What changed in Iveda Solutions, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of Iveda Solutions, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+43 added−61 removedSource: 10-K (2026-03-31) vs 10-K (2025-04-15)
Top changes in Iveda Solutions, Inc.'s 2025 10-K
43 paragraphs added · 61 removed · 33 edited across 1 sections
- Item 1C. Cybersecurity+43 / −61 · 33 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
33 edited+10 added−28 removed83 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
33 edited+10 added−28 removed83 unchanged
2024 filing
2025 filing
Biggest changeITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Reference is made to our consolidated financial statements, the notes thereto, and the report thereon, commencing on page F-1 of this Annual Report on Form 10-K, which consolidated financial statements, notes, and report are incorporated herein by reference.
Biggest changeITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Reference is made to our consolidated financial statements, the notes thereto, and the report thereon, commencing on page F-1 of this Annual Report on Form 10-K, which consolidated financial statements, notes, and report are incorporated herein by reference. 32 ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE On May 9, 2024, the Company dismissed BF Borgers CPA PC as the Company’s independent registered public accounting firm, effective immediately, as a result of the entry of an order by the Securities and Exchange Commission (the “ Commission ”) on May 3, 2024 (the “ Order ”), instituting settled administrative and cease-and-desist proceedings against BF Borgers CPA PC and its sole audit partner Benjamin F.
Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2024, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is 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.
Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is 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.
Based on that evaluation under this framework, our management concluded that as of December 31, 2024, our internal control over financial reporting was not effective because of the following material weaknesses: The material weaknesses identified include (i) the Company had inadequate segregation of duties consistent with control objectives and (ii) the Company had an insufficient number of personnel with an appropriate level of U.S.
Based on that evaluation under this framework, our management concluded that as of December 31, 2025, our internal control over financial reporting was not effective because of the following material weaknesses: The material weaknesses identified include (i) the Company had inadequate segregation of duties consistent with control objectives and (ii) the Company had an insufficient number of personnel with an appropriate level of U.S.
The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2024 and 2023, was estimated using the “minimum value method” as prescribed by the original provisions of ASC 718, “Accounting for Stock-Based Compensation” and therefore, no compensation expense was recognized for these awards in accordance with ASC 718.
The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2025 and 2024, was estimated using the “minimum value method” as prescribed by the original provisions of ASC 718, “Accounting for Stock-Based Compensation” and therefore, no compensation expense was recognized for these awards in accordance with ASC 718.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting during the year ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 33 Inherent Limitations on Effectiveness of Controls Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting during the year ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 33 Inherent Limitations on Effectiveness of Controls Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
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.
We also had approximately $9.0 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.
(c) Insider Trading Arrangements and Policies During the quarter ended December 31, 2024, no director or officer of the Company “ adopted ” or “ terminated ” a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation S-K.
(c) Insider Trading Arrangements and Policies During the quarter ended December 31, 2025, no director or officer of the Company “ adopted ” or “ terminated ” a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408 of Regulation S-K.
As of December 31, 2024, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework of 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments.
As of December 31, 2025, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework of 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments.
Under this transition method, stock-based compensation expense for the years ended December 31, 2024 and 2023 includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718.
Under this transition method, stock-based compensation expense for the years ended December 31, 2025 and 2024 includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718.
ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Iveda has been offering real-time IP video surveillance technologies to our customers since 2005.
ITEM 6 – RESERVED ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview Iveda has been offering real-time IP video surveillance technologies to our customers since 2005.
For our U.S.-based segment, we had no doubtful accounts receivable allowances for the years ended December 31, 2024 and 2023, respectively. For our Taiwan-based segment, we set up no doubtful accounts receivable allowances for the years ended December 31, 2024 and 2023, respectively.
For our U.S.-based segment, we had no doubtful accounts receivable allowances for the years ended December 31, 2025 and 2024, respectively. For our Taiwan-based segment, we set up no doubtful accounts receivable allowances for the years ended December 31, 2025 and 2024, respectively.
At December 31, 2024, we had approximately $35 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 2024 or 2023.
At December 31, 2025, we had approximately $40 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 2025 or 2024.
For the years ended December 31, 2024 and 2023, Iveda Taiwan’s operations accounted for 93% and 71% of our total revenue, respectively.
