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Item 1. Financial Statements

2025-05-13 compared with 2024-11-14 · 783 added, 983 removed, 299 unchanged (86% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

September 30, 2024

December 31, 2023

and Cash Equivalents

Receivable, Net

Cost of Goods

Current Assets

Cash and Cash Equivalents

Restricted Cash

Accounts Receivable, Net

Inventory, Net

Other Current Assets

Total Current Assets

Property and Equipment, Net

Intangible Asset, Net

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Assets

and Equipment, Net

of Use Asset, Net

AND STOCKHOLDERS’ EQUITY

and Other Payables

Portion of Long-Term Debt

Portion of Lease Liability

Current Liabilities

Accounts and Other Payables

Short Term Debt

Current Maturities of Long-Term Debt

Total Current Liabilities

Long-term Debt

Total Liabilities

STOCKHOLDERS’ EQUITY

Preferred Stock, $ 0.00001 par value;

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

Common Stock, $ 0.00001 par value;

Term Lease Liability, Net of Current Portion

STOCKHOLDERS’

Stock, $ 0.00001 par value;

12,500,000 shares authorized, no preferred shares issued and outstanding as of March 31, 2025 and December

31, 2024, respectively

Stock, $ 0.00001 par value;

300,000,000 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

Non-controlling Interest

Accumulated Other Comprehensive Loss

Accumulated Deficit

2,808,071 and 2,808,071 shares issued and outstanding as of March 31, 2025

and December 31, 2024, respectively

Paid-In Capital

Other Comprehensive Loss

( 53,970,389 )

( 53,176,717 )

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

Stockholders’ Equity

Liabilities and Stockholders’ Equity

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three

September 30,

For the Three

September 30,

Equipment Sales

Service Revenue

TOTAL REVENUE

COST OF REVENUE

2025 (Unaudited)

2024 (Restated)

& Administrative

& Development

Operating Expenses

General & Administrative

Total Operating Expenses

LOSS FROM OPERATIONS

FROM OPERATIONS

( 1,331,879 )

INCOME (EXPENSE)

Miscellaneous

Income (Expense)

Other Income (Expense), Net

BEFORE INCOME TAXES

( 1,258,251 )

OTHER INCOME (EXPENSE)

Miscellaneous Income (Expense)

Interest Income

Interest Expense

Total Other Income (Expense), Net

LOSS BEFORE INCOME TAXES

PROVISION FOR INCOME TAXES

$ ( 793,672 )

$ ( 1,289,596 )

BENEFIT (PROVISION) FOR INCOME TAXES

AND DILUTED LOSS PER SHARE

AVERAGE SHARES

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF

COMPREHENSIVE

March 31, 2025

March 31, 2024

$ ( 793,672 )

$ ( 1,289,596 )

Comprehensive Loss

in Equity Adjustment from Foreign Currency Translation, Net of Tax

Comprehensive

$ ( 804,552 )

$ ( 1,324,187 )

Net Loss attributable to the Non-Controlling Interest

NET LOSS ATTRIBUTABLE TO IVEDA SOLUTIONS, INC.

accompanying Notes to Unaudited Condensed Consolidated Financial Statements .

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Comprehensive

Stockholders’

AT December 31, 2023

$ ( 49,195,897 )

$ ( 221,418 )

Cost of Financing

Loss, Restated

( 1,289,596 )

BASIC AND DILUTED LOSS PER SHARE

WEIGHTED AVERAGE SHARES

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF

Comprehensive

For the Three

September 30,

For the Three

September 30,

Net Loss Attributable to Iveda Solutions, Inc.

AT March 31, 2024, Restated

$ ( 50,485,493 )

$ ( 256,009 )

AT December 31, 2024

$ ( 53,176,717 )

$ ( 280,209 )

Other Comprehensive Loss

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

Comprehensive Loss

$ ( 53,176,717 )

$ ( 280,209 )

Comprehensive

AT March 31, 2025

$ ( 53,970,389 )

$ ( 291,089 )

$ ( 53,970,389 )

$ ( 291,089 )

accompanying Notes to Unaudited Condensed Consolidated Financial Statements

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Comprehensive

Stockholders’

BALANCE AT December 31, 2022

CONSOLIDATED STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDING MARCH 31, 2025 AND 2024 (UNAUDITED)

FLOWS FROM OPERATING ACTIVITIES

$ ( 793,672 )

$ ( 1,289,596 )

Exercise of warrants issued August 2022

Comprehensive Loss

BALANCE AT March 31, 2023

to Reconcile Net Loss to Net Cash Used in Operating Activities

Depreciation and Amortization

in operating assets and liabilities

Cost of Goods

Current Assets

(Decrease) in Accounts and Other Payables

Cash Used in Operating Activities

( 1,293,473 )

FLOWS FROM INVESTING ACTIVITIES

(Sale) of Property and Equipment

Cash Used in Investing Activities

FLOWS FROM FINANCING ACTIVITIES

from (Payments on ) Short-Term Debt, net

from (Payments on) Long-Term Debt

Stock Issued, Net of Cost of Financing

Cash Provided by Financing Activities

OF EXCHANGE RATE CHANGES ON CASH

DECREASE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS

and Cash Equivalents- Beginning of Period

AND CASH EQUIVALENTS - END OF PERIOD

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

THE THREE MONTHS ENDING MARCH 31, 2025 AND 2023 (UNAUDITED)

DISCLOSURE OF CASH FLOW INFORMATION

DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Present Value of right of Use Asset and Lease Obligations on New Lease

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Solutions, Inc.

(“Iveda”, or the “Company”) was incorporated in Nevada as Charmed Homes, Inc.

in June 2006.

October 15, 2009, IntelaSight, d/b/a Iveda, a Washington corporation, became a wholly owned subsidiary of the Company.

In December 2010,

IntelaSight merged with and into the Company and the Company became the surviving company.

Iveda offered the first cloud hosting of streaming

and recorded video from security cameras for its customers and real-time remote surveillance service utilizing intervention specialists

to watch our customers’ cameras in real time, 24/7.

