UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to ____________

Commission File No. 000-53285

IVEDA SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Delaware		20-2222203
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1744 S Val Vista, Suite 213
Mesa, Arizona		85204
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (480) 307-8700

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.00001 per share

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

	Large accelerated filer ☐		Accelerated filer ☐
	Non-accelerated filer ☒		Smaller reporting company ☒
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes ☐ No ☒

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value per share	IVDA	The Nasdaq Stock Market LLC
Common Stock Purchase Warrants	IVDAW	The Nasdaq Stock Market LLC

Class		Outstanding as of April 30, 2025
Common Stock, $0.00001 par value per share		2,808,071

TABLE OF CONTENTS

		Page
	PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
ITEM 4.	CONTROLS AND PROCEDURES	28
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	30
ITEM 1A.	RISK FACTORS	30
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	30
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	30
ITEM 4.	MINE SAFETY DISCLOSURES	30
ITEM 5.	OTHER INFORMATION	31
ITEM 6.	EXHIBITS	31
SIGNATURES		32

PART 1 – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2025			December 31, 2024

ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	2,490,482		$	2,629,287
Restricted Cash		28,606			29,013
Accounts Receivable, Net		819,750			1,277,635
Deferred Cost of Goods		359,388			507,308
Inventory, Net		217,628			148,120
Other Current Assets		296,799			435,052
Total Current Assets		4,212,653			5,026,415

Property and Equipment, Net		64,597			68,677
Right of Use Asset, Net		179,354
Other Assets		71,721			84,424

Total Assets	$	4,528,325		$	5,179,516

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts and Other Payables	$	1,719,848		$	1,748,857
Short Term Debt		464,934			427,025
Current Portion of Long-Term Debt		120,294			122,007
Current Portion of Lease Liability		33,504
Total Current Liabilities		2,338,580			2,297,889

Long Term Debt		340,831			376,188
Long Term Lease Liability, Net of Current Portion		148,027			-
Total Liabilities		2,827,438			2,674,077

STOCKHOLDERS’ EQUITY
Preferred 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		-			-
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		28			28
Additional Paid-In Capital		55,962,337			55,962,337
Accumulated Other Comprehensive Loss		(291,089	)		(280,209	)
Accumulated Deficit		(53,970,389	)		(53,176,717	)
Total Stockholders’ Equity		1,700,887			2,505,439

Total Liabilities and Stockholders’ Equity	$	4,528,325		$	5,179,516

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months ended March 31, 2025 (Unaudited)			For the Three Months ended March 31, 2024 (Restated)

REVENUE
Equipment Sales	$	1,408,732		$	227,038
Service Revenue		65,844			119,728

TOTAL REVENUE		1,474,576			346,766

COST OF REVENUE		1,186,365			164,886

GROSS PROFIT		288,211			181,880

OPERATING EXPENSES
General & Administrative		1,090,770			1,325,359
Research & Development		33,000			188,400
Total Operating Expenses		1,123,770			1,513,759

LOSS FROM OPERATIONS		(835,559	)		(1,331,879	)

OTHER INCOME (EXPENSE)
Miscellaneous Income (Expense)		32,422			25,318
Interest Income		15,261			52,595
Interest Expense		(5,796	)		(4,285	)
Total Other Income (Expense), Net		41,887			73,628

LOSS BEFORE INCOME TAXES		(793,672	)		(1,258,251	)

PROVISION FOR INCOME TAXES		-			(31,345	)

NET LOSS	$	(793,672	)	$	(1,289,596	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.28	)	$	(0.64	)

WEIGHTED AVERAGE SHARES		2,808,071			2,021,237

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS

(UNAUDITED)

	For the Three Months ended March 31, 2025			For the Three Months ended March 31, 2024
				(Restated)
Net Loss	$	(793,672	)	$	(1,289,596	)
Other Comprehensive Loss
Change in Equity Adjustment from Foreign Currency Translation, Net of Tax		(10,880	)		(34,591	)

Comprehensive Loss	$	(804,552	)	$	(1,324,187	)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

											Accumulated
			Common		Additional						Other			Total
	Common		Stock		Paid-in-			Accumulated			Comprehensive			Stockholders’
	Stock		Amount		Capital			Deficit			(Loss)			Equity

BALANCE AT December 31, 2023		2,021,236	$	20	$	54,065,775		$	(49,195,897	)	$	(221,418	)	$	4,648,480

Cost of Financing		-		-		(3,690	)		-			-			(3,690	)

Net Loss, Restated		-		-		-			(1,289,596	)		-			(1,289,596	)
Comprehensive Loss		-		-		-			-			(34,591	)		(34,591	)
BALANCE AT March 31, 2024, Restated		2,021,236	$	20	$	54,062,085		$	(50,485,493	)	$	(256,009	)	$	3,320,603

BALANCE AT December 31, 2024		2,808,071	$	28	$	55,962,337		$	(53,176,717	)	$	(280,209	)	$	2,505,439
BALANCE		2,808,071	$	28	$	55,962,337		$	(53,176,717	)	$	(280,209	)	$	2,505,439

Net Loss		-		-		-			(793,672	)		-			(793,672	)
Comprehensive Loss		-		-		-			-			(10,880	)		(10,880	)
BALANCE AT March 31, 2025		2,808,071	$	28	$	55,962,337		$	(53,970,389	)	$	(291,089	)	$	1,700,887
BALANCE		2,808,071	$	28	$	55,962,337		$	(53,970,389	)	$	(291,089	)	$	1,700,887

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

	March 31, 2025			March 31, 2024
				(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(793,672	)	$	(1,289,596	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Depreciation and Amortization		7,285			7,900
Changes in operating assets and liabilities
Accounts Receivable		457,885			67,390
Inventory		(69,508	)		(177,843	)
Deferred Cost of Goods		147,920			-
Right of Use Asset		3,314			-
Other Current Assets		138,253			(130,269	)
Other Assets		12,704			177,855
Increase (Decrease) in Accounts and Other Payables		(29,010	)		51,090
Lease Liability		(1,137	)		-
Net Cash Used in Operating Activities		(125,966	)		(1,293,473	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase (Sale) of Property and Equipment		109			-
Net Cash Used in Investing Activities		109			-

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (Payments on ) Short-Term Debt, net		37,909			(85,955	)
Proceeds from (Payments on) Long-Term Debt		(37,070

SEC Form 10-Q filed by Iveda Solutions Inc.