What changed in this filing

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Item 1. Financial Statements

2025-08-14 compared with 2025-05-13 · 454 added, 341 removed, 741 unchanged (52% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

and Cash Equivalents

Receivable, Net

Cost of Goods

Current Assets

June 30, 2025

December 31, 2024

CURRENT ASSETS

and Equipment, Net

of Use Asset, Net

AND STOCKHOLDERS’ EQUITY

and Other Payables

Portion of Long-Term Debt

Portion of Lease Liability

Cash and Cash Equivalents

Restricted Cash

Accounts Receivable, Net

Deferred Cost of Goods

Inventory, Net

Other Current Assets

Total Current Assets

Property and Equipment, Net

Right of Use Asset, Net

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

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;

Accounts and Other Payables

Short Term Debt

Current Portion of Long-Term Debt

Current Portion of Lease Liability

Total Current Liabilities

Long Term Debt

Long Term Lease Liability, Net of Current Portion

Total Liabilities

STOCKHOLDERS’ EQUITY

Preferred Stock, $ 0.00001 par value;

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

Common Stock, $ 0.00001 par value;

300,000,000 shares authorized;

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

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

Additional Paid-In Capital

Accumulated Other Comprehensive Loss

Accumulated Deficit

( 54,534,638 )

( 53,176,717 )

Stockholders’ Equity

Liabilities and Stockholders’ Equity

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS

2025 (Unaudited)

2024 (Restated)

& Administrative

& Development

For the Three

June 30, 2025

For the Three

June 30, 2024

June 30, 2025

June 30, 2024

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

Service Revenue

TOTAL REVENUE

COST OF REVENUE

OPERATING EXPENSES

FROM OPERATIONS

General & Administrative

Research & Development

Total Operating Expenses

LOSS FROM OPERATIONS

( 1,367,918 )

INCOME (EXPENSE)

Miscellaneous

Income (Expense)

Other Income (Expense), Net

BEFORE INCOME TAXES

( 1,940,274 )

OTHER INCOME (EXPENSE)

Miscellaneous Income (Expense)

Interest Income

Interest Expense

Total Other Income (Expense), Net

LOSS BEFORE INCOME TAXES

$ ( 534,471 )

$ ( 597,730 )

$ ( 1,328,143 )

$ ( 1,855,981 )

PROVISION FOR INCOME TAXES

1 unchanged sentence

$ ( 598,981 )

AND DILUTED LOSS PER SHARE

AVERAGE SHARES

$ ( 1,357,921 )

$ ( 1,888,576 )

BASIC AND DILUTED LOSS PER SHARE

WEIGHTED AVERAGE SHARES

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF

COMPREHENSIVE

March 31, 2025

March 31, 2024

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

For the Three Months ended June 30, 2025

For the Three Months ended June 30, 2024

For the Six Months ended June 30, 2025

For the Six Months ended June 30, 2024

$ ( 564,249 )

$ ( 598,981 )

$ ( 1,357,921 )

$ ( 1,888,576 )

Other Comprehensive Loss

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

Comprehensive Loss

in Equity Adjustment from Foreign Currency Translation, Net of Tax

Comprehensive

$ ( 443,925 )

$ ( 619,999 )

$ ( 1,248,477 )

$ ( 1,944,185 )

accompanying Notes to Unaudited Condensed Consolidated Financial Statements .

3 unchanged sentences

Stockholders’

AT December 31, 2023

BALANCE AT December 31, 2023

$ ( 49,195,897 )

1 unchanged sentence

Cost of Financing

Loss, Restated

( 1,289,596 )

Comprehensive

AT March 31, 2024, Restated

Comprehensive Loss

BALANCE AT March 31, 2024

$ ( 50,485,493 )

$ ( 256,009 )

AT December 31, 2024

Common Stock for Services

Stock Compensation Expense

Net Loss, Restated

Comprehensive Loss

BALANCE AT June 30, 2024

$ ( 51,084,474 )

$ ( 277,027 )

BALANCE AT December 31, 2024

$ ( 53,176,717 )

$ ( 280,209 )