Iveda offers smart city technologies globally, offering advanced AI-driven

video surveillance solutions and a robust suite of Internet of Things (IoT) platforms that power digital transformation for cities and

commercial clients worldwide.

April 30, 2011, we completed our acquisition of Sole Vision Technologies (fka MEGAsys and dba Iveda Taiwan), a company based in Taiwan.

We consolidate our financial statements with the financial statements of Iveda Taiwan.

All intercompany balances and transactions have

been eliminated in consolidation.

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

United States of America, which contemplates the continuation of the Company as a going concern.

The Company experienced net losses and

negative operating cash flows during the three months ended March 31, 2025, and had an accumulated deficit as of

These factors raise substantial doubt about the Company’s

ability to continue as a going concern.

March 31, 2025, the Company had cash on hand in the amount of $ 2,519,088 .

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.

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

operations until it begins generating positive cash flow.

No assurance can be given that any future financing will be available or, if

available, that it will be on terms that are satisfactory to the Company.

Even if the Company is able to obtain additional financing,

it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our stockholders,

in case of equity financing.

of Accounting

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

accepted in the United States of America.

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

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

actual results could differ from those estimates.

On an ongoing basis, we evaluate our estimates, including those related to accounts

receivable, deferred cost of revenue, share-based compensation, deferred income taxes, provisions for losses, and inventory reserve,

among other items.

and Expense Recognition

Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers , and all

related appropriate guidance.

The Company recognizes revenue under the core principle to depict the transfer of control to its customers

in an amount reflecting the consideration to which it expects to be entitled.

In order to achieve that core principle, the Company applies

the following five-step approach:

(1) identify the contract with a customer, (2) identify the performance obligations in the contract,

(3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize

revenue when a performance obligation is satisfied.

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

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

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

As part of its consideration for the contract,

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

For each contract, the Company

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

In determining the

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

it expects to be entitled.

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

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

The Company allocates the transaction

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

The product price as specified on the purchase order is

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

circumstances.

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

, when the Company’s

performance obligations is satisfied), which typically occurs at shipment unless installation is required as with certain of our Taiwan

sales – see below.

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

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

Customers do not have a right

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

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

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

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

majority of Iveda Taiwan sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality

or a commercial customer) through its sales force, which is composed of its employees.

Revenue is recorded when the equipment is

shipped to the end customer unless the contract requires the inventory to be installed before it can be billed and charged for service

when installation or maintenance work is performed.

If inventory is shipped to the customer before it is installed the inventory

is reclassified to Deferred Cost of Goods.

for product and software sales without installation is recorded when the product and/or software has been shipped to the customer.

from fixed-price equipment installation contracts, if any, is recognized as the contracts allow for invoicing at various milestones.

and administrative costs are charged to expense as incurred.

Provisions for estimated losses on uncompleted contracts are made in the

period in which such losses are determined.

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

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

Changes in estimated job profitability resulting

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

in estimates in the current period.

Profit incentives are included in revenue when their realization is deemed earned by the contract.

US hardware sales are to domestic and 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, customer receivables and all related risks

and rewards of ownership.

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

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

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

The revenues are recorded monthly, if

the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective

US also sells hardware and software warranty and maintenance for an annual fee that are paid yearly.

The revenues are recorded annually,

if the revenue is a material amount it will be recorded as deferred revenue and amortized on a straight-line basis over the respective

following table presents our net sales by revenue source for the period presented:

SCHEDULE OF DISAGGREGATION OF REVENUE

For the Three Months Ended March 31,

Municipalities

Net Sales Source

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

Concentrations

instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and trade

accounts receivable.

Substantially

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 NTD 3 million.

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

from two customers out of approximately 70 total customers represented approximately 58 % of total revenue for the three months ended

March 31, 2025.

These specific customers were 1) National Chung Shan Institute of Science and Technology with 41 % and 2) Chunghwa Telecom

with 17 % (bothTaiwan companies).

Revenue from three customers out of 69 total customers represented approximately 50 % of total revenue

for the three months ended March 31, 2024.

These specific customers were 1) Chunghwa Telecom (Taiwan company) with 19 %, 2) Claro Enterprise

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

of the total accounts receivable at March 31, 2025 was from two customers out of a total of 42 customer accounts receivable accounts.

These specific customers were Chunghwa Telecom ( 37 %) and National Chung Shan Institute of Science and Technology ( 37 %) (both 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

other customers represented greater than 10 % of total revenues the three months ended March 31, 2025 and 2024.

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

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

March 31, 2025 and 2024.

the three months ended March 31, 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

March 31, 2025

March 31, 2024

and Cash Equivalents

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

months or less to be cash equivalents.

Company’s consolidated financial statements include the results of operations and financial position of its subsidiary located

The subsidiary’s functional currency is the Taiwan New Dollar (TWD).

For consolidation purposes, the subsidiary’s

financial statements are translated into US Dollars (USD) using the following methods:

Assets and liabilities are translated using the

exchange rate at the balance sheet date.

Income statement items are translated using the average exchange rate for the period.

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 $ 1,602,567 and $ 1,025,675 of its cash and cash equivalents in Taiwan New Dollars at March 31, 2025 and December

31, 2024, respectively.

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

information, and existing economic conditions.

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

considered delinquent.

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

receivables are written off based on individual credit valuation and specific circumstances of the customer.

As of March 31, 2025

and December 31, 2024, no allowance for uncollectible accounts was deemed necessary.

Cost of Goods

Taiwan we ship product to be held at the customer locations in advance of installment per the contract with the customer.

We reclassify

inventory that we have purchased and delivered to the customer location to Deferred Cost of Goods until this product is installed and

can be invoiced to the customer.

is stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis.

review our inventories for excess or obsolete products or components 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.

There was no allowance for slow-moving

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

and Equipment

and equipment are stated at cost.

Depreciation is computed primarily using the straight-line method over estimated useful lives of three 3

to seven years .

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

Depreciation expense for the three

months ended March 31, 2025 and 2024 was $ 7,285 and $ 7,900 , respectively.

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

We review the recoverability of

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

our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset

group may not be recoverable.

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

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

If such assets are considered

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

Management determined that there was no indicator of impairment as of December 31, 2024 and 2023.

