招股說明書 附錄8 (於 2022年8月30日生效的招股說明書) |
根據第 424(b)(3) 條條款提交 登記編號333-267029 |
1,110,000 普通股股份
warrants 可購買高達3,289,474
普通股股份
預先資助 warrants 購買最多
2,189,474 普通股股份
普通 股票
本 招股說明書補充文件補充並修訂了日期為2022年8月23日、於2022年8月30日生效的招股說明書（以下稱「招股說明書」）， 涉及購買Iveda Solutions, Inc. 3,289,474股普通股的warrants及購買Iveda Solutions, Inc. 2,189,474股普通股的預先資助warrants（以下稱「公司」）的招股說明書中列明的股東。
本招股說明書已提交，以包括截至季度末我們在10-Q表格中提供的信息 九月 30, 2024，由公司在證券交易委員會提交的 11月 14, 2024 （即“10-Q表格”）。 附上了10-Q表格。
本 說明書補充文件若沒有與說明書一併提供，則不完整，並且不得發送或使用，除非涉及說明書及其任何補充資料和修訂。這份說明書補充文件應與說明書一同閱讀，說明書將與此說明書補充文件一同提供。這份說明書補充文件的內容以說明書為準，除非該說明書補充文件中的資訊更新或取代了說明書中的資訊，包括任何補充資料和修訂。
請參閱 「風險因素」從招股章程第5頁開始，了解您在購買我們普通股股份之前應考慮的因素。
證券交易委員會或任何其他監管機構均未批准或否決這些證券，也未對招股說明書的準確性或充分性進行審查。任何相反陳述均屬犯罪。
本招股說明書補充的日期為 11月19日， 2024
美國
證券交易委員會 及交易所
華盛頓特區，20549
表格 10-Q
☒ 根據證監會第13條或第15(d)條進行的季度報告。
交易所 1934年證券交易法案
截至2024年9月30日的季度期間
或
☐ 根據證券交易法第13或15(d)條的過渡報告
交易所 1934年證券交易法案
在過渡期間從 __________ 到 ____________
委員會 檔案編號000-53285
(根據公司章程所述的註冊人的正確名稱)
| 內華達 | 20-2222203 | |
| （州或其他管轄區 | （美國國稅局雇主識別號碼） | |
| 註冊或組織） | 識別號碼） | |
| 1744 小單 Val Vista, Suite 213 | ||
| Mesa, 亞利桑那 | 85204 | |
| （總執行辦公室地址） | （郵政編碼） |
申報人的電話號碼，包括區號： (480) 307-8700
根據該法案第12(b)條條款註冊的證券：無
證券 根據法案第12(g)條登記的：普通股，面值每股$0.00001
請表示核對符號，即該登記人（1）是否已在過去12個月內（或該登記人被要求提交此類報告的更短期間內）依據1934年交易所法第13或15(d)條的規定提交了所有報告，及（2）在過去90天內是否已受到此類報告要求的約束。是 ☒ 否 ☐
請以勾選的方式指明註冊者是否已電子提交並在其公司網站上發布（如有）在過去12個月內根據規則405的要求提交並發布的每個互動數據檔案（或在註冊者被要求提交和發布這些檔案的較短期間內）。是 ☒ 否 ☐
請勾選表明登記人是否為大型加速遞交人、快速遞交人、非加速遞交人或較小的報告公司。請參閱《交易所法》第120億2條中對「大型加速遞交人」、「快速遞交人」和「較小的報告公司」的定義。（勾選一個）:
| 大型加速文件申報者 ☐ | 加速申報者 ☐ | |
| 非加速提交者 ☒ | 較小型報告公司 ☒ | |
| 新興成長公司 ☐ |
若屬新興成長公司，則請在適用於依據第13(a)款擬定的任何新或修訂財務會計準則時，打勾表示註冊人已選擇不使用過度過渡期遵守該準則。 ☐
請以勾選的方式指示登記者是否為空殼公司（根據法案第120億2條的定義）：是 ☐ 否 ☒
| 每個類別的標題 | 交易標誌 | 在哪個交易所上市的名字 | ||
| 普通股，每股0.00001美元標的價值。 | IVDA | 納斯達克股票市場有限責任公司 | ||
| 普通股票購買權證 | IVDAW | 納斯達克股票市場有限責任公司 |
| Class | 優秀 截至2024年11月13日 | |
| 普通股，每股0.00001美元標的價值。 | 2,658,071 |
目錄
| 頁面 | ||
| 第一部分-財務資訊 | ||
| 項目 1. | 財務報表 | 3 |
| 項目 二. | 管理層對財務狀況及營運結果進行討論及分析 | 21 |
| 項目 三. | 關於市場風險的定量和定性披露 | 27 |
| 項目 4. | 控制和程序 | 27 |
| 第二部分-其他資料 | ||
| 項目 1. | 法律程序 | 28 |
| 項目 一 A. | 風險因素 | 28 |
| 項目 二. | 未登記出售股份證券及利用所得款項 | 28 |
| 項目 三. | 高級證券違約 | 28 |
| 項目 4. | 礦山安全披露 | 28 |
| 項目 5. | 其他資訊 | 28 |
| 項目 六. | 展品 | 28 |
| 簽名 | 29 | |
| 2 |
第一部分 - 財務資訊
| ITEM 1. | 財務報表。 |
IVEDA 解決方案，公司。
簡明合併資產負債表
(未經審核)
| 2024年9月30日 | 2023年12月31日 | |||||||
| 資產 | ||||||||
| 流動資產 | ||||||||
| 現金及約當現金 | $ | $ | ||||||
| 受限現金 | ||||||||
| 應收帳款淨額 | ||||||||
| 存貨，淨值 | ||||||||
| 其他流動資產 | ||||||||
| 所有流動資产總額 | ||||||||
| 資產和設備，淨值 | ||||||||
| 無形資產，淨額 | ||||||||
| 其他資產 | ||||||||
| 總資產 | $ | $ | ||||||
| 負債及股東權益 | ||||||||
| 流動負債 | ||||||||
| 應付帳款及其他 | $ | $ | ||||||
| 短期債務 | ||||||||
| 長期債務的當前到期部分 | ||||||||
| 全部流动负债 | ||||||||
| 長期債務 | ||||||||
| 總負債 | ||||||||
| 股東權益 | ||||||||
| 每股面額$ 面值； 授權股份數， 截至2024年9月30日及2023年12月31日發行及流通的優先股 | ||||||||
| 普通股，每股面值$ 面值； 授權的股份； 和 截至2024年9月30日和2023年12月31日，已發行並流通股份分別為 | ||||||||
| 資本公積金 | ||||||||
| 非控制權益 | ( | ) | ( | ) | ||||
| 累積其他綜合損失 | ( | ) | ( | ) | ||||
| 累積虧損 | ( | ) | ( | ) | ||||
| 股東權益總計 | ||||||||
| 負債總額和股東權益總額 | $ | $ | ||||||
請參閱未經審核的簡明綜合財務基本報表附註。
| 3 |
IVEDA SOLUTIONS，INC。
精簡 合併損益表
(未經審計)
| 三個月 結束的六個月 九月三十日， 2024 | 三個月 結束的六個月 九月三十日， 2023 | 截至九個月 結束的六個月 九月三十日， 2024 | 截至九個月 結束的六個月 九月三十日， 2023 | |||||||||||||
| 收入 | ||||||||||||||||
| 設備銷售 | $ | $ | $ | $ | ||||||||||||
| 服務收入 | ||||||||||||||||
| 營業收入合計 | ||||||||||||||||
| 收入成本 | ||||||||||||||||
| 毛利潤 | ||||||||||||||||
| 經營費用 | ||||||||||||||||
| 總務及行政 | ||||||||||||||||
| 總營業費用 | ||||||||||||||||
| 營業虧損 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 其他收入（支出） | ||||||||||||||||
| 其他收入（費用） | ( | ) | ||||||||||||||
| 利息收入 | ||||||||||||||||
| 利息費用 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 淨其他收益（費用）總額 | ||||||||||||||||
| 稅前虧損 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 所得稅利益（準備） | ( | ) | ( | ) | ||||||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 歸屬於非控股權益的淨損失 | ||||||||||||||||
| 歸屬於IVEDA SOLUTIONS, INC.的淨損失 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| $0.31 | $ | ) | $ | ) | $ | ) | $ | ) | ||||||||
| 加權平均股份 | ||||||||||||||||
請參見 附帶的未經審計的簡明合併基本報表說明。
| 4 |
IVEDA SOLUTIONS，INC。
精簡的 綜合陳述
綜合虧損
(未經審計)
| 三個月 結束的六個月 九月三十日， 2024 | 三個月 結束的六個月 九月三十日， 2023 | 截至九個月 結束的六個月 九月三十日， 2024 | 截至九個月 結束的六個月 九月三十日， 2023 | |||||||||||||
| Iveda Solutions, Inc. 的淨虧損 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 其他全面損失 | ||||||||||||||||
| 由於外幣換算引起的股權調整變化，扣除稅後 | ( | ) | ( | ) | ( | ) | ||||||||||
| 綜合損失 | $ | ( | ) | $ | ( | ) | ( | ) | ( | ) | ||||||
請參見 附帶的未經審計的簡明合併基本報表.
