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 September 30, 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 October 31, 2025
Common Stock, $0.00001 par value per share		5,874,741

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	20
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	27
ITEM 4.	CONTROLS AND PROCEDURES	27
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	28
ITEM 1A.	RISK FACTORS	28
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	28
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	28
ITEM 4.	MINE SAFETY DISCLOSURES	28
ITEM 5.	OTHER INFORMATION	28
ITEM 6.	EXHIBITS	28
SIGNATURES		29

PART 1 – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2025			December 31, 2024
		(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	3,298,474		$	2,629,287
Restricted Cash		32,802			29,013
Accounts Receivable, Net		1,324,086			1,277,635
Deferred Cost of Goods		237,749			507,308
Inventory, Net		247,516			148,120
Other Current Assets		340,592			435,052
Total Current Assets		5,481,219			5,026,415

Property and Equipment, Net		53,201			68,677
Right of Use Asset, Net		159,263
Other Assets		84,696			84,424

Total Assets	$	5,778,379		$	5,179,516

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts and Other Payables	$	1,240,902		$	1,748,857
Short Term Debt		164,134			427,025
Current Portion of Long-Term Debt		131,307			122,007
Current Portion of Lease Liability		40,390
Total Current Liabilities		1,576,733			2,297,889

Long Term Debt		306,382			376,188
Long Term Lease Liability, Net of Current Portion		127,022			-
Total Liabilities		2,010,137			2,674,077

STOCKHOLDERS’ EQUITY
Preferred Stock, $0.00001 par value; 12,500,000 shares authorized, no preferred shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		-			-
Common Stock, $0.00001 par value; 300,000,000 shares authorized; 4,457,444 and 2,808,071 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		45			28
Additional Paid-In Capital		58,736,166			55,962,337
Accumulated Other Comprehensive Loss		(212,027	)		(280,209	)
Accumulated Deficit		(54,755,942	)		(53,176,717	)
Total Stockholders’ Equity		3,768,242			2,505,439

Total Liabilities and Stockholders’ Equity	$	5,778,379		$	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 September 30, 2025			For the Three Months ended September 30, 2024			For the Nine Months ended September 30, 2025			For the Nine Months ended September 30, 2024

REVENUE
Equipment Sales (including sales to Iveda Philippines of $0 and $188,445 for the three and nine months ended September 30, 2025, respectively.	$	1,522,776		$	2,336,590		$	4,380,506		$	4,008,978
Service Revenue		129,011			61,572			273,764			270,005

TOTAL REVENUE		1,651,787			2,398,162			4,654,270			4,278,983

COST OF REVENUE		1,134,510			1,987,680			3,404,012			3,185,443

GROSS PROFIT		517,277			410,482			1,250,258			1,093,540

OPERATING EXPENSES
General & Administrative		705,830			980,165			2,722,229			3,303,397
Research & Development		25,750			39,250			110,250			339,350
Total Operating Expenses		731,580			1,019,415			2,832,479			3,642,747

LOSS FROM OPERATIONS		(214,303	)		(608,932	)		(1,582,221	)		(2,549,207	)

OTHER INCOME (EXPENSE)
Miscellaneous Income (Expense)		(22	)		8,369			32,125			34,157
Interest Income		5,260			24,905			30,801			92,919
Interest Expense		(11,574	)		(5,846	)		(29,487	)		(15,355	)
Total Other Income (Expense), Net		(6,336	)		27,428			33,439			111,721

LOSS BEFORE INCOME TAXES	$	(220,639	)	$	(581,504	)	$	(1,548,782	)	$	(2,437,486	)

PROVISION FOR INCOME TAXES		(665	)		131			(30,443	)		(32,464	)

NET LOSS	$	(221,304	)	$	(581,373	)	$	(1,579,225	)	$	(2,469,950	)

BASIC AND DILUTED LOSS PER SHARE	$	(0.07	)	$	(0.27	)	$	(0.54	)	$	(1.20	)