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

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

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

Valuation allowances are established

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

than not, will be realized.

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

and liabilities.

are subject to U.S.

federal income tax as well as state income tax.

income tax returns are subject to review and examination by federal, state, and local authorities.

tax returns for the

years 2020 to 2024 are open to examination by federal, local, and state authorities.

Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance.

Our Taiwan tax return for the years 2020

to 2024 are open to examination by the Taiwan Ministry of Finance.

cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment.

Company periodically issues stock, stock options and restricted stock awards to employees and non-employees in non-capital raising transactions

for services and for financing costs.

The Company accounts for such grants issued and vesting based on ASC 718, Compensation-Stock Compensation

whereby the value of the award is measured on the date of grant and recognized for employees as compensation expense on the straight-line

basis over the vesting period.

Recognition of compensation expense for non-employees is in the same period and manner as if the Company

had paid cash for the services.

The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option

Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options

or restricted stock, and future dividends.

Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton

Option Pricing model and based on actual experience.

The assumptions used in the Black-Scholes-Merton Option Pricing model could materially

affect compensation expense recorded in future periods.

Value of Financial Instruments

Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring

Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure

their fair value.

Accounting Standards Codification Section 820 defines the following levels of subjectivity associated with the inputs:

1—Quoted prices in active markets for identical assets or liabilities.

2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.

3—Unobservable inputs in which there is little or no market data for the asset or liability which requires the Company to develop

its own assumptions.

value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of March 31,

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.

Accounting Standards

November 2024, FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures

(Subtopic 220-40) Disaggregation of Income Statement Expenses.

The guidance in ASU 2024-03 requires public business entities to disclose

in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases

of inventory;

employee compensation;

and depreciation and amortization expense for each caption on the income statement where such expenses

are included.

The update is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning

after December 15, 2027.

Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the

effective date or retrospectively to all periods presented in the financial statements.

We are currently evaluating the provisions of

this guidance and assessing the potential impact on our financial statement disclosures.

recent accounting pronouncements and guidance issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified

Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on

the Company’s present or future financial statements.

2 Accounts and Other Payables

SCHEDULE OF ACCOUNTS AND OTHER PAYABLES

Revenue and Customer Deposits

and Other Payables

3 SHORT-TERM AND LONG-TERM DEBT

short-term debt balances were as follows:

SCHEDULE OF SHORT-TERM DEBT

from Shanghai Commercial Bank at 3.1 %- 3.2 % interest rate per annum.

Due originally in January 2025 and replaced with

a new loan which matures January 2026.

from HuaNam Bank at 3.4 % interest rate per annum.

Due in June 2025.

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

Due in May 2025.

at end of period

of March 31, 2025 and December 31, 2024, there was $ 28,606 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:

SCHEDULE OF LONG-TERM DEBT

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

Portion of Long-term debt

at end of period

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

The guarantors of this loan are Mr.

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

4 PREFERRED STOCK

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

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

Our Articles of Incorporation

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

of Directors.

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

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

our common stock.

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

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

5 COMMON STOCK

are authorized to issue up to 300,000,000 shares of common stock, par value $ 0.00001 per share.

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.

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.

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

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

Holders of our common stock are entitled

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

In the event of liquidation, dissolution,

or winding up of our company, subject to the preferential liquidation rights of any series of preferred stock that we may from time to

time designate, the holders of our common stock are entitled to share ratably in all of our assets remaining after payment of all liabilities

and preferential liquidation rights.

Holders of our common stock have no conversion, exchange, sinking fund, redemption, or appraisal

rights (other than such as may be determined by the Board of Directors in its sole discretion) and have no preemptive rights to subscribe

for any of our securities.

7 STOCK OPTION PLANS 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 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 375,000 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 March 31, 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

2010 Option Plan.

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

2020 Plan (the “2020 Plan”).

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, 2024 there were 193,397 options outstanding

under the 2020 Option Plan.

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

October 7, 2022 (No.

333- 267792).

Common Stock for Services

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2023

In 2024, the 2020 Option Plan was amended to increase the number of shares issuable under the 2020

Option Plan to 656,250 shares.

of March 31, 2025 and December 31, 2024, there were 214,819 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,

as amended (the “Code”), or as options not qualified under Section 422 of the Code.

All options are issued with an exercise

price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors.

stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m)

Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m).

the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant.

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

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.

option transactions during three months ended March 31, 2025 were as follows:

SCHEDULE OF STOCK OPTION TRANSACTIONS

at Beginning of Period

at End of Period

Exercisable at Period-End

with respect to stock options outstanding and exercisable at March 31, 2025 is as follows:

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

Outstanding at

Exercisable at

1.43 - 142.08

fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average

assumptions used for options granted.

transactions during the three months ended March 31, 2025 were as follows:

SCHEDULE OF WARRANT TRANSACTIONS

the three months ended March 31, 2025

at Beginning of Period

at End of Period

Exercisable at Period-End

Weighted-Average

Fair Value of Warrants Granted During the Period

with respect to warrants outstanding and exercisable at March 31, 2025 is as follows:

SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE

Average Remaining Contractual

fair value of each warrant granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following

weighted-average assumptions used for options granted.

of March 31, 2025 there were 1,863,069 outstanding.

For the three months ended March 31, 2025 there were no warrants granted and 19,007 warrants

NOTE 8 LEASES

The Company accounts for its leases in accordance

with the guidance of ASC 842, Leases .

The Company determines whether a contract is, or contains, a lease at inception.

assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s

obligation to make lease payments arising from the lease.

Right-of-use assets and lease liabilities are recognized at lease commencement

based upon the estimated present value of unpaid lease payments over the lease term.

The Company uses its incremental borrowing rate based

on the information available at lease commencement in determining 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 March 31, 2025, the Company reflected amortization of the right of use assets of $ 3,314 related to the lease, resulting in a net

asset balance of $ 179,354 as of March 31, 2025.

During the period ended March 31, 2025 , the Company made combined aggregate

payments of $ 1,137 towards the lease liabilities.

As of March 31, 2025 the lease liability amounted to $ 181,531 .