For the years ended December 31, 2025 and 2024, Iveda Taiwan’s operations accounted for 93% and 71% of our total revenue, respectively.
Iveda Taiwan leases its principal executive offices in Taiwan, comprised of three suites totaling approximately 4,567 square feet. Iveda Taiwan pays an aggregate of approximately $3,147 per month under the terms of the three leases, which expire on June 30, 2025, September 15, 2025 and September 11, 2025.
Iveda Taiwan leases its principal executive offices in Taiwan, comprised of three suites totaling approximately 4,567 square feet. Iveda Taiwan pays an aggregate of approximately $3,272 per month under the terms of the three leases, which expire on June 30, 2026, September 15, 2026 and September 11, 2026.
ITEM 2 – PROPERTIES We currently rent for our principal executive offices approximately 3,000 square feet until February 2025 for approximately $6,000 per month. In February 2025 we have renewed our lease for an additional five years under similar terms and conditions. We believe that our current office space is adequate for the foreseeable future.
ITEM 2 – PROPERTIES We currently rent for our principal executive offices approximately 3,000 square feet until February 2030 for approximately $4,500 per month. In February 2025 we renewed our lease for an additional five years under similar terms and conditions. We believe that our current office space is adequate for the foreseeable future.
We recognized $122,600 and $104,600 of stock-based compensation expense for the years ended December 31, 2024 and 2023, respectively. 32 ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are a smaller reporting company as defined by Item 10(f) of Regulation S-K and are not required to provide the information otherwise required under this item.
We recognized $376,000 and $122,600 of stock-based compensation expense for the years ended December 31, 2025 and 2024, respectively. ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are a smaller reporting company as defined by Item 10(f) of Regulation S-K and are not required to provide the information otherwise required under this item.
We do no t presently have any general processes for assessing, identifying, and managing material risks from cybersecurity threats.
We do not presently have any general processes for assessing, identifying, and managing material risks from cybersecurity threats.
Liquidity and Capital Resources As of December 31, 2024, we had cash and cash equivalents of $1.6 million in our U.S.-based segment and $1.0 million in our Taiwan-based segment, compared to $2.9 million in our U.S.-based segment and $1.8 million in our Taiwan-based segment as of December 31, 2023.
Liquidity and Capital Resources As of December 31, 2025, we had cash and cash equivalents of $3.9 million in our U.S.-based segment and $1.3 million in our Taiwan-based segment, compared to $1.6 million in our U.S.-based segment and $1.0 million in our Taiwan-based segment as of December 31, 2024.
All of 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. ITEM 6 – SELECTED FINANCIAL DATA Not applicable.
All of 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.
Net cash used in operating activities during the year ended December 31, 2024 was $4.4 million compared to $3.3 million net cash used during the year ended December 31, 2023.
Net cash used in operating activities during the year ended December 31, 2025 was $2.0 million compared to $4.4 million net cash used during the year ended December 31, 2024.
We currently intend to retain all earnings, if any, to finance the growth and development of our business. We do not anticipate paying any cash dividends in the foreseeable future.
Dividend Policy We have never paid a cash dividend on our common stock. We currently intend to retain all earnings, if any, to finance the growth and development of our business. We do not anticipate paying any cash dividends in the foreseeable future.
This decrease in our cash and cash equivalents is primarily a result of the cash used in operating activities of $4.4 million during the year ended December 31, 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.
This increase in our cash and cash equivalents is primarily a result of the cash provided from the sale of securities of $5.2 million during the year ended December 31, 2025. 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 by investing activities during the year ended December 31, 2023 was $0.30 million. 30 Net cash provided by financing activities for the year ended December 31, 2024 was $2.3 million compared with $1.0 million provided during the year ended December 31, 2023.
Net cash used in investing activities for the year ended December 31, 2025 and 2024 was minimal. 30 Net cash provided by financing activities for the year ended December 31, 2025 was $4.6 million compared with $2.3 million provided during the year ended December 31, 2024.
Net cash provided by financing activities in 2024 is primarily a result of the $1.7 million net direct offering of Common Stock and Pre-Funded warrants at $3.44 per share.