WEIGHTED AVERAGE SHARES		3,045,753			2,115,307			2,897,887			2,055,649

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

	For the Three Months ended September 30, 2025			For the Three Months ended September 30, 2024			For the Nine months ended September 30, 2025			For the Nine months ended September 30, 2024

Net Loss	$	(221,304	)	$	(581,373	)	$	(1,579,225	)	$	(2,469,950	)
Other Comprehensive Loss
Change in Equity Adjustment from Foreign Currency Translation, Net of Tax		(41,262	)		28,953			68,182			(26,655	)

Comprehensive Loss	$	(262,566	)	$	(552,420	)	$	(1,511,043	)	$	(2,496,605	)

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

Common Stock for Services		12,500		-		90,000			-			-			90,000
Stock Compensation Expense		-		-		25,600			-			-			25,600
Net Loss		-		-		-			(598,981	)					(598,981	)
Comprehensive Loss		-		-		-			-			(21,018	)		(21,018	)
BALANCE AT June 30, 2024		2,033,736	$	20	$	54,062,085		$	(51,084,474	)	$	(277,027	)	$	2,816,204

Common Stock Issued in September 2024 offering		225,000		2		773,998									774,000
Pre-Funded Warrrants – 450,000						1,372,800									1,372,800
Cost of Financing		12,500		-		(312,340	)		-			-			(312,500	)
Reverse Split Fractional shares		149,335		2		(2	)		-			-			-
Net Loss		-		-		-			(581,373	)					(581,373	)
Comprehensive Loss		-		-		-			-			28,701			28,701
BALANCE AT September 30, 2024		2,408,071	$	24	$	56,012,143		$	(51,665,848	)	$	(248,072	)	$	4,098,246

BALANCE AT December 31, 2024		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

Sale of Common Stock		98,655		1		223,594									223,595
Net Loss									(564,249	)					(564,249	)
Comprehensive Loss												120,324			120,324
BALANCE AT June 30, 2025		2,906,726	$	29	$	56,185,931		$	(54,534,638	)	$	(170,765	)	$	1,480,557
BALANCE		2,906,726	$	29	$	56,185,931		$	(54,534,638	)	$	(170,765	)	$	1,480,557

Sale of Common Stock		1,500,718		15		2,482,735									2,482,750
Stock for Services		50,000		1		67,500									67,500
Net Loss									(221,304	)					(221,304	)
Comprehensive Loss												(41,262	)		(41,262	)
BALANCE AT September 30, 2025		4,457,444	$	45	$	58,736,166		$	(54,755,942	)	$	(212,027	)	$	3,768,242
BALANCE		4,457,444	$	45	$	58,736,166		$	(54,755,942	)	$	(212,027	)	$	3,768,242

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDING SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

	September 30, 2025			September 30, 2024
					(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(1,579,225	)	$	(2,469,950	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Depreciation and Amortization		16,062			23,806
Stock Compensation Expense					25,600
Common Stock for Services		67,500			90,000
Changes in operating assets and liabilities
Accounts Receivable		(46,451	)		(1,872,233	)
Inventory		(99,396	)		(971,616	)
Deferred Cost of Goods		269,559			-
Right of Use Asset		23,405			-
Other Current Assets		96,950			(113,064	)
Other Assets		(272	)		208,762
Increase (Decrease) in Accounts and Other Payables		(507,956	)		1,548,762
Lease Liability		(15,256	)		-
Net Cash Used in Operating Activities		(1,775,080	)		(3,529,933	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment		-			(2,615	)
Net Cash Used in Investing Activities		-			(2,615	)

CASH FLOWS FROM FINANCING ACTIVITIES
Payments on Short-Term Debt, net		(335,520	)		(53,135	)
Proceeds from Short-Term Debt		72,629
Proceeds from (Payments on) Long-Term Debt		(60,506	)		541,449
Common Stock Issued, Net of Cost of Financing		2,706,346			1,830,770