10 COMMITMENTS AND CONTINGENCIES

Company may be involved in certain legal proceedings that arise from time to time in the ordinary course of our business.

income tax contingencies, we record accruals for contingencies to the extent that our management concludes that the occurrence is probable

and that the related amounts of loss can be reasonably estimated.

Management believes the accompanying financial statements include all

provisions, of any, for any potential losses.

Legal expenses associated with the contingency are expensed as incurred.

September 13, 2024 Aegis Capital Corp.

commenced an action against the Company alleging that it had breached the provisions of a Placement

Agency Agreement (PPA) dated June 24, 2024 and that the Company was required to pay the plaintiff placement agent fees as a result of

the Company’s September 4, 2024 direct offering of $2.15 million with H.

The Company rejects the Plaintiff’s

claims that it is due the 7% plus expenses in the PPA and asserts that the PAA had been terminated on August 15, 2024 due to the plaintiff’s

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.

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

Institute of Science and Technology and Chung-Hsin Electric and Machinery Manufacturing Corp., Iveda Taiwan is required to provide

after-project services.

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

contract would have recourse.

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

the future as of March 31, 2025 is $ 334,281 .

10 SEGMENT INFORMATION

Company operates and manages its business as two reportable and operating segments.

The Company’s CODM reviews financial information

presented and decides how to allocate resources based on net income (loss).

Net income (loss) is used for evaluating financial performance.

segment expenses include salaries and payroll, stock based compensation, marketing, public company expenses, audit and accounting, consulting,

research and development, travel and entertainment, software subscription and other administrative expenses for the US and salaries and

payroll, insurance, rent, travel and entertainment, office supplies and postage, pension and other administrative expenses.

The following

table presents the significant segment expenses and other segment items regularly reviewed by our CODM.

SCHEDULE OF SEGMENT INFORMATION

Months Ended March 31, 2025

Months Ended March 31, 2024

of Goods Sold

and Payroll Expenses

and Entertainment

Company expenses

and Accounting

and Development

operating expenses

Operating Expenses

(Income) from Operations

( 1,331,879 )

Common Stock for Services

Non-controlling Interest

Comprehensive Loss

BALANCE AT September 30, 2023

( 1,282,752 )

Income and Other (Expenses), net

loss before Income Tax

$ ( 793,672 )

BALANCE AT December 31, 2023

$ ( 847,874 )

$ ( 1,258,251 )

Cost of Financing

Non-controlling Interest

$ ( 1,215,875 )

( 1,289,596 )

Comprehensive Loss

BALANCE AT March 31, 2024

( 1,215,875 )

due to operations in various geographic locations, we are susceptible to changes in national, regional, and local economic conditions,

demographic trends, consumer confidence in the economy, and discretionary spending priorities that may have a material adverse effect

on our future operations and results.

are required to collect certain taxes and fees from customers on behalf of government agencies and remit them back to the applicable

governmental agencies on a periodic basis.

The taxes and fees are legal assessments to the customer, for which we have a legal obligation

to act as a collection agent.

Because we do not retain the taxes and fees, we do not include such amounts in revenue.

We record a liability

when the amounts are collected and relieve the liability when payments are made to the applicable governmental agencies.

The Net Revenues for our significant geographic regions

are as follows:

SCHEDULE OF REVENUES BY GEOGRAPHIC REGIONS

For the Three

March 31, 2025

March 31, 2024

United States

Republic of China (Taiwan)

Total Consolidated

net assets (liabilities) for our significant geographic regions are as follows:

SCHEDULE OF NET ASSETS LIABILITIES BY GEOGRAPHIC REGIONS

Assets (Liabilities)

of China (Taiwan)

11 RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

financial statements for the three months ended March 31, 2024 have been restated.

to the original issuance of these financial statements, our audit committee and management determined the following:

following table presents the effect of the restatements of the Company’s previously issued balance sheet:

SCHEDULE OF RESTATEMENTS

Previously Reported

of March 31, 2024

Previously Reported

and Equipment, Net

and Other Payables

( 1,101,491 )

Accrued Expenses

( 1,289,308 )

Common Stock for Services

Stock Option Compensation

Non-controlling Interest

Comprehensive Loss

BALANCE AT June 30, 2024

Non-controlling

Other Comprehensive Income (Loss)

$ ( 49,049,993 )

1 unchanged sentence

$ ( 50,485,493 )

following table presents the effect of the restatements of the Company’s previously issued statement of operations

Previously Reported

the three months ended March 31, 2024

Previously Reported

and Administrative Expenses

and Development

Operating Expenses

Before Income Taxes

( 1,087,356 )

1 unchanged sentence

( 1,258,252 )

Common Stock Issued in September Offering

Pre-Funded Warrants

Cost of Financing

Reverse Split fractional shares

Non-controlling Interest

Comprehensive Loss

BALANCE AT September 30, 2024

( 1,118,700 )

1 unchanged sentence

( 1,289,596 )

loss attributable to Non-controlling Interest

loss attributable to Iveda Solutions, Inc.

( 1,108,198 )

1 unchanged sentence

( 1,289,596 )

accompanying Notes to Unaudited Condensed Consolidated Financial Statements

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

September 30, 2024

September 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

and Diluted Cost per Share

Weighted Average

Shares Outstanding

following table presents the effect of the restatements of the Company’s previously issued statement of stockholder’s equity

Stockholders’ Equity

March 31, 2024 as previously reported

$ ( 49,049,994

Correction of Prior

Period Adjustments

( 346,560 [1]

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

Stock Compensation Expense

Common Stock for Services

Changes in operating assets and liabilities

Accounts Receivable

Net Correction of JV consolidation

Software expensed to Research and Development

March 31, 2024 as restated

$ ( 50,485,493

Other Current Assets

Increase (Decrease) in Accounts and Other Payables

Net Cash Used in Operating Activities

following table presents the effect of the restatements of the Company’s previously issued statement of cashflows:

Previously Reported

the three months ended March 31, 2024

Previously Reported

$ ( 1,108,198 )

$ ( 1,289,596 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Intangible Asset

Purchase of Property and Equipment

Net Cash Used in Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES

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 DECREASE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS

Cash Provided by (Used in) Operating Activities

( 1,112,075 )

( 1,293,473 )

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.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

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

DISCLOSURE OF CASH FLOW INFORMATION

Interest Paid

Income Tax Paid

DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Common Stock issued for services

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 NATURE OF OPERATIONS

of Operations

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

While we still offer video surveillance technologies,

our core product line has evolved to include AI intelligent video search technology that provides true intelligence to any video surveillance

system and IoT (Internet of Things) devices and platforms.

