equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may

not be recoverable.

If it is determined that a loss in value of the equity method investment is other than temporary, an impairment loss

is measured based on the excess of the carrying amount of an investment over its estimated fair value.

Impairment analyses are based

on current plans, intended holding periods, and available information at the time the analysis is prepared.

During 2023 the Company made

a $ 180,000 investment for a 40% interest in Iveda Phils Joint Venture (located in the Philippines).

Based on Management’s assessment,

the value of its equity method investment was impaired as of December 31, 2023, and as such, recorded an impairment charge of $ 180,000 .

As of December 31, 2023 and 2024, the remaining value of its investments was $ 0 .

the three months and six months ended June 30, 2025 we had revenues to Iveda Phils JV of $ 155,750 and 188,445 for the three and six months ended June 30, 2025, respectively..

We are subject U.S.

federal income and state income

taxes, as well as Taiwan income taxes.

During the three and six months ended June 30, 2025 we incurred income tax expense of $ 29,778

related to our Taiwan operations.

During the three months and nine months ended September

30, 2025 we had revenues to Iveda Phils JV of $ 155,750 and 188,445 for the three and nine months ended September 30, 2025, respectively..

are subject U.S.

federal income and state income taxes, as well as Taiwan income taxes.

During the three and nine months ended September

30, 2025 we incurred income tax expense of $ 665 and $ 30,443 , respectively related to our Taiwan operations.

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

36 unchanged sentences

its own assumptions.

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of June 30, 2025

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

30, 2025 and December 31, 2024.

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

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

Fair values were assumed to approximate carrying values for these financial instruments because they are short-term in nature and their

carrying amounts approximate their fair values or because they are receivable or payable on demand.

The carrying values of financing

obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates.

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 amounts due to related

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

and their carrying amounts approximate their fair values or because they are receivable or payable on demand.

The carrying values of

financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest

Accounting Standards

19 unchanged sentences

SCHEDULE OF ACCOUNTS AND OTHER PAYABLES

June 30, 2025

September 30, 2025

December 31, 2024

6 unchanged sentences

SCHEDULE OF SHORT-TERM DEBT

June 30, 2025

September 30, 2025

December 31, 2024

1 unchanged sentence

Due originally in January 2025 and replaced with a new loan which matures January 2026.

Loan from Shanghai Commercial Bank at 3.1 %- 3.2 %

interest rate per annum.

Fully paid off in 2025.

Loan from HuaNam Bank at 3.45 % interest rate per annum.

Due in December 2025.

Due in July 2026.

Loan from ChangHwa Bank at 3 % - 3.3 % interest rate per annum.

Due in November 2025.

Fully paid off in 2025.

Balance at end of period

of June 30, 2025 and December 31, 2024, there was $ 34,225 and $ 29,013 , respectively, of restricted cash pledged as security for the Shanghai

Commercial Bank short term loan.

of September 30, 2025 and December 31, 2024, there was $ 32,802 and $ 29,013 , respectively, of restricted cash pledged as security for

the Shanghai Commercial Bank short term loan.

Long-term debt balances were as follows:

1 unchanged sentence

Loans from Shanghai Commercial Bank with interest rates 2.1% per annum due January 2029 (1)

Loans from Shanghai Commercial Bank with interest rates 2.1 % per annum due January 2029 (1)

Current Portion of Long-term debt

1 unchanged sentence

January 24, 2024, the Company received a facility notice from Shanghai Commercial Bank, granting a revolving loan facility totaling

up to TWD 10,000,000 (approximately $ 300,000 USD) and term loan facility amounting of TWD 20,000,000 (approximately ($ 600,000 USD).

The term for the revolving loan is 1 year and for the term loan is 5 years.

The 5 year term loan requires monthly payments including

interest and principal, and the revolving loan requires a full principal repayment at the maturity date.

The short-term Shanghai

Commercial Bank loan is 75 % securitized by the government guarantee fund called SME credit guarantee fund and 10 % by saving deposit

up to TWD 10,000,000

(approximately $ 300,000

USD) and term loan facility amounting of TWD 20,000,000

(approximately ($ 600,000

The term for the revolving loan is 1

year (and was fully paid off as of September 30, 2025) and for the term loan is 5

year term loan requires monthly payments including interest and principal, and the revolving loan requires a full principal

repayment at the maturity date.