Net Cash Provided by Financing Activities		2,382,949			2,319,084

EFFECT OF EXCHANGE RATE CHANGES ON CASH		65,107			(25,607	)

NET DECREASE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS		672,976			(1,239,071	)

Cash, Restricted Cash and Cash Equivalents- Beginning of Period		2,658,300			4,868,282

CASH, RESTRICTED CASH AND CASH EQUIVALENTS - END OF PERIOD	$	3,331,276		$	3,629,211

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

FOR THE NINE MONTHS ENDING SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

	September 30, 2025		September 30, 2024

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid	$	14,732	$	15,355
Income Tax Paid	$	12,434	$	36,942

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Present Value of Right of Use Asset and Lease Obligations on New Lease	$	182,668	$	-

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

IVEDA SOLUTIONS, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDING SEPTEMBER 30, 2025 AND 2024 (UNAUDITED)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Iveda Solutions, Inc. (“Iveda”, or the “Company”) was incorporated in Nevada as Charmed Homes, Inc. in June 2006. On October 15, 2009, IntelaSight, d/b/a Iveda, a Washington corporation, became a wholly owned subsidiary of the Company. In December 2010, IntelaSight merged with and into the Company and the Company became the surviving company. Iveda offered the first cloud hosting of streaming and recorded video from security cameras for its customers and real-time remote surveillance service utilizing intervention specialists to watch our customers’ cameras in real time, 24/7. Iveda offers smart city technologies globally, offering advanced AI-driven video surveillance solutions and a robust suite of Internet of Things (IoT) platforms that power digital transformation for cities and commercial clients worldwide.

Effective April 30, 2011, we completed our acquisition of Sole Vision Technologies (fka MEGAsys and dba Iveda Taiwan), a company based in Taiwan. We consolidate our financial statements with the financial statements of Iveda Taiwan. All intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The unaudited condensed financial statements of the Company for the three and nine months ended September 30, 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.

Going Concern

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates the continuation of the Company as a going concern. The Company experienced net losses and negative operating cash flows during the nine months ended September 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.

At September 30, 2025, the Company had cash on hand in the amount of $3,298,474. Subsequent to September 30, 2025 we raised an additional $2,224,048 net proceeds from the sale of our common shares (See Note 11). Although we believe we now have a strong cash position after the subsequent raise and have experienced an overall improvement in our operations that will result in improved cash flow, Management cannot be certain that its current liquidity will support operations and other future business opportunities 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.

The continuation of the Company as a going concern is dependent upon its ability to obtain necessary debt or equity financing to continue operations until it begins generating positive cash flow. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations in the case of debt financing, or cause substantial dilution for our stockholders, in case of equity financing.

Basis of Accounting

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 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. Accordingly, actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to accounts receivable, deferred cost of revenue, share-based compensation, deferred income taxes, provisions for losses, and inventory reserve, among other items.

Revenue and Expense Recognition

The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers, and all related appropriate guidance. The Company recognizes revenue under the core principle to depict the transfer of control to its customers in an amount reflecting the consideration to which it expects to be entitled. In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company has concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligations is satisfied), which typically occurs at shipment unless installation is required as with certain of our Taiwan sales – see below. Further in determining whether control has been transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Customers do not have a right to return the product other than for warranty reasons for which they would only receive repair services or replacement product. The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions for product sales when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

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

●

The majority of Iveda Taiwan sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the equipment is shipped to the end customer unless the contract requires the inventory to be installed before it can be billed and charged for service when installation or maintenance work is performed. If inventory is shipped to the customer before it is installed the inventory is reclassified to Deferred Cost of Goods.

Revenue for product and software sales without installation is recorded when the product and/or software has been shipped to the customer. Revenue from fixed-price equipment installation contracts, if any, is recognized as the contracts allow for invoicing at various milestones.

General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenue when their realization is deemed earned by the contract.

SEC Form 10-Q filed by Iveda Solutions Inc.