Iveda also offers smart utility, smart sensors, gateways and trackers.

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

Our IvedaAI® intelligent

video search technology adds critical intelligence to normally passive video surveillance systems.

IvedaAI provides AI functions to any

IP camera and most popular network video recorders (NVR) and video management systems (VMS).

IvedaAI comes with an appliance or server,

preconfigured with multiple AI functions based on the end user requirements.

of Property and Equipment, Net

Cash Provided by (Used in) Investing Activities

periods before 2024, Management of the Company determined that the following:

[1] The Deferred Tax asset of $ 146,560

was no longer a valid tax difference.

The amount was recorded as an adjustment to accumulated deficit at December 31, 2022.

[2] The intercompany amount due to Iveda

Taiwan was understated by $ 200,000 related to a payment made on behalf of Iveda US by Iveda Taiwan.

the period ending March 31, 2024, Management of the Company determined the following:

[3] An adjustment for

related to expensing the research and development expense was needed related to activity in 2023.

The amount was recorded as a

reduction to assets and the associated expense was recorded to the statement of operations.

An adjustment for a total of $ 188,400

related to expensing the research and development expense versus being capitalized was needed related for the three months ended

March 31, 2024.

The amount was recorded as a reduction to assets and the associated expense was recorded to the statement of

[4] An adjustment for

for the year ended December 31, 2023 to expense its investment in Iveda Phils JV originally recorded as a consolidation ($ 7,002 net

loss for the three months ended March 31, 2024) but we have determined this investment should have been recorded as the equity

This effected Cash, Accounts and Other Payables, Joint Venture Non-Controlled Equity Portion, Accumulated Other

Comprehensive Income (Loss) and accumulated deficit.

12 SUBSEQUENT EVENTS

Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements

are available to be issued.

Any material events that occur between the balance sheet date and the date that the financial statements

were available for issuance are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions

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.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

appearing elsewhere in this Form 10-Q Quarterly Report.

Regarding Forward-Looking Information

Report on Form 10-Q Quarterly Report contains forward-looking statements that involve risks and uncertainties.

All statements other than

statements of historical fact contained in this Form 10-Q Quarterly Report, including statements regarding future events, our future

financial performance, business strategy, and plans and objectives for future operations, are forward-looking statements.

In many cases,

you can identify forward-looking statements by terminology such as “anticipates,” “believes,” “can,”

“continue,” “could,” “estimates,” “expects,” “intends,” “may,”

“plans,” “potential,” “predicts,” “should,” or “will” or the negative of

these terms or other comparable terminology.

Although we do not make forward-looking statements unless we believe we have a reasonable

basis for doing so, we cannot guarantee their accuracy.

These statements are only predictions and involve known and unknown risks, uncertainties,

and other factors, including the risks outlined under “Risk Factors”, “Liquidity and Capital Resources” with

respect to our ability to continue to generate cash from operations or new investment, or elsewhere in this Report on Form 10-Q Quarterly

Report or discussed in our consolidated financial statements for the year ended December 31, 2024, which may cause our or our industry’s

actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking

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

New risks emerge from time to time, and it is

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

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

offers smart city technologies globally, offering advanced AI-driven video surveillance solutions and a robust suite of Internet of Things

(IoT) platforms that power digital transformation for cities and commercial clients worldwide.

The smart cities market, as well as the

AI and IoT segments, are poised for significant growth in the coming years.

new report from Verified Market Research projects that the global smart city platforms market size will grow at a CAGR of 9% from 2026

to 2032, increasing from USD 208.8 billion to USD 416.1 billion.

Meanwhile, Fortune Business Insights reports that the global IoT market—valued

at USD 308.97 billion in 2020—expanded by 23.1% that year, substantially outpacing the average annual growth rate from 2017 to

Looking ahead, IoT is expected to surge from USD 381.30 billion in 2021 to USD 1,854.76 billion in 2028.

Additionally,

the International Data Corporation (IDC) projects that global spending on artificial intelligence will double from USD 50.1 billion in

2020 to over USD 110 billion in 2024.

These trends underscore the rising demand for connected solutions and highlight the promising future

of innovative technologies that enhance the safety and efficiency of urban environments.

With its cutting-edge products and global reach,

Iveda is uniquely positioned to lead this transformation, providing the advanced solutions that cities need to move forward smartly and

offers AI intelligent video search, smart utility, smart sensors, gateways, and trackers, and IoT platforms (Products).

consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level

or data center for centralized cloud model.

We combined hardware and artificial intelligence software for fast and efficient video search

for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera.

works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across

dozens to thousands of cameras in less than 1 second.

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

Instead of watching hours of video recording after-the-fact, users can set up alerts.

Search (No Database Required)

12 unchanged sentences

works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search

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

across dozens to thousands of cameras in less than 1 second.

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

8 unchanged sentences

Our smart devices

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

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

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

power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software

for monitoring and control purposes.

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

payment system.

power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA (supervisory

control and data acquisition) software for monitoring and control purposes.

This line of product includes smart power, water meter, smart

lighting controls systems, and smart payment system.

Cerebro is a software technology platform that integrates a multitude of disparate systems for central access and management of applications,

28 unchanged sentences

Iveda leverages infrastructure already available in most modern cities – Light

poles with power.

We equip existing poles with Utilus.

poles with power We equip existing poles with Utilus.

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

63 unchanged sentences

orthorectified service of imagery (2D/3D)

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

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

geographic data and analysis report

33 unchanged sentences

services quickly.

Historically,

we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and

We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety

of businesses and organizations.

While we previously only used off-the shelf camera systems from well-known camera brands, we now source

our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs.

We now have the capability

to provide IP cameras and NVRs based on customer specifications.