Net cash provided by financing activities in 2025 is primarily a result of the $4.9 million At-The-Market (ATM) offering of Common Stock. Net cash provided by financing activities in 2024 is primarily a result of the $1.7 million net direct offering of Common Stock and Pre-Funded warrants at $3.44 per share. We have experienced significant operating losses since our inception.
Revenue and Expense Recognition We recognize revenue when (1) persuasive evidence of an arrangement exists, (2) title transfer has occurred, (3) the price is fixed or readily determinable, and (4) collectability is reasonably assured.
The expected life of options and warrants is based on the average of three public companies offering services similar to ours. Revenue and Expense Recognition We recognize revenue when (1) persuasive evidence of an arrangement exists, (2) title transfer has occurred, (3) the price is fixed or readily determinable, and (4) collectability is reasonably assured.
The Company believes that each of such issuances was exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act and/or Regulation S under the Securities Act. Between January 1, 2022 and December 31, 2022 the Company issued 8,215 shares of common stock to warrant holders upon exercise of $23,000 in proceeds.
The Company believes that each of such issuances was exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act and/or Regulation S under the Securities Act. Between January 1, 2023 and December 31, 2023 the Company issued 19,656 shares of restricted common stock for services valued at $138,547.
The Series A Warrants will expire five years following the Stockholder Approval and the Series B Warrants will expire 18 months following the Stockholder Approval. Between January 1, 2024 and December 31, 2024 the Company issued 12,500 shares of restricted common stock for services valued at $90,000.
Between January 1, 2024 and December 31, 2024 the Company issued 12,500 shares of restricted common stock for services valued at $90,000. Between January 1, 2025 and December 31, 2025 the Company issued 100,000 shares of restricted common stock for services valued at $135,000.
Net cash used in operating activities for the year ended December 31, 2023 consisted primarily of the $4.1 million net loss including $0.3 million of non-cash charges (primarily stock option compensation and common stock issued for investor relations services), $0.1 million of Taiwan vendor deposits, prepaids and advances to suppliers and $0.6 million net payments for accounts payable and accrued operating and interest expenses with an offsetting $0.8 million collection of accounts receivable Net cash used in investing activities for the year ended December 31, 2024 was minimal.
Net cash used in operating activities for the year ended December 31, 2025 consisted primarily of the $3.2 million net loss including $0.5 million of non-cash charges (primarily stock option compensation and common stock issued for investor relations services), and $0.8 million net decrease of accounts payable and accrued operating expenses.
Security Holders As of December 31, 2024, we had 2,808,071 shares of our common stock outstanding held by 96 shareholders of record, 0 shares of our Series A Preferred Stock outstanding and 0 shares of our series B Preferred Stock. Dividend Policy We have never paid a cash dividend on our common stock.
Security Holders As of December 31, 2025, we had 5,879,741 shares of our common stock, par value $0.00001, issued and outstanding held by 96 shareholders of record and approximately 25,000 beneficial owners, 0 shares of our Series A Preferred Stock outstanding and 0 shares of our series B Preferred Stock.
Loss from Operations Consolidated Loss from operations increased to $4.1 million for the year ended December 31, 2024, compared with $4.0 million for the year ended December 31, 2023, an increase of $0.1 million, or 2%. A majority of the increase in loss from operations was primarily due to a minimal increase in operating expenses offset by increased gross margins.
A majority of the decrease in loss from operations was primarily due to the reduction in operating expenses. The decrease in net loss was primarily due to a reduction in operating expenses for the year ended December 31, 2025, compared to the same period in 2024.
See the High and Low Bid data below: Fiscal Year 2024 High Bid Low Bid First Quarter $ 2.91 $ 0.57 Second Quarter $ 1.90 $ 1.04 Third Quarter $ 1.15 $ 0.74 Fourth Quarter $ 8.05 $ 1.27 Fiscal Year 2023 High Bid Low Bid First Quarter $ 10.16 $ 4.40 Second Quarter $ 7.60 $ 3.60 Third Quarter $ 4,56 $ 1.51 Fourth Quarter $ 7.60 $ 4.56 As of December 31, 2024, we had 2,808,071 shares of our Common Stock, par value $0.00001, issued and outstanding.