Comprehensive

AT March 31, 2025

Comprehensive Loss

BALANCE AT March 31, 2025

$ ( 53,970,389 )

2 unchanged sentences

$ ( 291,089 )

Sale of Common Stock

Comprehensive Loss

BALANCE AT June 30, 2025

$ ( 54,534,638 )

$ ( 170,765 )

$ ( 54,534,638 )

$ ( 170,765 )

accompanying Notes to Unaudited Condensed Consolidated Financial Statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

FLOWS FROM OPERATING ACTIVITIES

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

June 30, 2025

June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES

$ ( 1,357,921 )

$ ( 1,888,576 )

to Reconcile Net Loss to Net Cash Used in Operating Activities

Adjustments 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

Stock Compensation Expense

Common Stock for Services

Changes in operating assets and liabilities

Accounts Receivable

Deferred Cost of Goods

Right of Use Asset

Other Current Assets

Increase (Decrease) in Accounts and Other Payables

Lease Liability

Net Cash Used in Operating Activities

( 1,458,074 )

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

( 2,293,174 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property and Equipment

Net Cash Used in Investing Activities

CASH FLOWS FROM FINANCING ACTIVITIES

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

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

( 1,031,866 )

( 1,889,496 )

Cash and Cash Equivalents- Beginning of Period

CASH AND CASH EQUIVALENTS - END OF PERIOD

accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

1 unchanged sentence

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

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

June 30, 2025

June 30, 2024

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest Paid

Income Tax Paid

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

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

19 unchanged sentences

been eliminated in consolidation.

of Presentation

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

with accounting principles generally accepted in the U.S.

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

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

Accordingly, they

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

However, such information reflects

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

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

Results shown for interim periods are not necessarily

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

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

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

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

These financial

statements should be read in conjunction with that report.

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

1 unchanged sentence

The Company experienced net losses and

negative operating cash flows during the 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.

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

These factors

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

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

Management does not expect that its current liquidity will support

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

As a result, management has concluded that there

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

The accompanying consolidated financial statements

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

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

The Company’s independent registered

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

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

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

87 unchanged sentences

SCHEDULE OF DISAGGREGATION OF REVENUE

For the Three Months Ended March 31,

Municipalities

For the three months ended June 30, 2025

For three months ended June 30, 2024

For the six months ended June 30, 2025

For the six months ended June 30, 2024

Net Sales Source

Commercial Enterprises

Municipalities

Taiwan Government

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

4 unchanged sentences

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).

At times, amounts on deposit in

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

Deposits in Taiwan financial institutions are insured by CDIC

(Central Deposit Insurance Corporation) with maximum coverage of 3

million New Taiwan Dollar (NTD).

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

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

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

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

and Technology with 31 %

and 2) Taiwan Stock Exchange with 21 %

(both Taiwan companies).

Revenue from three customers out of 70 total customers represented approximately 87% of total revenue for

the three months ended June 30, 2024.

These specific customers were 1) HWACOM Systems Inc.

(Taiwan company) with 39%, 2) Chunghwa

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

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

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

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

(all Taiwan companies).

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

Although we perform periodic

evaluations of our customers’ credit and financial condition, we do not require collateral in exchange for our products and services

provided on credit.

These customers are longtime customers, and we don’t expect any problem with the collectability of these accounts

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

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

exchange for our products and services provided on credit.

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

problem with the collectability of these accounts receivable.

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

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

We had net losses for the six months ended June 30, 2025 and 2024 and the effect of including dilutive securities in the

earnings per common share would have been anti-dilutive for the purpose of calculating EPS.

Accordingly, all options, warrants, and shares

potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the periods ended June

30, 2025 and 2024.

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

securities would have had an anti-dilutive effect.

1 unchanged sentence

OF ANTI-DILUTIVE SECURITIES

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

and Cash Equivalents

9 unchanged sentences

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

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

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

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.

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.

Delinquent receivables are written off based

on individual credit valuation and specific circumstances of the customer.

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

uncollectible accounts was deemed necessary.