| 5 |
IVEDA SOLUTIONS，INC。
簡明的股東權益合併財務報表
(未經審計)
| 累計 | ||||||||||||||||||||||||||||
| 普通 | 額外的 | 非- | 其他 | 總計 | ||||||||||||||||||||||||
| 普通 | 股票 | 實收資本 | 累計 | 控股 | 綜合 | 股東權益 | ||||||||||||||||||||||
| 股票 | 金額 | 資本 | 虧損 | 利息 | （損失） | 股權 | ||||||||||||||||||||||
| 2022年12月31日的餘額 | $ | | $ | $ | ( | ) | $ | ( | ) | $ | | |||||||||||||||||
| 2022年8月份發行的認股權證行使 | ||||||||||||||||||||||||||||
| 淨損失 | ( | ) | ( | ) | ||||||||||||||||||||||||
| 綜合損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 2023年3月31日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
| 向員工提供公共股票 | ||||||||||||||||||||||||||||
| 非控制權益 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 淨損失 | ( | ) | ( | ) | ||||||||||||||||||||||||
| 綜合損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 2023年6月30日餘額 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
| 向員工提供公共股票 | ||||||||||||||||||||||||||||
| 非控制權益 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 綜合損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 2023年9月30日結餘 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
| 2023年12月31日結餘 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
| 融資成本 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 非控制權益 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 綜合損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 2024年3月31日結餘 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
| 向員工提供公共股票 | ||||||||||||||||||||||||||||
| 股票期權補償 | - | |||||||||||||||||||||||||||
| 非控制權益 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 綜合損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 2024年6月30日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
| 於九月份發行的普通股 | ||||||||||||||||||||||||||||
| 預先擬定的認股權證。 | - | |||||||||||||||||||||||||||
| 融資成本 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 分拆碎股 | ( | ) | ||||||||||||||||||||||||||
| 非控制權益 | ( | ) | ( | ) | ||||||||||||||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| 綜合損失 | - | |||||||||||||||||||||||||||
| 2024年9月30日結餘 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||
請參閱未經審計的綜合財務報表附註
| 6 |
IVEDA SOLUTIONS，INC。
簡明綜合現金流量表
截至2024年和2023年9月30日的九個月（未經審計）
| 2024年9月30日 | 2023年9月30日 | |||||||
| 經營活動產生的現金流量 | ||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | ||
| 用於將淨損失調節爲經營活動現金淨提供（使用）的調整 | ||||||||
| 折舊 | ||||||||
| 股票薪酬費用 | ||||||||
| 向員工提供公共股票 | ||||||||
| 營運資產和負債的變化 | ||||||||
| 應收賬款 | ( | ) | ||||||
| 存貨 | ( | ) | ||||||
| 其他流動資產 | ( | ) | ||||||
| 其他資產 | ( | ) | ||||||
| 應付賬款及其他應付款的增加（減少） | ( | ) | ||||||
| 經營活動中的現金流量淨額 | ( | ) | ( | ) | ||||
| 投資活動產生的現金流量 | ||||||||
| 購買無形資產 | ( | ) | ( | ) | ||||
| 購買固定資產和設備 | ( | ) | ( | ) | ||||
| 投資活動中使用的淨現金流量 | ( | ) | ( | ) | ||||
| 籌資活動產生的現金流量 | ||||||||
| 短期債務償還 | ( | ) | ( | ) | ||||
| 長期債務淨額變動 | ( | ) | ||||||
| 普通股發行，融資成本淨額 | ||||||||
| 融資活動提供的淨現金 | ||||||||
| 匯率變動對現金的影響 | ( | ) | ( | ) | ||||
| 現金、受限現金和現金等價物淨減少 | ( | ) | ( | ) | ||||
| 現金、受限現金和現金等價物-期初 | ||||||||
| 現金、受限現金和現金等價物-期末 | $ | $ | ||||||
請參見 附帶的未經審計的簡明合併基本報表說明。
| 7 |
IVEDA SOLUTIONS，INC。
濃縮 合併現金流量表 - 繼續
截至2024年和2023年9月30日的九個月（未經審計）
| 2024年9月 30日 | 2023年9月30日 | |||||||
| 現金流補充信息披露 | ||||||||
| 支付的利息 | $ | $ | ||||||
| 所得稅已支付 | $ | $ | ||||||
| 非現金投資和融資活動的補充披露 | ||||||||
| 爲服務發行的普通股 | $ | $ | ||||||
請參見 附帶的未經審計的簡明合併基本報表說明。
| 8 |
IVEDA SOLUTIONS，INC。
簡明合併財務報表附註
注意 1 業務性質
業務性質
Iveda 自2005年以來一直爲我們的客戶提供實時IP視頻監控科技。雖然我們仍然提供視頻監控科技， 但我們的核心產品線已發展爲包括人工智能智能視頻搜索科技，爲任何視頻監控 系統及物聯網（Internet of Things）設備和平台提供真正的智能。Iveda還提供智能公用設施、智能傳感器、網關和跟蹤器。我們的 發展是響應全球許多城市和組織對數字化轉型的需求。我們的 IvedaAI® 智能 視頻搜索科技爲通常被動的視頻監控系統增添了重要的智能。IvedaAI爲任何 IP攝像頭以及大多數流行的網絡視頻錄像機（NVR）和視頻管理系統（VMS）提供人工智能功能。IvedaAI附帶一個設備或服務器， 根據最終用戶的需求預配置多項人工智能功能。