We still utilize ONVIF (Open Network Video Interface Forum) cameras,

which are a global standard for the interface of IP-based physical security products.

2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers

such as telecommunications companies, integrators and other technology resellers already providing services to an existing customer base.

Partnering with service providers that have an existing loyal subscriber base allows us to focus on servicing just a handful of our partners

and concentrating on our technology offering.

Service providers leverage their end-user infrastructure to sell, bill, and provide customer

service for Iveda’s product offering.

This business model provides dual revenue streams – one from hardware sales and the

other from monthly licensing fees.

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

buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City.

Iveda Taiwan combines security surveillance

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

Through Iveda Taiwan, we have access not only

to Asian markets but also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working

with a team of developers in Taiwan.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

April 30, 2011, we completed our acquisition of Sole Vision Technologies (fka MEGAsys and dba Iveda Taiwan), a company based in Taiwan.

We consolidate our financial statements with the financial statements of Iveda Taiwan.

All intercompany balances and transactions have

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, 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.

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

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

accepted in the United States of America.

preparation of 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

Actual results could differ from these estimates.

and Expense Recognition

Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers , and all

related appropriate guidance.

The Company recognizes revenue under the core principle to depict the transfer of control to its customers

in an amount reflecting the consideration to which it expects to be entitled.

In order to achieve that core principle, the Company applies

the following five-step approach:

(1) identify the contract with a customer, (2) identify the performance obligations in the contract,

(3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize

revenue when a performance obligation is satisfied.

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

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

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

As part of its consideration for the contract,

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

For each contract, the Company

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

performance obligations.

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

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

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

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

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

The product price

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

if sold to a similar customer in similar circumstances.

Revenue is recognized when control of the product is transferred to the customer

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

Further in determining

whether control has been transferred, the Company considers if there is a present right to payment and legal title, along with risks

and rewards of ownership having transferred to the customer.

Customers do not have a right to return the product other than for warranty

reasons for which they would only receive repair services or replacement product.

The Company has also elected the practical expedient

under ASC 340-40-25-4 to expense commissions for product sales when incurred as the amortization period of the commission asset the Company

would have otherwise recognized is less than one year.

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

majority of Iveda Taiwan sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality

or a commercial customer) through its sales force, which is composed of its employees.

Revenue is recorded when the equipment is

shipped to the end customer and charged for service when installation or maintenance work is performed.

from fixed-price equipment installation contracts (project sales) are recognized on the percentage-of-completion method.

The percentage

completed is measured by the percentage of costs incurred to date to estimated total costs for each contract.

This method is used because

management considers expended costs to be the best available measure of progress on these contracts.

Because of inherent uncertainties

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

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

General and administrative

costs are charged to expense as incurred.

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

losses are determined.

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

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

Changes in estimated job profitability resulting from job performance,

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

current period.

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

Claims are included in revenues

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

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.

The revenues are recorded monthly, if

the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective

Comprehensive

loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.

other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income

are required to be reported in a financial statement that is presented with the same prominence as other financial statements.

component of other comprehensive income is the foreign currency translation adjustment.

Concentrations

instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents and trade

accounts receivable.

Substantially

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 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 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 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 %.

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 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 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.

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

new proposed projects.

Current Assets

OF OTHER CURRENT ASSETS

September 30, 2024

December 31, 2023

Prepaid Expenses

Advances to Suppliers

Tender Deposits

Other Current Assets

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

and equipment are stated at cost.

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

to seven years .

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

Depreciation expense for the three

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

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

bid is accepted.

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

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

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

Valuation allowances are established

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

than not, will be realized.

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

and liabilities.

During the 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.

federal income tax as well as state income tax.

income tax returns are subject to review and examination by federal, state, and local authorities.

tax returns for the

years 2020 to 2023 are open to examination by federal, local, and state authorities.

Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance.

Our Taiwan tax return for the years 2020

to 2023 are open to examination by the Taiwan Ministry of Finance.

cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment.

and Other Payables

OF ACCOUNTS AND OTHER PAYABLES

September 30, 2024

December 31, 2023

Accounts Payable

Accrued Expenses

Deferred Revenue, Customer Deposits, & Taxes Payable

Accounts and Other Payables Total

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

Non-Controlling

Non-controlling

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.

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.

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 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 September

30, 2024 and December 31, 2023.

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

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

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.

The operations conducted and the customer bases located in the foreign countries are

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

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

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

September 30,

United States

Republic of China (Taiwan)

due to operations in various geographic locations, we are susceptible to changes in national, regional, and local economic conditions,

demographic trends, consumer confidence in the economy, and discretionary spending priorities that may have a material adverse effect

on our future operations and results.

are required to collect certain taxes and fees from customers on behalf of government agencies and remit them back to the applicable

governmental agencies on a periodic basis.

The taxes and fees are legal assessments to the customer, for which we have a legal obligation

to act as a collection agent.

Because we do not retain the taxes and fees, we do not include such amounts in revenue.

We record a liability

when the amounts are collected and relieve the liability when payments are made to the applicable governmental agencies.

Reclassification

amounts in 2023 have been reclassified to conform to the 2024 presentation.

Accounting Standards

Instruments - Credit Losses

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

Measurement of Credit losses on financial instruments later codified as Accounting Standard codification (“ASC 326”),

effective January 1, 2023, using a modified retrospective approach.

The guidance introduces a revised approach to the recognition and

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

There was no significant

impact on the date of adoption of ASC 326.

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

The Company’s primary

allowance for credit losses is the allowance for doubtful accounts.

The allowance for doubtful accounts reduces the Account receivable

balance to the estimated net realizable value.

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

a combination of factors.

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

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

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

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

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.

3 SHORT-TERM AND LONG-TERM DEBT

short-term debt balances were as follows:

OF SHORT-TERM DEBT

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.

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

debt balances were as follows:

OF LONG-TERM DEBT

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 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:

Amount Maturity

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 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

are authorized to issue up to 4,687,500

shares of common stock, par value $ 0.00001

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.

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.

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 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 44,891 options outstanding under the 2010 Option Plan.

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

2020 Plan (the “2020 Plan”).

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 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 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,

as amended (the “Code”), or as options not qualified under Section 422 of the Code.