The short-term Shanghai Commercial Bank loan is 75 %

securitized by the government guarantee fund called SME credit guarantee fund and 10 %

by saving deposit security.

The guarantors of this loan are Mr.

Cheung, who are both part of Iveda Taiwan’s management team.

Cheung, who are both part of Iveda Taiwan’s

management team.

4 PREFERRED STOCK

29 unchanged sentences

for any of our securities.

4, 2024, We and a certain institutional investor (the “Investor”) entered into a securities purchase agreement (the “Securities

Purchase Agreement”) pursuant to which the Company agreed to sell and issue to the Investor in a registered direct offering (the

(i) 225,000 shares of common stock, par value $ 0.00001 per share (the “Common Stock”), at an offering

price of $ 3.44 per share, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to 400,000 shares of Common

Stock, at an offering price of $ 3.43 per Pre-Funded Warrant, to the investor whose purchase of Common Stock in this offering would otherwise

result in the investor, together with its affiliates and certain related parties, beneficially own more than 4.99% (or at the election

of the investor, 9.99%) of the Company’s outstanding common stock immediately following the consummation of this Offering.

of the Pre-Funded Warrants were exercisable for one share of Common Stock.

The Pre-Funded Warrants had an exercise price of $ 0.008 per

share, were immediately exercisable, and all of the Pre-Funded Warrants were exercised in 2024.

The Offering was made pursuant to an effective

shelf registration statement on Form S-3 (File No.

333-276676) that was filed with the Securities and Exchange Commission (the “SEC”)

on January 24, 2024 and declared effective by the SEC on February 7, 2024.

During 2025 we filed a

Prospectus Supplement to the Prospectus dated January 24, 2024 to issue up to $ 5,082,431 ,

from time to time through or to our sales agent, H.C.

Wainwright & Co.

(the “Agent”).

These sales,were made pursuant

to the terms of an At Market Issuance Sales Agreement, or the Sales Agreement, between us and the Agent (the “Sales

As of September 30, 2025 we had completed the sale of 1,599,383

shares of common stock with net proceeds of $ 2,706,346 .

See Note 11 Subsequent Events for October 2025 disclosure of additional sales.

6 STOCK OPTION PLANS

9 unchanged sentences

The 2010 Option Plan expired on January 18, 2020.

As of June 30, 2025 there

As of September 30, 2025 there

were 21,422 options outstanding under the 2010 Option Plan and as of December 31, 2024 there were 23,659 options outstanding under the

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the number of shares issuable under the 2020 Option Plan to 656,250 shares.

of June 30, 2025 and December 31, 2024, there were 224,256 and 217,056 options outstanding, respectively, under all the option plans.

of September 30, 2025 and December 31, 2024, there were 221,756 and 217,056 options outstanding, respectively, under all the option plans.

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

16 unchanged sentences

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

option transactions during six months ended June 30, 2025 were as follows:

option transactions during nine months ended September 30, 2025 were as follows:

SCHEDULE OF STOCK OPTION TRANSACTIONS

June 30, 2025

Weighted-Average

September 30, 2025

Exercise Price

3 unchanged sentences

Options Exercisable at Period-End

the six months ended June 30, 2025 the Company granted options to acquire 10,000 shares of our common stock with a fair value of $ 16,573

the nine months ended September 30, 2025 the Company granted options to acquire 10,000 shares of our common stock with a fair value of

$ 16,573 or based on a Black-Scholes valuation model.

During the six month periods ended June 30, 2025 and 2024 the Company recognized $ 0 and

$ 25,600 of compensation cost relating to the vesting of options.

with respect to stock options outstanding and exercisable at June 30, 2025 is as follows:

During the nine month periods ended September 30, 2025 and 2024 the Company recognized

$ 0 and $ 25,600 of compensation cost relating to the vesting of options.

with respect to stock options outstanding and exercisable at September 30, 2025 is as follows:

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE AND EXERCISABLE EXERCISE PRICE RANGE

3 unchanged sentences

Outstanding at

June 30, 2025

September 30, 2025

Average Remaining

Exercise Price

Exercisable at

June 30, 2025

September 30, 2025

Exercise Price

6 unchanged sentences

Risk-Free Interest Rate

NOTE 7 WARRANTS

transactions during the six months ended June 30, 2025 were as follows:

transactions during the nine months ended September 30, 2025 were as follows:

SCHEDULE OF WARRANT TRANSACTIONS

For the six months ended June 30, 2025

September 30, 2025

Weighted-Average

5 unchanged sentences

Weighted-Average Fair Value of Warrants Granted During the Period

with respect to warrants outstanding and exercisable at June 30, 2025 is as follows:

with respect to warrants outstanding and exercisable at September 30, 2025 is as follows:

SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE

3 unchanged sentences

Outstanding at

June 30, 2025

September 30, 2025

Average Remaining Contractual

1 unchanged sentence

Exercisable at

June 30, 2025

September 30, 2025

Exercise Price

2 unchanged sentences

weighted-average assumptions used for options granted.

of June 30, 2025 there were 1,863,069 outstanding.

For the six months ended June 30, 2025 there were no warrants granted and 19,007 warrants

of September 30, 2025 there were 1,863,069 outstanding.

For the nine months ended September 30, 2025 there were no warrants granted and

19,007 warrants cancelled.

Company accounts for its leases in accordance with the guidance of ASC 842, Leases .

7 unchanged sentences

the present value of unpaid lease payments.

In 2025, the Company entered into a long-term non-cancellable lease agreement for its facility that requires aggregate average monthly

payments of $ 4,540 beginning March 2025 through February 2029.

On the date of the lease, the Company determined that the value of

the new right of use asset and lease liability was $ 182,668 , respectively, using a discount rate of 8 %.

During the period ended

June 30, 2025, the Company reflected amortization of the right of use assets of $ 13,301 related to the lease, resulting in a net asset

balance of $ 166,053 as of June 30, 2025.

During the period ended June 30, 2025 , the Company made combined aggregate payments of $ 4,858 towards

the lease liabilities.

As of June 30, 2025 the lease liability amounted to $ 178,074 .

In 2025, the Company entered into a long-term non-cancellable lease agreement for its facility that requires aggregate average

monthly payments of $ 4,540

beginning March 2025 through February 2029.

On the date of the lease, the Company determined that the value of the new right of use

asset and lease liability was $ 182,668 ,

respectively, using a discount rate of 8 %.

During the period ended September 30, 2025, the Company reflected amortization of the right of use assets of $ 23,405

related to the lease, resulting in a net asset balance of $ 159,263

as of September 30, 2025.

During the period ended September 30, 2025, the Company made combined aggregate payments of $ 33,050

related to these leases, of which $ 15,267 was reflected as a reduction in the lease liabilities.

As of September 30, 2025 the lease

liability amounted to $ 167,413 .

9 COMMITMENTS AND CONTINGENCIES

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non-performance and that the plaintiff is not entitled to any fees in the offering since it raised none of the funds in the offering.

The action is currently in the discovery stage and the Company intends to vigorously defend the action.

The parties have agreed to a mutually agreeable settlement amount to cancel the action which has been provided for in the accompanying September 30, 2025 financial statements.

to certain contracts with Chicony Power Technology Co., Ltd., Shihlin Electric & Engineering Corporation, National Chung Shan Institute

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If Iveda Taiwan fails to provide these after-project services in the future, other parties of the related contract would have

The financial exposure to Iveda Taiwan in the event of failure to provide after- project services in the future as of June

The financial exposure to Iveda Taiwan in the event of failure to provide after- project services in the future as of September

30, 2025 is $ 396,133 .

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SCHEDULE OF SEGMENT INFORMATION

Three Months Ended June 30, 2025

Three Months Ended June 30, 2024

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

Cost of Goods Sold

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$ ( 796,668 )

Six Months Ended June 30, 2025

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

Cost of Goods Sold

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SCHEDULE OF REVENUES BY GEOGRAPHIC REGIONS

Six months ended

June 30, 2025

June 30, 2024

Nine months ended

United States

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SCHEDULE OF NET ASSETS LIABILITIES BY GEOGRAPHIC REGIONS

June 30, 2025

December 31, 2024

Net Assets (Liabilities)

June 30, 2025

December 31, 2024

1 unchanged sentence

Republic of China (Taiwan)

Republic of China (Taiwan) [Member]

Total Consolidated

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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.

Company sold 1,373,809

shares of common stock in October 2025 for net proceeds of $ 2,224,048

via the ATM with H.C.