Cost of Goods

7 unchanged sentences

There was no allowance for slow-moving

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

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

and Equipment

3 unchanged sentences

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

Depreciation expense for the three

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

Depreciation expense for the six

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

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

7 unchanged sentences

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

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

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

Equity Method Investment

The Company accounts for investments

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

control, using the equity method of accounting.

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

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

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

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

may not be recoverable.

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

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

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

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

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

recorded an impairment charge of $ 180,000 .

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

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

We are subject U.S.

federal income and state income

taxes, as well as Taiwan income taxes.

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

related to our Taiwan operations.

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.

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.

4 unchanged sentences

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.

28 unchanged sentences

its own assumptions.

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

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

and December 31, 2024.

24 unchanged sentences

2 Accounts and Other Payables

ACCOUNTS AND OTHER PAYABLES

SCHEDULE OF ACCOUNTS AND OTHER PAYABLES

Revenue and Customer Deposits

and Other Payables

June 30, 2025

December 31, 2024

Accounts Payable

Accrued Expenses

Customer Deposits

Accounts and Other Payables

3 SHORT-TERM AND LONG-TERM DEBT

1 unchanged sentence

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.

June 30, 2025

December 31, 2024

Loan 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.

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

Due in December 2025.

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

Due in November 2025.

Balance at end of period

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

Commercial Bank short term loan.

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

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

Current Portion of Long-term debt

Balance at end of period

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

38 unchanged sentences

for any of our securities.

7 STOCK OPTION PLANS AND WARRANTS

6 STOCK OPTION PLANS

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

8 unchanged sentences

The 2010 Option Plan expired on January 18, 2020.

As of March 31, 2025 there

As of June 30, 2025 there

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

2 unchanged sentences

2020 Plan (the “2020 Plan”).

The 2020 Plan has a maximum of 156,250

The 2020 Plan had 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.

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).

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.

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

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

16 unchanged sentences

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

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

option transactions during six months ended June 30, 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:

June 30, 2025

Weighted-Average

Exercise Price

Outstanding at Beginning of Period

Forfeited or Cancelled

Outstanding at End of Period

Options Exercisable at Period-End

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

or based on a Black-Scholes valuation model.

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

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

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

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

Options Outstanding

Options Exercisable

Exercise Prices

Outstanding at

June 30, 2025

Exercise Price

Exercisable at

June 30, 2025

Exercise Price

1.43 - 142.08

1 unchanged sentence

assumptions used for options granted.

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

OF WEIGHTED-AVERAGE ASSUMPTIONS

Expected Life

Expected Volatility

Risk-Free Interest Rate

NOTE 7 WARRANTS

transactions during the six months ended June 30, 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

For the six months ended June 30, 2025

Weighted-Average

Fair Value of Warrants Granted During the Period

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

Exercise Price

Outstanding at Beginning of Period

Forfeited or Cancelled

Outstanding at End of Period

Warrant Exercisable at Period-End

Weighted-Average Fair Value of Warrants Granted During the Period

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

SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE

Warrants Outstanding

Warrants Exercisable

Exercise Prices

Outstanding at

June 30, 2025

Average Remaining Contractual

Exercise Price

Exercisable at

June 30, 2025

Exercise Price

3.44 -$ 85.12

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.

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

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

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.

Right-of-use 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.

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 .

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

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

During the period ended

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

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

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

the lease liabilities.

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

9 COMMITMENTS AND CONTINGENCIES

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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 .

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

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

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

30, 2025 is $ 396,133 .

10 SEGMENT INFORMATION

3 unchanged sentences

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.

segment expenses include salaries and payroll, 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, rent, travel and

entertainment, 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

Three Months Ended June 30, 2025

Three Months Ended June 30, 2024

Cost of Goods Sold

Operating Expenses

Salaries and Payroll Expenses

Travel and Entertainment

Public Company expenses

Audit and Accounting

Research and Development

Other operating expenses

Total Operating Expenses

Loss (Income) from Operations

Interest Income and Other (Expenses), net

Net loss before Income Tax

Income Tax Expense

$ ( 564,249 )

$ ( 726,111 )

$ ( 598,981 )