AI功能
| ● | 物體搜索 | |
| ● | 面部搜索（無需數據庫） | |
| ● | 人臉識別 (來自數據庫) | |
| ● | 車牌識別（100多個國家/地區），包括製造商和型號 | |
| ● | 入侵檢測 | |
| ● | 武器檢測 | |
| ● | 消防檢測 | |
| ● | 人員計數 | |
| ● | 車輛計數 | |
| ● | 溫度測量 | |
| ● | 公共 衛生分析（口罩檢測） | |
| ● | QR和條形碼檢測 |
關鍵特徵
| ● | 直播 攝像機視圖 | |
| ● | 直播 追蹤 | |
| ● | 異常 檢測 — 車輛/人員錯誤方向檢測 | |
| ● | 車輛/人 遊蕩檢測 | |
| ● | 秋季 檢測 | |
| ● | 非法 停車檢測 | |
| ● | 熱圖 世代 |
IvedaAI 包含在計算機/服務器環境中運行的深度學習視頻分析軟件，可以部署在邊緣 級別或數據中心以進行集中式雲模式。我們結合了硬件和人工智能軟件，用於快速高效地搜索視頻 對象，這些對象存儲在外部(NVR)或存儲設備中，並可直播來自任何IP攝像頭的視頻數據。
IvedaAI 適用於任何符合ONVIF標準的IP攝像頭和大多數流行的NVR/VMS（視頻管理系統）平台，能夠在不到一秒的時間內準確搜索數十至數千台攝像頭。IvedaAI產品旨在最大化效率，節省時間，並削減成本。用戶可以設置警報，而不是事後觀看數小時的視頻錄像。
Iveda 提供了許多物聯網傳感器和設備，適用於各種應用，如能源管理、智能家居、智能建築、智能社區 以及患者/老年護理。我們的網關和站點充當特定區域內傳感器和設備的主要中心。它們配備了 高水平的通信協議，如Zigbee、WiFi、藍牙和USB。它們通過以太網或移動數據 網絡連接到互聯網。我們提供物聯網平台，支持集中設備管理並在大規模上推送數字服務。我們的智能設備 包括水傳感器、環境傳感器、進入傳感器、智能插座、警報器、體溫墊、護理手錶和追蹤設備。
我們還爲辦公樓、學校、購物中心、酒店、醫院和智慧城市項目提供智能供電技術。我們的智能供電硬件配備有RS485通信接口，允許米儀連接到各種第三方SCADA軟件用於監控和控制目的。這一系列產品包括智能供電、水錶、智能照明控制系統和智能支付系統。
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艾維達的 Cerebro 是一個軟件技術平台，它集成了許多不同的系統，用於集中訪問和管理應用程序， 子系統和整個環境中的設備。它與系統無關，將支持跨平台的互操作性。Cerebro 的 路線圖包括適用於所有Iveda平台的儀表板，用於集中管理所有設備。它提供對以下內容的遠程訪問 儀表板用於單一用戶界面，可隨時隨地方便地訪問和及時分析相關信息 管理整個組織或城市的方式。Cerebro 將城市系統和子系統不可分割地連接在一起。這種整合 並統一所有子系統，使得在一箇中央實體上採集和分析所有信息，從而實現全面、有效 以及城市的全面管理和保護。
IvedaSPS 是我們的智慧電力解決方案，利用我們的Cerebro 物聯網平台。這完成了我們的數字化轉型解決方案，在智慧城市部署以及大型組織中至關重要。我們爲辦公樓、學校、購物中心、酒店、醫院以及智慧城市項目提供智能電力技術。該產品包括智能電力、水錶、智能照明控制系統和智能支付系統。
在過去的幾年裏，智慧城市在全球範圍內成爲了一個熱門話題。在幾乎沒有人類互動的情況下，科技提高了效率，加快了決策速度，並減少了響應時間。不斷減少的公共安全預算和資源促使了這一轉變。越來越多的市政當局正在利用下一代科技來提升公民的安全和安防-半導體。我們的回應是我們完整的物聯網科技套件，包括人工智能智能視頻搜索技術、智能傳感器、追蹤設備、視頻監控系統和智能電源。
Utilus 是我們的智能杆解決方案，利用我們的Cerebro物聯網平台。 這將完成我們的數字化轉型解決方案，對於智能城市部署以及大型組織至關重要。 Iveda利用在大多數現代城市中已經存在的基礎設施 - 具有電力的燈杆。 我們使用Utilus裝備現有的燈杆。 Utilus包括電力和互聯網，建立一個用於訪問和管理傳感器和設備的通信網絡，這些傳感器和設備是城市必須保持其居民安全和安全並有效地管理公用事業消耗的。我們的智能杆產品也非常適合：
| ● | 政府或大規模城市部署 | |
| ● | 支持和改善城市服務 | |
| ● | 減少緊急響應時間 | |
| ● | 犯罪與危險保護 | |
| ● | 監測 和改善空氣質量 | |
| ● | 聲音 檢測 | |
| ● | 交通 監控和移動服務 | |
| ● | 數據 分析和貨幣化機會 |
vumastAR vumastAR是一款人工智能視覺軟件，可以使用IP攝像頭、AR眼鏡、安卓設備和平板電腦拍攝的視頻進行實時數據分析和處理。 vumastAR可以完全根據用戶需求定製，只需一個短視頻，便可在短短兩個小時內對人工智能進行訓練。可部署 在多個行業中用於不同用途，例如：
| ● | 質量 和維護檢查: vumastAR具備協助關鍵檢測致癌化學compound水平、電氣 接線和焊接檢查的能力。 | |
| ● | 工廠 和生產線工作: 快速準確的機器識別使得逐項計數、庫存審計和組件配套成爲可能。 | |
| ● | 製藥: 準確識別和量化藥物，極大減少了數藥片的手動勞動，同時消除了人爲錯誤。 | |
| ● | 供應 鏈： 檢測缺陷和異常以提高準確性，通過積極減少因手動錯誤而造成的營業收入損失來增加底線。 | |
| ● | 製造業-半導體： 數字化儀表和量具的讀數和監控，以及零件編號識別，能夠將模擬信息 轉換爲數字數據。 | |
| ● | 運輸: 增強運營的安全和安防，涵蓋油罐車的裝卸，保障人員和產品/設備的安全。 | |
| ● | 零售: 確保正確的商品識別和組織，提高零售結賬和產品分類的準確性， 最終影響營業收入。 |
vumastAR被售作爲一種許可證，每個設備需要按月訂閱雲訪問訓練好的人工智能模型。
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IvedaXpress IvedaXpress 是一個能夠讓用戶使用現有的IP攝像頭並應用人工智能分析的系統，無需大型服務器或專門的 IT部門。IvedaXpress 旨在即插即用，提供簡便的設置流程，硬件無需維護。 每個IP攝像頭可從本地計算機或智能手機進行直播觀看和播放。視頻可以存儲在本地計算機上 或使用亞馬遜或dropbox提供的免費存儲進行遠程存儲。
Iveda 智慧UVC 是一種商業級、人工智能驅動的紫外線消毒輻射（UVGI）。Iveda智慧UVC為標準 HVAC通風口添加紫外線燈，以迅速、簡便且經濟的方式部署到家庭和商業建築中。利用現有的空氣循環系統， Iveda智慧UVC通風口通過對經過的空氣進行紫外線照射來消毒空氣。消除了手動對辦公室、 會議室及其他工作空間進行消毒的需要。Iveda智慧UVC可以與Iveda SPS（智能電源管理）和傳感器集成， 以高效且有效地根據檢測到的動作運行光源。
Iveda’s Smart Drones are flown to perform certain functions from an aerial view without the need for a pilot onboard. Smart Drones utilize AI-based software for autonomous operation and navigation from taking off, returning to base, carrying out mission-critical tasks or simply doing an aerial patrol, without the need of human intervention. Unlike typical drones, Iveda Smart Drones are cloud-based and can be part of a network of drones for central management. They are equipped with Iveda’s Sentir Video Surveillance System and IvedaAI Intelligent Video Search Technology.