All options are issued with an exercise

price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors.

stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m)

Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m).

the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant.

have also granted non-qualified stock options to employees and contractors.

All non-qualified options are generally issued with an

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

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

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

to four years.

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

alternate terms are specified at grant.

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

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

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

(Republic of China) Corporate Tax

Technologies, Inc.

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

applicable corporate income tax rate is 17%.

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

retention tax on undistributed earnings for the prior year.

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

the end of the fiscal year.

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

tax classified as value-added type (“VAT”) which will be reported to the Ministry of Finance (“MOF”) on a bi-monthly

Since the VAT and TCIT are accounted for on a VAT tax basis that recorded all sales on business tax on a VAT tax reporting system,

the Company is bound to report the TCIT according to the MOF prescribed tax reporting rules.

Under the VAT tax reporting system, sales

cut-off did not take the accrual base but rather on a VAT taxable reporting basis.

Therefore, when the company adopted US GAAP on accrual

basis, the sales cut-off TCIT timing difference which derived from the VAT reporting system will create a temporary sales cut-off timing

difference and this difference is reflected in the deferred tax assets or liabilities calculations.

9 EARNINGS (LOSS) PER SHARE

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

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

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

We had net losses for the 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.

Accordingly, all options, warrants,

and shares potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the three

and nine months ended September 30, 2024 and 2023.

OF EARNINGS PER SHARE BASIC AND DILUTED

September 30, 2024

September 30, 2023

Basic and Diluted EPS

$ ( 555,011 )

$ ( 828,818 )

Weighted Average Shares

Basic and Diluted Loss Per Share

September 30, 2024

September 30, 2023

Basic and Diluted EPS

$ ( 2,157,487 )

$ ( 2,136,453 )

Weighted Average Shares

Basic and Diluted Loss Per Share

10 COMMITMENTS AND CONTINGENCIES

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

Electric and Machinery Manufacturing Corp., Iveda Taiwan is required to provide after-project services.

If Iveda Taiwan fails to provide

these after-project services in the future, other parties of the related contract would have recourse.

The financial exposure to Iveda

Taiwan in the event of failure to provide after- project services in the future as of 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

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

The Company recognizes a liability for such

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

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

are no such cases as of September 30, 2024.

11 SUBSEQUENT EVENTS

Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements

are available to be issued.

Any material events that occur between the balance sheet date and the date that the financial statements

were available for issuance are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions

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.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

appearing elsewhere in this Form 10-Q Quarterly Report.

Regarding Forward-Looking Information

Report on Form 10-Q Quarterly Report contains forward-looking statements that involve risks and uncertainties.

All statements other than

statements of historical fact contained in this Form 10-Q Quarterly Report, including statements regarding future events, our future

financial performance, business strategy, and plans and objectives for future operations, are forward-looking statements.

In many cases,

you can identify forward-looking statements by terminology such as “anticipates,” “believes,” “can,”

“continue,” “could,” “estimates,” “expects,” “intends,” “may,”

“plans,” “potential,” “predicts,” “should,” or “will” or the negative of

these terms or other comparable terminology.

Although we do not make forward-looking statements unless we believe we have a reasonable

basis for doing so, we cannot guarantee their accuracy.

These statements are only predictions and involve known and unknown risks, uncertainties,

and other factors, including the risks outlined under “Risk Factors”, “Liquidity and Capital Resources” with

respect to our ability to continue to generate cash from operations or new investment, or elsewhere in this Report on Form 10-Q Quarterly

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

actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these forward-looking

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

New risks emerge from time to time, and it is

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

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

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

While we still offer video surveillance technologies,

our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance

system and IoT (Internet of Things) devices and platforms.

Our evolution is in response to digital transformation demands from many cities

and organizations across the globe.

Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video

surveillance systems.

IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management

systems (VMS).

IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements.

Search (No Database Required)

Recognition (from a Database)

Plate Recognition (100+ Countries), includes make and model

Health Analytics (Facemask Detection)

and Barcode Detection

Detection – Vehicle/Person wrong direction detection

Vehicle/Person

Loitering Detection

Parking Detection

consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level

or data center for centralized cloud model.

We combined hardware and artificial intelligence software for fast and efficient video search

for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera.

works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across

dozens to thousands of cameras in less than one second.

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

Instead of watching hours of video recording after-the-fact, users can set up alerts.

offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and

patient/elder care.

Our gateway and station serve as the main hub for sensors and devices in any given area.

They are equipped with high-level

communication protocols such as Zigbee, WiFi, Bluetooth, and USB.

They connect to the Internet via Ethernet or cellular data network.

We provide IoT platforms that enable centralized device management and push digital services on a massive scale.

Our smart devices include

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

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

power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software

for monitoring and control purposes.

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

payment system.

Cerebro manages all the components of our smart power technology including statistics on energy consumption.

Cerebro is a software platform

designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive

user interface.

roadmap includes dashboard for all of Iveda’s platforms for central management of all devices.

Cerebro is system agnostic and will

support cross-platform interoperability.

The common unified user interface will allow remote control of platforms, sensors and subsystems

throughout an entire environment.

This integration and unification of all subsystems enable acquisition and analysis of all information

on one central command center, allowing comprehensive, effective, and overall management and protection of a city.

Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole

The Utilus network uses WiFi, 4G and 5G small cell capabilities, and other wireless protocols to provide distributed video

surveillance with AI video search technology and remote management of local devices such as trackers, water meters, electrical meters,

valves, circuit breakers and sensors.

the last few years, the smart city concept has been a hot topic among cities across the globe.

With little to no human interaction, technology

increases efficiency, expedites decision making, and reduces response time.

Dwindling public safety budgets and resources has necessitated

the transformation.

More and more municipalities are using next-generation technologies to improve the safety and security of its citizens.

Our response is our complete suite of IoT technologies, including AI intelligent video search technology, smart sensors, tracking devices,

video surveillance systems, and smart power.

license our platform and sell IoT hardware to service providers such as telecommunications companies, integrators and other technology

resellers already providing services to an existing customer base.