$ ( 918,997 )

Six Months Ended June 30, 2025

Six Months Ended June 30, 2024

Cost of Goods Sold

Operating Expenses

(Income) from Operations

Salaries and Payroll Expenses

Travel and Entertainment

Public Company expenses

Audit and Accounting

Research and Development

Other operating expenses

Total Operating Expenses

Loss (Income) from Operations

( 1,367,918 )

( 1,611,587 )

Income and Other (Expenses), net

loss before Income Tax

( 1,940,274 )

( 2,208,563 )

Interest Income and Other (Expenses), net

Net loss before Income Tax

( 1,328,143 )

2 unchanged sentences

( 2,134,872 )

Income Tax Expense

$ ( 1,357,921 )

$ ( 1,573,985 )

$ ( 1,888,576 )

$ ( 2,134,872 )

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

8 unchanged sentences

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:

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

Six months ended

June 30, 2025

June 30, 2024

United States

3 unchanged sentences

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 )

Non-controlling

Other Comprehensive Income (Loss)

$ ( 49,049,993 )

$ ( 1,435,500

$ ( 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 )

( 170,896 [3]

( 1,258,252 )

( 1,118,700 )

( 170,896 [3]

( 1,289,596 )

loss attributable to Non-controlling Interest

loss attributable to Iveda Solutions, Inc.

( 1,108,198 )

( 181,398 [3]

( 1,289,596 )

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]

Net Correction of JV consolidation

Software expensed to Research and Development

March 31, 2024 as restated

$ ( 50,485,493

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 Provided by (Used in) Operating Activities

( 1,112,075 )

( 1,293,473 )

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.

June 30, 2025

December 31, 2024

Net Assets (Liabilities)

June 30, 2025

December 31, 2024

United States

Republic of China (Taiwan)

Total Consolidated

11 SUBSEQUENT EVENTS

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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 March 31, 2025 Compared with the Three Months Ended March 31, 2024

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

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

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

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

of Three Months ended March 31, 2025 and 2024

Three Months Ended

June 30, 2025

Three Months Ended

June 30, 2024

Comparison of Three Months ended

June 30, 2025 and 2024

Cost of Goods Sold

Operating Expenses

Salaries and Payroll Expenses

Travel and Entertainment

Public Company expenses

Audit and Accounting

Research and Development

Other operating expenses

Total Operating Expenses

Income (Loss) from Operations

Loss (Income) from Operations

Interest Income and Other (Expenses), net

Net Income (Loss) before Income Tax

Net loss before Income Tax

Income Tax Expense

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

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

sales in the US as distributor revenues increase.

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

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

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

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

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

same period in 2024.

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

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

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

of Six Months ended

June 30, 2025 and 2024

of Goods Sold

and Payroll Expenses

and Entertainment

Company expenses

and Accounting

and Development

operating expenses

Operating Expenses

(Income) from Operations

Income and Other (Expenses), net

loss before Income Tax

$ (1,357,920 )

$ (1,573,985 )

Income Tax Expense

$ (1,888,576 )

$ (2,134,872 )

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.

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

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

through its distributors.

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

net decrease in operating expenses in the 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.

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

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

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.

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

period in 2024.

and Capital Resources

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

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

This decrease in

our cash and cash equivalents for the 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.

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.

our cash and cash equivalents for the six months ended June 30, 2025 is related to the operating losses during the six months ended June

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

cash used in operating activities during the six months ended June 30, 2025 was ($1.5) million compared to ($2.3) million net cash used

during the six months ended June 30, 2024.

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

of the net loss of ($1.4) million.

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

the net loss of ($1.9) million.

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

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

the six months ended June 30, 2024.

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

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

have experienced significant operating losses since our inception.

25 unchanged sentences

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

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

of the CDIC insurance limit.

At times, amounts on deposit in Taiwan

may be in excess of the CDIC insurance limit.

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

13 unchanged sentences

For our U.S.-based segment,

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.

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

For our Taiwan-based

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

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

and past experience with similar customers.

Delinquent receivables are written off based on individual credit valuation and specific

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

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