Iveda Smart Drone product offering is robust and expansive for a multitude of industrial, commercial, and military applications.
Key Features of Iveda’s Smart Drone:
Fully Autonomous
Scheduled autonomous take-off, flight mission execution, monitoring, landing and recharging
Easy operation and 24-7 flight mission
Intelligent Computing
Live video streaming - real-time object recognition and tracking
Onboard (edged) AI and data analysis
Safety Design
Multiply redundant and fail-safe systems
Weather resistant industrial grade systems (IP54)
Designed and made in Taiwan (MIT)
Skywatch
Planning and editing real-time/timed missions
User/Group permission control & flight data management
Failsafe alarm and FPV gimbal control
Insight
影像（2D/3D）的自動配準服務
人工智能用於檢查自然災害、車輛和行人跟蹤以及能源設施檢查。
可視化 地理數據和分析報告
| ● | 螺旋槳: 8個（多重冗餘） | |
| ● | 對角線 佔地面積: 29.76英寸 / 756毫米 | |
| ● | 重量: 14.1磅 / 6.4千克 | |
| ● | 懸停 時間: 30分鐘 | |
| ● | 風 耐受性: 博福特風級 – 6 | |
| ● | IP 級別: IP54 | |
| ● | 相機 傳感器-半導體: 雙RGB, 紅外/熱成像 | |
| ● | 網絡: 5g概念/4G LTE和2.4G Wi-Fi |
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智能公用設施機櫃 爲用戶數提供了一個方便的工具，監測他們的日常能源消耗，精準定位電氣泄漏，並防止電線過載和潛在火災。它利用物聯網傳感器檢測消耗、溫度和篡改方面的異常。Iveda智能公用設施機櫃具有內部環境控制設計，放置在耐用的工業級機櫃中。它包括一個智能邊緣計算網關，支持多種RF通信協議，如4G、Z-Wave和WiFi，以及用於未經授權訪問的篡改傳感器。智能水錶和燃料幣表可以添加到機櫃中。
Vemo 車身攝像頭 通過4G流式傳輸實時視頻到總部，並作爲具有推送對講功能的對講機。憑藉其多模式音頻，它也可以用於廣播和免提音頻會議以便於小組對話。Vemo具有WiFi功能，非常適合城市範圍的部署。Vemo實時將直播概念視頻瞬間傳輸到雲端，無需額外的軟件或硬件。 Vemo的雲管理平台可以集中管理無限數量的設備，視頻可以在PC、Android和iOS客戶端上訪問。此外，Vemo可以直接流式傳輸到IvedaAI平台以進行實時視頻分析，以實時搜索面孔、物體或車牌。
IvedaCare於2022年11月推出，是一套簡單易用的無線健康和保健設備，旨在幫助您監測您親人的健康 和活動，即使您無法親自到場。我們的使命是幫助確保您親人的安全和獨立。通過我們的愛文思控股物聯網設備，您可以與年長的親人保持聯繫，實現實時監測、跌倒檢測、用藥提醒等功能。使用IvedaCare，您不僅可以遠程監控您的家和親人，還可以通過應用程序做出潛在的救命決策。基於雲的無線傳感器收集實時數據，並通過應用與整個家庭圈共享。客戶可以添加專業監控的訂閱服務。如果可信圈不可用，我們的緊急呼叫中心將迅速派遣緊急服務。
歷史上， 我們銷售和安裝視頻監控設備，主要用於安防-半導體，其次用於提高運營效率和 市場營銷。我們還爲各種企業和組織提供視頻託管、車載流媒體視頻、歸檔以及實時遠程監控服務。雖然我們之前只使用著名品牌的現成攝像系統，但現在我們通過在臺灣的製造商採購 自己的攝像頭，以便更靈活地滿足客戶需求。我們現在能夠根據客戶規格提供IP攝像頭和NVR。我們仍然使用基於ONVIF（開放網絡視頻接口論壇）的攝像頭， 這是一種全球貨幣的IP物理安防產品接口標準。
在2014年，我們將營收模型從直接項目銷售轉變爲向通信公司、集成商和其他科技轉售商等服務提供商許可我們的平台，並向它們賣出物聯網硬件。 與已經爲現有客戶群提供服務的服務提供商合作，使我們能夠專注於爲少數合作伙伴提供服務，並專注於技術方案的提供。 服務提供商利用其最終用戶基礎設施來銷售、計費和爲Iveda的產品提供客戶服務。這種業務模式提供了雙重營收流 - 一部分來自硬件銷售，另一部分來自月度許可費。
Iveda 我們的子公司Iveda臺灣專注於爲機場、商業大樓、政府客戶、數據中心、購物中心、酒店、銀行以及安全城市部署新的視頻監控系統並整合現有系統。Iveda臺灣將安防-半導體監控產品、軟件和服務結合，向最終用戶提供集成安防解決方案。通過Iveda臺灣，我們不僅可以進入亞洲市場，還可以接觸到亞洲製造商和工程技術。Iveda臺灣是我們的研發部門，與臺灣的開發團隊合作。
注2 重要會計政策摘要
合併
自2011年4月30日起，我們完成了對臺灣公司Sole Vision Technologies（原名MEGAsys，又名Iveda Taiwan）的收購。我們將我們的基本報表與Iveda Taiwan的基本報表合併。在合併中，所有關聯公司餘額和交易已被消除。我們的非控股權益合併在公司未經審計的綜合財務報表中，代表我們創業公司合作伙伴持有的子公司權益。創業公司的合作伙伴持有
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us-gaap:SalesRevenueNetMember
我們具有大量的資產和設備，以及一項由Cerebro（我們的軟體科技平台）組成的無形資產。我們使用ASC 360“財產、廠房和設備”中規定的方法來審查長期資產攜帶價值的可回收性。我們每年或在事件或情況變更指示資產或資產群組的攜帶金額可能無法回收時，審查我們的長期資產是否存在減值。持有和使用的長期資產的可回收性是通過比較資產的攜帶金額與預期由資產產生的未貼現未來淨營運現金流量來衡量的。如果這些資產被認為受損，則應認列的減損金額是資產攜帶價值超過其公允價值的金額。截至2024年和2023年9月30日的三個月和九個月內，我們沒有記錄任何減損損失。
Basis of Accounting Preparation
Our 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.
Use of Estimates
The 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 notes. Actual results could differ from these estimates.
