What changed in this filing

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Item 1A. Risk Factors

2026-03-31 compared with 2025-04-15 · 24 added, 43 removed, 689 unchanged (9% of the section changed)

13 unchanged sentences

Related to Our Company and Business

Our financial statements contain a going concern

The accompanying consolidated

financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets

and the liquidation of liabilities in the normal course of business.

We generated accumulated losses of approximately $53 million since

inception and have insufficient working capital and cash flows to support operations.

These factors raise substantial doubt about our

ability to continue as a going concern.

The consolidated financial statements do not include any adjustments relating to the recoverability

and classification of recorded asset amounts or the amounts and classification of liabilities that might result from this uncertainty.

Have Incurred Significant Net Losses Since Our Inception And May Not Be Able To Achieve Or Maintain Profitability On An Annual Basis

1 unchanged sentence

have incurred significant net losses since our inception.

For the years ended December 31, 2024 and 2023, we incurred net losses of approximately

$3.7 million and $4.0 million, respectively, and had accumulated losses of approximately $51 million through December 31, 2024.

predict if we will achieve or maintain annual profitability in the near future or at all.

The expected growth due to the recent change

in our revenue model may not be sustainable or may decrease, and we may not generate sufficient revenue to achieve or maintain annual

profitability.

Our ability to achieve and maintain annual profitability depends on a number of factors, including our ability to attract

and service customers on a profitable basis and the growth of the video surveillance industry.

If we are unable to achieve or maintain

annual profitability, we may not be able to execute our business plan, our prospects may be harmed, and our stock price could be materially

and adversely affected.

For the years ended December 31, 2025 and 2024, we incurred net losses of

approximately $3.2 million and $4.0 million, respectively, and had accumulated losses of approximately $56 million through December

We cannot predict if we will achieve or maintain annual profitability in the near future or at all.

The expected growth

due to the recent change in our revenue model may not be sustainable or may decrease, and we may not generate sufficient revenue to

achieve or maintain annual profitability.

Our ability to achieve and maintain annual profitability depends on a number of factors,

including our ability to attract and service customers on a profitable basis and the growth of the video surveillance industry.

we are unable to achieve or maintain annual profitability, we may not be able to execute our business plan, our prospects may be

harmed, and our stock price could be materially and adversely affected.

Depend On Certain Key Personnel.

40 unchanged sentences

a significant portion of our revenue has come from a limited number of key customers.

Revenue from five customers out of 70 total customers

represented approximately 67% of total revenue for the year ended December 31, 2024.

These specific customers were 1) Chunghwa Telecom

with 18% 2) SECURITY INTEGRATION & CONSULTANT TECHNOLOGY CO., LTD.

With 16%, 3) Chicony Power Technology Co Ltd with 11% and 4) HWACOM

with 10%, (all Taiwan companies) and Claro Enterprise Solutions (a US company) with 12%.

Revenue from two customers out

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

These specific customers were

1) YOU MING HUEI CO.

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

Total number of customers were

approximately 70 and 65, for the years ended December 31, 2024 and 2023, respectively.

52% of the total accounts receivable at December

31, 2024 was from one customer out of a total of 42 customer accounts receivable accounts.

This specific customer was Chunghwa Telecom.

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 generally do not require collateral in exchange for our products

and services provided on credit.

Revenue from four customers out of approximately 70 total customers represented approximately 63% of total revenue

for the year ended December 31, 2025.

These specific customers were 1) NATIONAL CHUNG SHAN INSTITUTE OF SCIENCE AND TECHNOLOGY with 25%

2) Taiwan Stock Exchange Corporation with 15%, 3) Chunghwa Telecom with 12% and 4) SECURITY INTEGRATION & CONSULTANT TECHNOLOGY CO.,

with 12% (all Taiwan companies).

Revenue from five customers out of approximately 70 total customers represented approximately 67%

of total revenue for the year ended December 31, 2024.

These specific customers were 1) Chunghwa Telecom with 18% 2) SECURITY INTEGRATION

& CONSULTANT TECHNOLOGY CO., LTD.

with 16%, 3) Chicony Power Technology Co Ltd with 11% and 4) HWACOM SYSTEMS INC.

with 10%, (all

Taiwan companies) and Claro Enterprise Solutions (a US company) with 12%.

licensing business, in particular, may be susceptible to concentration of revenue, if through our licensing customers’ large consumer

203 unchanged sentences

face risks associated with increased political uncertainty.

recent invasion of Ukraine by Russia and the sanctions, bans and other measures taken by governments, organizations and companies against

The invasion of Ukraine by Russia and the sanctions, bans and other measures taken by governments, organizations and companies against

Russia and certain Russian citizens in response thereto has increased the political uncertainty in Europe and has strained the relations

387 unchanged sentences

extortion, harm to employees or customers and violation of data privacy or security laws.

do no t presently have any general processes for assessing, identifying, and managing material risks from cybersecurity threats.

do not presently have any general processes for assessing, identifying, and managing material risks from cybersecurity threats.

expand our business operations, we plan to develop processes that will allow for the identification and assessment of cybersecurity risk

35 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-K

Item 1A. Risk Factors