Wainwright effectively closing out the February 27, 2025 S-3 prospectus supplement.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

of Operations for the Three Months Ended June 30, 2025 Compared with the Three Months Ended June 30, 2024

of Operations for the Three Months Ended September 30, 2025 Compared with the Three Months Ended September 30, 2024

table below sets forth the Net Revenue, Cost of Goods Sold, Operating Expenses, Other Income and Expenses, Tax Expense and Net Income

by segment for each of the respective periods and a comparison period over period.

Three Months Ended

June 30, 2025

Three Months Ended

June 30, 2024

Comparison of Three Months ended

June 30, 2025 and 2024

Cost of Goods Sold

of Three Months ended

30, 2025 and 2024

of Goods Sold

Operating Expenses

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Research and Development

Other operating expenses

Total Operating Expenses

Loss (Income) from Operations

Interest Income and Other (Expenses), net

Net loss before Income Tax

Other operating

Operating Expenses

(Income) from Operations

Interest Income

and Other (Expenses), net

loss before Income Tax

Income Tax Expense

decrease in revenue for the three months ended June 30, 2025 compared with the same period in 2024 is attributable primarily to decreased

equipment sales from Iveda Taiwan as a result of delivery timing related to long-term government contracts offset by increased equipment

sales in the US as distributor revenues increase.

decrease in overall gross margin was primarily attributed to the lower margin larger government contract sales in Taiwan.

net decrease in operating expenses in the three months ended June 30, 2025 compared with the same period in 2024 is due primarily to

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

majority of the decrease in loss from operations was primarily due to increased revenues and related gross margins and reduction in operating

decrease in net loss was primarily due to a reduction in operating expenses for the three months ended June 30, 2025 compared to the

same period in 2024.

of Operations for the Six Months Ended June 30, 2025 Compared with the Six Months Ended June 30, 2024

decrease in revenue for the three months ended September 30, 2025 compared with the same period in 2024 is attributable primarily to

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

increase in overall gross margin was primarily attributed to the higher margin contract sales in Taiwan.

net decrease in operating expenses in the three months ended September 30, 2025 compared with the same period in 2024 is due primarily

to no re-audit and general operation expenses in the US and Taiwan based operations during this period.

majority of the decrease in loss from operations was primarily due to increased gross margins and reduction in operating expenses.

decrease in net loss was primarily due to a reduction in operating expenses for the three months ended September 30, 2025 compared to

the same period in 2024.

of Operations for the Nine months ended September 30, 2025 Compared with the Nine months ended September 30, 2024

table below sets forth the Net Revenue, Cost of Goods Sold, Operating Expenses, Other Income and Expenses, Tax Expense and Net Income

by segment for each of the respective periods and a comparison period over period.

of Six Months ended

Nine Months Ended

September 30, 2025

Nine Months Ended

September 30, 2024

Comparison of Six Months ended

June 30, 2025 and 2024

of Goods Sold

and Payroll Expenses

and Entertainment

Company expenses

and Accounting

and Development

Operating Expenses

Salaries and Payroll Expenses

Travel and Entertainment

Public Company expenses

Audit and Accounting

Research and Development

Other operating

Operating Expenses

(Income) from Operations

Income and Other (Expenses), net

Interest Income

and Other (Expenses), net

loss before Income Tax

Income Tax Expense

$ (1,579,224 )

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$ (2,931,540 )

increase in revenue for the six months ended June 30, 2025 compared with the same period in 2024 is attributable primarily to increased

increase in revenue for the nine months ended September 30, 2025 compared with the same period in 2024 is attributable primarily to increased

equipment sales from Iveda Taiwan as a result of delivery timing related to long-term government contracts and increased US revenues

through its distributors.

decrease in overall gross margin was primarily attributed to the lower margin larger government contract sales in Taiwan.

net decrease in operating expenses in the six months ended June 30, 2025 compared with the same period in 2024 is due primarily to a

reduction in R&D expense in the US and no significant investor relations campaigns in the US based operations during this period.

overall gross margin had a slight increase attributed to the higher margin contract sales in the US and Taiwan.

net decrease in operating expenses in the nine months ended September 30, 2025 compared with the same period in 2024 is due primarily

to a reduction in R&D expense in the US and no significant investor relations campaigns in the US based operations during this period.

majority of the decrease in loss from operations was primarily due to increased revenues and related gross margins and reduction in operating

decrease in net loss was primarily due to a reduction in operating expenses for the six months ended June 30, 2025 compared to the same

period in 2024.

decrease in net loss was primarily due to a reduction in operating expenses for the nine months ended September 30, 2025 compared to

the same period in 2024.

and Capital Resources

of June 30, 2025, we had cash and cash equivalents of $1.6 million compared to $2.7 million as of December 31, 2024.