Revenue and Expense Recognition
公司適用會計準則彙編（ASC）606-10的規定， Revenue from Contracts with Customers以及所有相關的適當指引。公司根據核心原則確認營業收入，以反映對客戶控制權的轉移，其金額反映了其預期將有權獲得的對價。爲了實現該核心原則，公司採用以下五步法： (1) 確定與客戶的合同，(2) 確定合同中的履約義務，(3) 判斷交易價格，(4) 將交易價格分配給合同中的履約義務，(5) 在履約義務滿足時確認營業收入。
這個 公司將客戶採購訂單（在某些情況下受主銷售協議約束）視爲與客戶的合同 顧客。在向分銷商銷售的情況下，公司已與分銷商簽訂合同，即公司 僅與分銷商簽訂具有可強制執行的權利和義務的合同。作爲合同對價的一部分, 公司評估某些因素，包括客戶的支付能力（或信用風險）。對於每份合同，公司 將轉讓產品或完成合同服務範圍的承諾視爲已確定的內容，兩者各不相同 履約義務。在確定交易價格時，公司評估價格是否需要退款或調整 以確定它預計有權獲得的淨對價。由於公司的標準付款條件小於一 今年，它根據ASC 606-10-32-18選擇了切實可行的權宜之計，即不評估合同是否包含重要的融資部分。 公司根據每種不同產品的相對獨立銷售價格爲其分配交易價格。產品價格 採購訂單上規定的價格被視爲獨立銷售價格，因爲它是可觀察的輸入，將價格描述爲 如果在類似情況下出售給類似客戶。當產品的控制權移交給客戶時，收入即被確認 （即，當公司的履約義務得到履行時），這通常發生在發貨時。進一步確定 控制權是否已轉移，公司會考慮是否存在當前的付款權和法定所有權以及風險 以及已轉讓給客戶的所有權獎勵。除保修外，客戶無權退回產品 他們只能獲得維修服務或更換產品的原因。該公司還選擇了切實可行的權宜之計 根據ASC 340-40-25-4，將產品銷售佣金作爲公司佣金資產的攤銷期支出 否則本來可以確認不到一年。
該公司主要通過以下方式向政府和商業客戶銷售其產品和服務：
| ● | Iveda臺灣的銷售大部分是針對臺灣客戶的項目銷售，直接面向最終客戶（通常是市政府或商業客戶），通過其銷售團隊，這個團隊由員工組成。當設備發貨給最終客戶時，營業收入會被記錄，並在進行安裝或維護工作時收取服務費用。 |
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固定價格設備安裝合同（項目銷售）的收入按完工百分比法確認。完工百分比是通過到目前爲止已發生的成本與每個合同的預計總成本的百分比來衡量的。之所以使用這種方法，是因爲管理層認爲已支出的成本是衡量這些合同進展的最佳可用指標。由於在估計成本和收入時固有的不確定性，使用的估計值很可能會發生變化。
合同成本包括所有直接材料、分包商、勞動成本和與合同執行相關的設備成本。一般行政費用按發生的原則計入費用。對未完成合同的預估損失做出準備金，在確定這種損失的期間進行。工作績效、工作條件和預計盈利能力的變化可能導致成本和收入的修訂，並在確定這些修訂的期間予以確認。由於工作績效、工作條件、合同罰款條款、索賠、變更訂單和和解結果而導致的預估工作盈利能力的變化，將作爲當前期間的預估變更進行覈算。利潤激勵計入收入時，其實現是比較確定的。索賠在實現可能性和金額可靠估計時計入收入。
| ● | Iveda 美國的硬件銷售通過獨立經銷商或集成商進行，他們以批發價從公司購買產品，然後以零售價出售給最終用戶（通常是政府機構或商業客戶）。經銷商保留利潤作爲其在交易中的補償。經銷商或集成商通常會維護產品庫存，或者產品直接從製造商發貨。因此，在執行以上的一至五步驟後，營業收入記錄在產品運送到經銷商時，或者根據經銷商的指示，並與分銷協議的條款一致。 | |
| ● | Iveda 美國還銷售軟件，其中包括按月或按年支付的許可費。收入每月記錄一次，如果許可按年付款，則收入將作爲遞延收入記錄，並根據各自的時間段分期攤銷。 |
綜合損失
綜合虧損被定義爲除了由業主投資和向業主分配所產生的所有股本變動之外的所有變動。在其他披露中，根據當前會計準則要求承認的所有作爲綜合收益組成部分的項目都必須在與其他基本報表同等重要性的財務報表中報告。我們目前的其他綜合收益項目是外匯翻譯調整。
集中度
金融工具可能使我們面臨信用風險集中，主要包括現金及現金等價物和交易應收賬款。
幾乎所有現金存放在三家金融機構，其中兩家在美國，一家在臺灣。有時，在美國存款金額可能超過FDIC保險額度。存款在臺灣金融機構由中央存款保險公司（CDIC）投保，最高覆蓋額爲新臺幣
| 14 |
帳戶
應收賬款是無擔保的，如果此類金額無法收回，我們就會面臨風險。我們定期進行信貸
評估客戶的財務狀況，通常不需要抵押品。
營業收入
來自70個客戶中的四個客戶大約佔總營業收入的
Revenue
from five customers out of 72 total customers represented approximately
No
other customers represented greater than
Cash and Cash Equivalents
We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.
Accounts Receivable
Accounts receivable is recorded at the invoiced amount, net of allowance for expected credit losses. The Company’s primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the Account receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company’s customers financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates.
All
provisions for the allowance for doubtful accounts are included as a component of general and administrative expenses on the accompanying
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 $
Deposits – Current
Our current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for new proposed projects.
| 15 |
Other Current Assets
| September 30, 2024 (UNAUDITED) | December 31, 2023 (UNAUDITED) | |||||||
| Prepaid Expenses | $ | $ | ||||||
| Advances to Suppliers | ||||||||
| Tender Deposits | ||||||||
| Other Current Assets | $ | $ | ||||||
Inventories
We
do not manufacture product hence all of our inventory is finished goods to be sold or used in the installation process. We review
our inventories for excess or obsolete products based on an analysis of historical usage and an evaluation of estimated future
demand, market conditions, and alternative uses for possible excess or obsolete parts. The allowance for slow-moving and obsolete
inventory is $
Property and Equipment
Property
and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of
to
Intangible Asset
Intangible 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.
Other Assets
Other 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
Deferred 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. Temporary 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.
We are subject to U.S. federal income tax as well as state income tax.
Our U.S. income tax returns are subject to review and examination by federal, state, and local authorities. Our U.S. tax returns for the years 2020 to 2023 are open to examination by federal, local, and state authorities.
Our 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.
Restricted Cash
Restricted cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment.
Accounts and Other Payables
| September 30, 2024 (UNAUDITED) | December 31, 2023 (UNAUDITED) | |||||||
| Accounts Payable | $ | $ | ||||||
| Accrued Expenses | ||||||||
| Deferred Revenue, Customer Deposits, & Taxes Payable | ||||||||
| Accounts and Other Payables Total | $ | $ | ||||||
| 16 |
Deferred Revenue
Advance payments received from customers on future installation projects are recorded as deferred revenue.
Non-Controlling Interests
Non-controlling interests 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.
Stock-Based Compensation
We 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 $ and $ stock-based compensation expense for the three and nine months ended September 30, 2024 and stock- based compensation expense for three and nine months ended September 30, 2023.