Partnering with service providers that have an existing loyal customer

base allows us to focus on servicing just a handful of our partners and concentrating on our technology offering.

Service providers leverage

their end-user infrastructure to sell, bill, and provide customer service for Iveda’s product offering.

This business model provides

dual revenue streams – one from hardware sales and the other from monthly licensing fees.

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

buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City.

Iveda Taiwan combines security surveillance

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

Through Iveda Taiwan, we have access not only

to Asian markets but also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working

with a team of developers in Taiwan.

April 2011, we completed our acquisition of Iveda Taiwan, a company founded in 1998 by a group of sales and research and development

professionals from Taiwan Panasonic Company.

Iveda Taiwan, our subsidiary in Taiwan, specializes in deploying new, and integrating existing,

video surveillance systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and

Safe City initiatives in Taiwan and other neighboring countries.

Iveda Taiwan combines security surveillance products, software, and

services to provide integrated security solutions to the end user.

Through Iveda Taiwan, we have access not only to Asian markets but

also to Asian manufacturers and engineering expertise.

Iveda Taiwan is our research and development arm, working with a team of developers

and managing our relationship with the Industrial Technology Research Institute (“ITRI”) in Taiwan.

Iveda Taiwan also houses

the application engineering team that supports Sentir implementation for our service provider customers in Asia.

The Company depends

on Iveda Taiwan as the majority of the company’s revenues have come from Iveda Taiwan since we acquired them in April 2011.

the years ended December 31, 2023 and 2022, Iveda Taiwan’s operations accounted for 93% and 71% of our total revenue, respectively.

acquisition of Iveda Taiwan provided the following benefits to our business:

established presence and credibility in Asia and access to the Asian market.

Relationships

in Asia for cost-effective research and development of new product offerings and securing the best pricing for end user devices.

of products directly using Iveda Taiwan’s product sourcing expertise to enhance our custom integration capabilities.

to the global distribution potential for our products and services.

November 2012, we signed a cooperation agreement with ITRI, a research and development organization based in Taiwan.

Together with ITRI,

we have developed cloud-video services.

Pursuant to the cooperation agreement, we licensed, through our subsidiary, Sole-Vision Technologies,

Inc., the right to use U.S.

8,719,442 (as well as its Taiwanese and Chinese counterparts) with respect to the development

of cloud-video technologies.

June and August 2014, in collaboration with our local partner in the Philippines, we shipped our ZEE cloud plug-and-play cameras for

delivery to the Philippine Long Distance Telephone Company (“PLDT”) for distribution to its customers with a cloud video

surveillance service offering, utilizing our Sentir platform.

is an advanced IoT-based solution that transforms the way liquid levels are monitored and managed.

With two unique IoT sensors—a

standard cap valve sensor designed for 200-liter drums and a patent- pending external sensor that fits various container sizes—LevelNOW

provides real-time data to ensure efficiency, safety, and cost savings.

Its user-friendly AI-backed platform optimizes operations for

industries that rely on large fluid containers, such as oil, gas, and industrial storage.

Know exactly when customers are running low

and deploy fleets in real time to refill your liquids.

business model in the US is to primarily sell hardware and license our software to organizations already providing services to an existing

customer base and facilitating hardware acquisition through third party partners.

This business model provides dual revenue streams –

one from surveillance camera and analytics hardware sales to the service providers and the other from software licensing fees.

Taiwan continues to service its enterprise and government clients on a per-project basis.

Some of its customers include Chunghwa Telecom,

the Taiwan Stock Exchange, New Taipei City Police Department, Chicony Power Technology Co, Ltd.

and Taiwan Energy Systems.

Accounting Policies and Estimates

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

million (84% of revenue;

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 $1.01 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

of Operations for the Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 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 March 31, 2025

Three Months Ended March 31, 2024

of Three Months ended March 31, 2025 and 2024

Cost of Goods Sold

Operating Expenses

Total Operating Expenses

Income (Loss) from Operations

Interest Income and Other (Expenses), net

Net Income (Loss) before Income Tax

$ (1,258,251 )

$ (1,215,875 )

Income Tax Expense

$ (1,289,596 )

$ (1,215,875 )

increase in revenue for the three months ended March 31, 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.

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 March 31, 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.

from Operations

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 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.

from Operations

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.

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 increased revenues and related gross margins and reduction in operating expenses for the three

months ended March 31, 2025 compared to the same period in 2024.

and Capital Resources

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

of March 31, 2025, we had cash and cash equivalents of $2.5 million compared to $2.7 million as of December 31, 2024.

This decrease in

our cash and cash equivalents for the three months ended March 31, 2025 is related to the operating losses during the three months ended

March 31, 2025 offset by the collection of accounts receivables.

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

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

cash used in operating activities during the three months ended March 31, 2025 was ($0.1) million compared to ($1.1) million net cash

used during the three months ended March 31, 2024.

Net cash used in operating activities for the three months ended March 31, 2025 consisted

primarily of the net loss of ($1.0) million.

Other offsetting factors for the three months ended March 31, 2025 included $0.5 million

cash provided from the collection of accounts receivable.

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

2024 consisted primarily of the net loss of ($1.3) million.

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 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.

cash used in investing activities for the three months ended March 31, 2025 and 2024 were negligible.

cash provided by financing activities for the three months ended March 31, 2025 were minimal compared with $0.5 million provided during

the three months ended March 31, 2024.

Net cash provided by financing activities in 2024 of $0.5 million proceeds from long term loans

in Taiwan during the three months ended March 31, 2024.

have experienced significant operating losses since our inception.

24 unchanged sentences

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

Deposit Insurance Corporation”) with maximum coverage of NTD $3 million.

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

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

15 unchanged sentences

For our U.S.-based segment,

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.

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

Taiwan-based segment, we set up no doubtful accounts receivable allowances for the nine months ended March 31, 2025 and year ended December

We deem the rest of our accounts receivable to be collectible based on certain factors, including the nature of the customer

contracts and past experience with similar customers.

Delinquent receivables are written off based on individual credit valuation and

specific circumstances of the customer, and we generally do not charge interest on past due receivables.

the periods for which financial information is presented, we do not believe that the current levels of inflation in the United States

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