See the High and Low Bid data below: Fiscal Year 2025 High Bid Low Bid First Quarter $ 7.14 $ 1.80 Second Quarter $ 3.13 $ 1.71 Third Quarter $ 2.57 $ 1.15 Fourth Quarter $ 2.24 $ 0.71 Fiscal Year 2024 High Bid Low Bid First Quarter $ 2.91 $ 0.57 Second Quarter $ 1.90 $ 1.04 Third Quarter $ 1.15 $ 0.74 Fourth Quarter $ 8.05 $ 1.27 There is limited trading activity in our securities, and there can be no assurance that a regular trading market for our common stock will be sustained.
New Accounting Standards See Financial Statement Footnotes for discussion. 29 Results of Operations for the Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 Net Revenue We recorded net consolidated revenue of $6.0 million for the year ended December 31, 2024, compared with $6.5 million for the year ended December 31, 2023, a decrease of ($0.5) million, or (7%).
New Accounting Standards See Financial Statement Footnotes for discussion. 29 Results of Operations for the Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 The table below sets forth the Net Revenue, Cost of Goods Sold, Operating Expenses, Other Income and Expenses, Tax Expense and Net Income by segment for each of the respective periods and a comparison period over period.
The decrease in cost of revenue was primarily driven by decreased Iveda Taiwan revenue. The increase in overall gross margin was also primarily attributed to higher margin sales to smaller customers within Iveda Taiwan revenue and higher margin service revenue maintaining during 2024.
The overall gross margin had a slight increase attributed to the higher margin contract sales in Iveda Taiwan.
Removed
There were approximately 25,000 beneficial owners of our Common Stock. There is limited trading activity in our securities, and there can be no assurance that a regular trading market for our common stock will be sustained.
Added
On February 11, 2026, the Company consummated a public offering of (i) 5,259,999 shares of the Company’s common stock, par value $0.00001 per share at an offering price of $0.35 per share of common stock, and (ii) pre-funded warrants to purchase up to 454,287 shares of common stock, at an offering price of $0.3499 per pre-funded warrant and (iii) accompanying series x warrants to purchase up to 11,428,572 shares of common stock and accompanying Series X Warrants.
Removed
Between January 1, 2023 and December 31, 2023 the Company issued 19,656 shares of restricted common stock for services valued at $138,547.
Added
H.C. Wainwright & Co., LLC acted as the placement agent in connection with the offering and received a cash fee of 7% in the amount of $140,000 and was issued placement agent warrants to purchase up to 400,000 shares of common stock.
Removed
On September 6, 2024, the Company agreed to sell and issue to investors unregistered Series A Common Stock Purchase Warrants (the “Series A Warrants”) to purchase up to 5,000,000 shares of Common Stock and unregistered Series B Common Stock Purchase Warrants (the “Series B Warrants,” and collectively with the Series A Warrants, the “Common Warrants”) to purchase up to 5,000,000 shares of Common Stock.
Added
The shares of common stock, pre-funded warrants, series x warrants, placement agent warrants, and the shares of common stock underlying the pre-funded warrants, series x warrants, and placement agent warrants issued in the offering were offered pursuant to the Company’s registration statement on Form S-1, as amended (File No. 333-293126) initially filed with the SEC under the Securities Act, on February 2, 2026, and declared effective by the SEC on February 9, 2026.
Removed
The Common Warrants will be exercisable on the effective date the Company obtains stockholder approval (the “Stockholder Approval”) of the issuance of the shares underlying the exercise of the Common Warrants (the “Common Warrant Shares”), at an exercise price of $0.43 per share.