Cost of Financing
Cost of Financing consists of legal and accounting charges related to finance offerings as an offset to additional paid in capital.
Fair Value of Financial Instruments
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September 30, 2024 and December 31, 2023. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts receivable, accounts payable, accrued expenses, and bank loans. Fair values were assumed to approximate carrying values for these financial instruments because they are short-term in nature or because they are receivable or payable on demand.
Segment Information
We 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:
| Net Revenue for the nine months ended September 30, 2024 (UNAUDITED) | Net Revenue for the nine months ended September 30, 2023 (UNAUDITED) | |||||||
| United States | $ | $ | ||||||
| Republic of China (Taiwan) | $ | $ | ||||||
Furthermore, 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.
We 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
Certain amounts in 2023 have been reclassified to conform to the 2024 presentation.
New Accounting Standards
Financial Instruments - Credit Losses
The 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.
Under 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.
All 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.
| 17 |
NOTE 3 SHORT-TERM AND LONG-TERM DEBT
The short-term debt balances were as follows:
| September 30, 2024 (UNAUDITED) | December 31, 2023 (UNAUDITED) | |||||||
| Loan from Shanghai Bank at | ||||||||
| Loan from HuaNam Bank at | ||||||||
| Loan from ChangHwa Bank at | ||||||||
| Balance at end of period | $ | $ | ||||||
Long-term debt balances were as follows:
| September 30, 2024 (UNAUDITED) | December 31, 2023 (UNAUDITED) | |||||||
| Loans from Shanghai Bank with interest rates | ||||||||
| Current Maturities of Long-term debt (classified under Current Liabilities) | ( | ) | ||||||
| Balance at end of period | $ | $ | ||||||
| Annual maturities of long-term debt during the next five years are as follows: | Amount Maturity | |||
| October 1, 2024 – December 31, 2024 | $ | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Total | $ | |||
NOTE 4 RELATED PARTY TRANSACTIONS
We
expensed $
NOTE 5 PREFERRED STOCK
We are currently authorized to issue up to shares of preferred stock, par value $ per share, shares of which are designated as Series A Preferred Stock and 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.
| 18 |
NOTE 6 COMMON STOCK
Common Stock
We
are authorized to issue up to
shares of common stock, par value $
per share. We effectuated a reverse stock split on September 17, 2024 of
Stock Options
On 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 shares of common stock to directors, officers, key employees, and service providers of our company. In 2011, the 2010 Option Plan was amended to increase the number of shares issuable under the 2010 Option Plan to shares. In 2012, 2010 Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 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 (No. 333-175143), and December 4, 2013 (No. 333-192655). The 2010 Option Plan expired on January 18, 2020. As of December 31, 2023 there were options outstanding under the 2010 Option Plan.
On December 15, 2020, we adopted the Iveda Solutions, Inc. 2020 Plan (the “2020 Plan”). The 2020 Plan has a maximum of shares authorized with similar terms and conditions to the 2010 Option Plan. As of December 31, 2023 there were 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).
As of September 30, 2024 and December 31, 2023, there were and options outstanding, respectively, under all the option plans. For the three and nine months ended September 30, 2024 there were and options granted, respectively, and and options cancelled, respectively. For the three and nine months ended September 30, 2023 there were options granted and and options were cancelled, respectively. The weighted average fair value of options issued during 2024 was $ and for those issued during 2023 was $.
| Options Outstanding | Options Exercisable | |||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding at September 30, 2024 | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Number Exercisable at September 30, 2024 | Weighted- Average Exercise Price | |||||||||||||||||
| $ | - $ | $ | $ | |||||||||||||||||||
Information with respect to stock options outstanding and exercisable at December 31, 2023 is as follows:
| Options Outstanding | Options Exercisable | |||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding at December 31, 2023 | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Number Exercisable at December 31, 2023 | Weighted- Average Exercise Price | |||||||||||||||||
| $ | - $ | $ | $ | |||||||||||||||||||
Stock 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. Incentive stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m) of the Code. Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m). Under the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant.
We 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. The estimated fair value of options is recognized as expense on the straight-line basis over the options’ vesting periods. As of September 30, 2024 and December 31, 2023, we had approximately $ and $, respectively, unrecognized stock-based compensation.
Warrants
As of September 30, 2024 and December 31, 2023,
there were
Warrant transactions during nine months ended September 30, 2024 were as follows:
| 2024 | ||||||||
| Shares | Weighted- Average Exercise Price | |||||||
| Outstanding at Beginning of Year | $ | |||||||
| Granted | ||||||||
| Exercised | ||||||||
| Forfeited or Cancelled | ( | ) | ||||||
| Outstanding at September 30, 2024 | ||||||||
| Warrant Exercisable at September 30, 2024 | ||||||||
| Weighted-Average Fair Value of Warrants Granted During the Year | $ | |||||||
| 19 |
Information with respect to warrants outstanding and exercisable at September 30, 2024 is as follows:
| Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding at September 30, 2024 | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Number Exercisable at September 30, 2024 | Weighted- Average Exercise Price | |||||||||||||||||
| $ | | $ | $ | |||||||||||||||||||
Information with respect to warrants outstanding and exercisable at December 31, 2023 is as follows:
| Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
| Range of Exercise Prices | Number Outstanding at December 31, 2023 | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Number Exercisable at December 31, 2023 | Weighted- Average Exercise Price | |||||||||||||||||
| $ | | $ | $ | |||||||||||||||||||
NOTE 8 INCOME TAXES
Taiwan (Republic of China) Corporate Tax
According 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 basis. 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.