This decrease in

our cash and cash equivalents for the six months ended June 30, 2025 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, 2025 was ($1.5) million compared to ($2.3) million net cash used

during the six months ended June 30, 2024.

Net cash used in operating activities for the six months ended June 30, 2025 consisted primarily

of the net loss of ($1.4) million.

Net cash used by operating activities for the six months ended June 30, 2024 consisted primarily of

the net loss of ($1.9) million.

cash used in investing activities for the three months ended June 30, 2025 and 2024 were negligible.

cash provided by financing activities for the six months ended June 30, 2025 were $0.3 million compared with $0.5 million provided during

the six months ended June 30, 2024.

Net cash provided by financing activities in 2025 included $0.2 from the sale of stock as compared

to $0.5 million proceeds from long term loans in Taiwan during the six months ended June 30, 2024.

of September 30, 2025, we had cash and cash equivalents of $3.3 million compared to $2.7 million as of December 31, 2024.

This increase

in our cash and cash equivalents for the nine months ended September 30, 2025 is related to the sale of common stock offset by the operating

losses during the nine months ended September 30, 2025.

There are no legal or economic factors that materially impact our ability to

transfer funds between our U.S.-based and Taiwan-based segments.

cash used in operating activities during the nine months ended September 30, 2025 was ($1.8) million compared to ($3.5) million net cash

used during the nine months ended September 30, 2024.

Net cash used in operating activities for the nine months ended September 30, 2025

consisted primarily of the net loss of ($1.6) million.

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

2024 consisted primarily of the net loss of ($2.5) million.

cash used in investing activities for the three months ended September 30, 2025 and 2024 were negligible.

cash provided by financing activities for the nine months ended September 30, 2025 were $2.4 million compared with $2.3 million provided

during the nine months ended September 30, 2024.

Net cash provided by financing activities in 2025 included $2.7 million from the sale

of stock via an ATM managed by H.C.Wainwright as compared to $1.8 million proceeds from the sale of stock in a direct offering during

the nine months ended September 30, 2024.

have experienced significant operating losses since our inception.

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which expire after five years.

to the Internal Revenue Code of 1986, as amended (“IRC”), specifically Sections 382 and 383, the Company’s ability

to use tax attribute carryforwards to offset future taxable income is limited if the Company experiences a cumulative change in ownership

of more than 50% within a three-year testing period.

The Company has not completed an ownership change analysis pursuant to IRC Section

382 therefore the ability to offset taxable income in the future may be impacted by ownership changes occurring prior to December 31,

If ownership changes within the meaning of IRC Section 382 occur in the future, the amount of remaining tax attribute carryforwards

available to offset future taxable income and income tax expense in future years may be significantly restricted or eliminated.

the Company’s deferred tax assets associated with such tax attributes could be significantly reduced or eliminated upon realization

of an ownership change within the meaning of IRC Section 382.

If eliminated, the related asset would be removed from the deferred tax

asset schedule, with a corresponding reduction in the valuation allowance.

Additionally, limitations on the utilization of the Company’s

tax attribute carryforwards can increase the amount of taxable income and current income tax expense recognized.

Due to the existence

of the valuation allowance, ownership change limitations that are not significant may not impact the Company’s effective tax rate.

have limited liquidity and have not yet established a stabilized source of revenue sufficient to cover operating costs, based on our

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For our U.S.-based segment,

we had no doubtful accounts receivable allowances for the nine months ended June 30, 2025 and year ended December 31, 2024.

For our Taiwan-based

segment, we set up no doubtful accounts receivable allowances for the nine months ended June 30, 2025 and year ended December 31, 2024.

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, 2025 and year ended December 31, 2024.

our Taiwan-based segment, we set up no doubtful accounts receivable allowances for the nine months ended September 30, 2025 and year

ended December 31, 2024.

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