以下表格提供了基本和稀釋每股收益計算中反映的分子和分母的對賬， 這符合ASC 260，「每股收益」的要求。
基本每股收益（「EPS」）是通過將報告的可供股東使用的收益除以加權平均流通股本來計算的。我們在截至2024年和2023年9月30日的三個月和九個月內發生了淨虧損，包含稀釋性證券在每股普通股收益中的影響對每股收益的計算而言將是反稀釋的。因此，所有期權、warrants和可能可轉換爲普通股的股份均被排除在截至2024年和2023年9月30日的每股稀釋收益的計算之外。
| 三個月 結束 2024年9月30日 （未經審計） | 三個月 結束 2023年9月30日 （未經審計） | |||||||
| 基本每股收益和攤薄後每股收益 | ||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | ||
| 加權平均股數 | ||||||||
| 每股基本和攤薄虧損 | $ | ) | $ | ) | ||||
| 九個月 結束了 2024年9月30日 (未經審計) | 九個月 結束了 2023年9月30日 （未經審計） | |||||||
| 基本每股收益和攤薄後每股收益 | ||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | ||
| 加權平均股數 | ||||||||
| 每股基本和攤薄虧損 | $ | ) | $ | ) | ||||
注意 10 承付款和意外開支
根據與群光電力科技股份有限公司、西門子、石林電機工程公司以及中興電機制造公司簽訂的某些合同，Iveda臺灣需要提供項目後服務。如果Iveda臺灣未來未能提供這些項目後服務，相關合同其他方有追索權。截至2024年9月30日，如果Iveda未能提供未來的項目後服務，則面臨的財務風險爲$
在正常的業務過程中，公司會面臨包括法律訴訟和與業務相關的多種事項，如政府調查和稅務事務在內的不確定性。如果公司確定可能會發生損失並且能夠做出合理估計損失的情況下，公司會爲此類不確定性認定一項負債。公司可能考慮許多因素來進行這些評估，包括歷史和每個事項的具體事實和情況。截至2024年9月30日，並沒有這樣的案例。
注意 11 後續事件
公司評估資產負債表日之後發生的事件和交易，直到財務報表可發行的日期。 在資產負債表日與財務報表可發行日之間發生的任何重大事件都作爲後續事件披露，同時財務報表被調整以反映在資產負債表日存在的任何情況。 根據此次審查，公司未識別出任何需要調整或披露的已確認或未確認的後續事件。
| 20 |
| 項目 2. | 財務 信息。 |
管理層的財務狀況和經營結果分析
以下討論應與我們未經審計的簡明合併基本報表及本10-Q季度報告中其他部分的相關說明一同閱讀。
注意 關於前瞻性信息
根據文件10-Q季度報告中的前瞻性聲明涉及風險和不確定性。除歷史事實陳述之外的所有陳述在這份文件10-Q季度報告中，包括關於未來事件、我們未來的財務表現、業務策略以及未來業務運營計劃和目標的聲明，都屬於前瞻性聲明。在許多情況下，您可以通過術語如「預計」、「相信」、「可以」、「繼續」、「可能」、「估計」、「期望」、「打算」、「可能」、「計劃」、「潛在」、「預測」、「應該」或「將」或這些術語的否定形式或其他類似術語來識別前瞻性聲明。儘管我們只有在相信有合理基礎的情況下才會進行前瞻性聲明，但我們無法保證其準確性。這些聲明僅爲預測，並涉及已知和未知的風險、不確定性和其他因素，包括在「風險因素」、「流動性和資本資源」下列出的風險，涉及我們繼續從經營活動或新投資中產生現金的能力，或在這份文件10-Q季度報告中或在截至2023年12月31日的我們的合併財務報表中討論的其他地方，這些風險可能導致我們或我們所在行業的實際結果、活動水平、績效或成就與這些前瞻性聲明所表達或暗示的結果有實質不同。此外，我們經營在一個競爭激烈且快速變化的環境中。新的風險不時出現，我們無法預測所有風險因素，也無法評估所有因素對我們業務的影響程度，或一個因素或多個因素組合可能導致我們的實際結果與任何前瞻性聲明包含的結果實質上有所不同。
概覽
Iveda 自2005年起爲我們的客戶提供實時IP視頻監控科技。雖然我們仍然提供視頻監控技術， 但我們的核心產品線已經發展到包括人工智能智能搜索科技，爲任何視頻監控 系統以及物聯網（Internet of Things）設備和平台提供真正的智能。我們的演變是爲了響應全球許多城市 和組織對數字化轉型的需求。我們的IvedaAI智能視頻搜索技術爲通常被動的視頻 監控系統增加了關鍵智能。IvedaAI爲任何IP攝像頭和大多數流行的網絡錄像機（NVR）以及視頻管理 系統（VMS）提供人工智能功能。IvedaAI配備了一個設備或服務器-雲計算，預配置了多個基於最終用戶需求的人工智能功能。
AI功能
| ● | 物體 搜尋 | |
| ● | 臉 搜索（無需數據庫） | |
| ● | 臉 識別（來自數據庫） | |
| ● | 執照 車牌識別（100 多個國家），包括品牌和型號 | |
| ● | 入侵 檢測 | |
| ● | 武器 檢測 | |
| ● | 火 檢測 | |
| ● | 人們 正在計數 | |
| ● | 車輛 計數 | |
| ● | 溫度 檢測 | |
| ● | 公開 健康分析（口罩檢測） | |
| ● | QR碼 和條形碼檢測 |
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關鍵特徵
| ● | 直播攝像頭視圖 | |
| ● | 實時跟蹤 | |
| ● | 異常檢測-車輛/人員錯誤方向檢測 | |
| ● | 車輛/人員 徘徊檢測 | |
| ● | 跌倒檢測 | |
| ● | 非法 停車檢測 | |
| ● | 熱力圖生成 |
IvedaAI 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.
IvedaAI 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.
Iveda 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.
We also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects. Our smart 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.
Iveda’s 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.
Cerebro’s 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.
Iveda’s Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole structures. 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.
In 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.
We 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.
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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. 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.
In 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. For the years ended December 31, 2023 and 2022, Iveda Taiwan’s operations accounted for 93% and 71% of our total revenue, respectively.
The acquisition of Iveda Taiwan provided the following benefits to our business:
| ● | An 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. | |
| ● | Sourcing of products directly using Iveda Taiwan’s product sourcing expertise to enhance our custom integration capabilities. | |
| ● | Enhancements to the global distribution potential for our products and services. |
In 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. Patent No. 8,719,442 (as well as its Taiwanese and Chinese counterparts) with respect to the development of cloud-video technologies.
In 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.
Critical Accounting Policies and Estimates
Management’s Discussion and Analysis of Financial Conditions and Results of Operations is based upon our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. A description of our critical accounting policies and related judgments and estimates that affect the preparation of our financial statements is set forth in our consolidated financial statements for the year ended December 31, 2023. Such policies are unchanged.
New Accounting Standards
There were no new standards recently issued which would have an impact on our operations or disclosures.
Results of Operations for the Three Months Ended September 30, 2024 Compared with the Three Months Ended September 30, 2023
Net Revenue
We 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 contracts.
Cost of Revenue
Total 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%. The 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.
Operating Expenses
Operating expenses were $1.01 million for the three months ended September 30, 2024, compared with $1.05 million for the three months ended September 30, 2023, a decrease of ($0.04) million, or (3%). This net decrease in operating expenses in 2024 compared with 2023 is due primarily to no significant investor relations campaigns in the US based operations during this period.
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Loss from Operations
Loss 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.
Other Income (Expense), Net
Other 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.
Net Loss Attributable to Non-Controlling Interest
Net 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.
Net Loss
Net loss was $0.57 million for the three months ended September 30, 2024, compared with $0.85 million for the three months ended September 30, 2023. 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.
Results of Operations for the Nine months Ended September 30, 2024 Compared with the Nine months Ended September 30, 2023
Net Revenue
We 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. For 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 contracts.
Cost of Revenue
Total 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%). The 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.
Operating Expenses
Operating 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.
Loss from Operations
Loss 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 30, 2023. The loss from operations for the nine months was consistent because of the reduction in loss from operations in the most recent quarter results.
Other Income (Expense), Net
Other 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.
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Net Loss Attributable to Non-Controlling Interest
Net 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.
Net Loss
Net loss was $2.16 million for the nine months ended September 30, 2024, compared with $2.14 million for the nine months ended September 30, 2023. The increase of $0.02 million, or 1%, in net loss was primarily due to increased gross margins and decreased operating costs.
Liquidity and Capital Resources
As 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. There are no legal or economic factors that materially impact our ability to transfer funds between our U.S.-based and Taiwan-based segments.
Net cash used in operating activities during the nine months ended September 30, 2024 was ($3.2) million compared to ($1.9) million net cash used during the nine months ended September 30, 2023. Net cash used in operating activities for the nine months ended September 30, 2024 consisted primarily of the net loss of ($2.2) million. Other factors for the 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.
Net 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.
Net 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.
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We have experienced significant operating losses since our inception. At December 31, 2023, we had approximately $32 million in net operating loss carryforwards available for federal income tax purposes, which will begin to expire in 2025. We did not recognize any benefit from the federal net operating loss carryforwards in 2023 or 2022. We also had approximately $5.0 million in state net operating loss carryforwards, which expire after five years.
We have limited liquidity and have not yet established a stabilized source of revenue sufficient to cover operating costs, based on our current estimated burn rate. Accordingly, our continuation as a going concern is dependent upon our ability to generate greater revenue through increased sales and/or our ability to raise additional funds through the capital markets. No assurance can be given that we will be successful in future financing and revenue-generating efforts. Even if funding is available, we cannot assure investors that it will be available on terms that are favorable to our existing stockholders. Additional funding may be achieved through the issuance of equity or debt securities that could be significantly dilutive to the percentage ownership of our existing stockholders. In addition, these newly issued securities may have rights, preferences, or privileges senior to those of our existing stockholders. Accordingly, such a financing transaction could materially and adversely impact the price of our common stock.
Substantially all of our 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 limit.
Our accounts receivable are unsecured, and we are at risk to the extent such amounts become uncollectible. Although we perform periodic evaluations of our customers’ credit and financial condition, we generally do not require collateral in exchange for our products and services provided on credit.
We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. Payment terms for our U.S.-based segment require prepayment for most products before they are shipped and monthly Sentir licensing fees, which are due in advance on the first day of each month. For our U.S.-based segment, accounts receivable that are more than 120 days past due are considered delinquent. Payment terms for our Taiwan-based segment vary based on our agreements with our customers. Generally, we receive payment for our products and services within one year of commencing the project, except that we retain 5% of the total payment amount and release such amount one year after the completion of the project. 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. For 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.
Effects of Inflation
For the periods for which financial information is presented, we do not believe that the current levels of inflation in the United States have had a significant impact on our operations. Likewise, we do not believe that the current levels of inflation in Taiwan have had a significant impact on the operations of Iveda Taiwan.
Off Balance Sheet Arrangements
We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not have any undisclosed borrowings or debt, and we have not entered into any synthetic leases. We are, therefore, not materially exposed to any financing, liquidity, market, or credit risk that could arise if we had engaged in such relationships.
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| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
We are a smaller reporting company as defined by 17 C.F.R. 229 (10)(f)(i) and are not required to provide information under this item.
| ITEM 4. | CONTROLS AND PROCEDURES. |
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). There is inadequate knowledge of technical accounting and SEC reporting process in the Company. The Company is filing financial statements with the Securities Exchange Commission (SEC) under accounting principles generally accepted in the United States of America (“US GAAP”). The Company needs enough accounting personnel to perform all accounting functions and that have appropriate experience in financial reporting under US GAAP. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer, as of December 31, 2023, concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are not effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act was recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
In December 2013, we hired Robert J. Brilon, as Chief Financial Officer who has experience in SEC reporting and disclosures. We have plans for hiring additional financial personnel and implementing additional controls and processes involving both of our financial personnel in order to ensure all transactions are accounted for and disclosed in an accurate and timely manner. There have not been any other changes in our internal control over financial reporting identified by management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on the Effectiveness of Controls
Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, misstatements, errors, and instances of fraud, if any, within our company have been or will be prevented or detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management or Board override of the control.
The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
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PART II – OTHER INFORMATION
| ITEM 1. | LEGAL PROCEEDINGS. |
We may be subject to legal proceedings in the ordinary course of business. As of the date of this Quarterly Report on Form 10-Q, we are not aware of any legal proceedings to which we are a party that we believe could have a material adverse effect on us.
| ITEM 1A. | RISK FACTORS. |
We are a smaller reporting company as defined by 17 C.F.R. 229 (10)(f)(i) and are not required to provide information under this item.
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Between April 1, 2024 and June 30, 2024 the Company issued 100,000 shares of restricted common stock for services valued at $90,000.
The securities referred to above were issued without registration under the Securities Act of 1933, as amended (the “Securities Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as provided in Rule 506(b) of Regulation D promulgated thereunder. None of the foregoing securities as well as common stock issuable upon conversion or exercise of such securities, have been registered under the Securities Act or any other applicable laws and are deemed restricted securities, and unless so registered may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.
| ITEM 3. | DEFAULT UPON SENIOR SECURITIES. |
None.
| ITEM 4. | MINE SAFETY DISCLOSURES. |
Not applicable.
| ITEM 5. | OTHER INFORMATION. |
(a) None.
(b) There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors since the Company last provided disclosure in response to the requirements of Item 407(c)(3) of Regulation S-K.
(c) Insider Trading Arrangements and Policies
During
the quarter ended September 30, 2024, no director or officer of the Company “
| ITEM 6. | EXHIBITS. |
| Exhibit | Description | |
| 31.1 | Certificate of Principal Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a) | |
| 31.2 | Certificate of Principal Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a) | |
| 32.1 | Certificate of Principal Executive Officer Pursuant to Section 1350 | |
| 32.2 | Certificate of Principal Financial Officer Pursuant to Section 1350 | |
| 101.INS | Inline XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| IVEDA SOLUTIONS, INC. | |
| Date: November 14, 2024 | /s/ David Ly |
| David Ly | |
Chief Executive Officer and Chairman (Principal Executive Officer) | |
| /s/ Robert J. Brilon | |
| Robert J. Brilon | |
Chief Financial Officer (Principal Financial and Accounting Officer) |
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Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO
EXCHANGE ACT RULE 13a-14(a) or RULE 15d-14(a)
(AUTHORIZED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002)
I, David Ly, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Iveda Solutions, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: November 14, 2024 | |
| /s/ David Ly | |
| David Ly | |
| Chief Executive Officer and Chairman | |
| (Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO
EXCHANGE ACT RULE 13a-14(a) or RULE 15d-14(a)
(AUTHORIZED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002)
I, Robert J. Brilon, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of Iveda Solutions, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: November 14, 2024 | |
| /s/ Robert J. Brilon | |
| Robert J. Brilon | |
| Chief Financial Officer | |
| (Principal Financial and Accounting Officer) |
Exhibit 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. § 1350
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)
I, David Ly, Chief Executive Officer (principal executive officer) of Iveda Solutions, Inc. (the “Registrant”), certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 Chief Executive Officer and Chairman of the Sarbanes-Oxley Act of 2002, that, based upon a review of the Quarterly Report on Form 10-Q for the period ended September 30, 2024 of the Registrant (the “Report”):
| (1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant. |
| Date: November 14, 2024 | |
| /s/ David Ly | |
| David Ly | |
| Chief Executive Officer and Chairman | |
| (Principal Executive Officer) |
This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Iveda Solutions, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. §1350
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)
I, Robert J. Brilon, President and Chief Financial Officer (principal financial officer) of Iveda Solutions, Inc. (the “Registrant”), certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based upon a review of the Quarterly Report on Form 10-Q for the period ended September 30, 2024 of the Registrant (the “Report”):
| (1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant. |
| Date: November 14, 2024 | |
| /s/ Robert J. Brilon | |
| Robert J. Brilon | |
| Chief Financial Officer | |
| (Principal Financial and Accounting Officer) |
This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Iveda Solutions, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.