Added
Consolidated US Taiwan Consolidated US Taiwan Consolidated US Taiwan Year ended December 31, 2025 Year ended December 31, 2024 Comparison of Year ended December 31, 2025 and 2024 Revenues $ 5,280,312 $ 709,197 $ 4,571,115 $ 6,020,639 $ 869,261 $ 5,151,378 $ (740,327 ) (12 )% $ (160,064 ) (18 )% $ (580,263 ) (11 )% Cost of Goods Sold 4,007,440 545,438 3,462,002 4,719,005 615,010 4,103,995 (711,565 ) (15 )% (69,572 ) (11 )% (641,993 ) (16 )% Gross Profit 1,272,872 163,759 1,109,113 1,301,634 254,251 1,047,383 (28,762 ) (2 )% (90,492 ) (36 )% 61,730 6 % 24 % 23 % 24 % 22 % 29 % 20 % Operating Expenses Salaries and Payroll Expenses 1,699,049 1,026,934 672,115 1,667,330 967,793 699,537 31,719 2 % 59,141 6 % (27,422 ) (4 )% Pension 21,832 21,832 (21,832 ) (100 )% Travel and Entertainment 477,125 412,747 64,378 552,123 483,146 68,977 (74,998 ) (14 )% (70,399 ) (15 )% (4,599 ) (7 )% Stock-based compensation 376,000 376,000 122,600 122,600 253,400 207 % 253,400 207 % - Marketing 338,469 338,469 757,736 757,736 (419,267 ) (55 )% (419,267 ) (55 )% - Public Company expenses 245,448 245,448 520,966 520,966 (275,518 ) (53 )% (275,518 ) (53 )% - Audit and Accounting 334,264 334,264 312,920 312,920 21,344 7 % 21,344 7 % - Consulting Services 326,339 326,339 412,962 412,962 (86,623 ) (21 )% (86,623 ) (21 )% - Research and Development 170,800 170,800 363,350 363,350 (192,550 ) (53 )% (192,550 ) (53 )% - Software Subscription 84,750 84,750 85,111 85,111 (361 ) 0 % (361 ) 0 % - Insurance 82,973 18,604 64,396 60,873 12,664 48,209 22,100 36 % 5,940 47 % 16,187 34 % Rent 88,534 43,434 45,100 142,986 101,731 41,255 (54,452 ) (38 )% (58,297 ) (57 )% 3,845 9 % Office Supplies and Postage - 34,276 34,276 0 % Other operating expenses 275,990 111,601 164,389 316,872 215,849 101,023 (40,882 ) (13 )% (104,248 ) (48 )% 63,366 63 % Total Operating Expenses 4,499,768 3,489,390 1,010,378 5,371,937 4,356,828 1,015,109 (935,169 ) (17 )% (867,438 ) (20 )% (4,731 ) 0 % Income (Loss) from Operations (3,226,896 ) (3,325,631 ) 98,735 (4,070,303 ) (4,102,577 ) 32,274 843,407 (21 )% 776,946 (19 )% 66,461 206 % Interest Income and Other (Expenses), net 59,268 61,659 (2,391 ) 121,868 95,330 26,538 (62,600 ) (51 )% (33,671 ) (35 )% (28,929 ) (109 )% Net loss before Income Tax (3,167,628 ) (3,263,972 ) 96,344 (3,948,435 ) (4,007,247 ) 58,812 843,807 (21 )% 743,275 (19 )% 37,532 64 % Provision For Income Taxes (30,484 ) (50 ) (30,434 ) (32,385 ) (1,697 ) (30,688 ) 1,901 (6 )% 1,647 (97 )% 254 (1 )% Net Income (Loss) (3,198,112 ) (3,264,022 ) 65,910 (3,980,820 ) (4,008,944 ) 28,124 782,708 (20 )% 744,922 (19 )% 37,786 134 % The decrease in revenue for the year ended December 31, 2025, compared with the same period in 2024 is attributable primarily to decreased equipment sales from Iveda Taiwan as a result of delivery timing related to long-term government contracts and a decreased US revenues through its distributors.
Removed
For the year ended December 31, 2024, our service revenue was $0.43 million, or 7% of net revenue, and our equipment sales and installation revenue was $5.6 million, or 93% of net revenue.
Added
The net decrease in operating expenses in the year ended December 31, 2025, compared with the same period in 2024 is due primarily to a reduction in R&D expense in the US, reduction in public company expenses and no significant investor relations campaigns in the US based operations during this period.
Removed
In fiscal 2023, our service revenue was $0.44 million, or 7% of consolidated net revenue, and our equipment sales and installation revenue was $6.1 million, or 93% of net revenue.
Added
Borgers CPA (individually and together, “ BF Borgers ”). The Company’s Audit Committee (the “ Committee ”) unanimously voted in favor of dismissal of BF Borgers and the Company’s Board of Directors (the “ Board ”) agreed with such recommendation.
Removed
The decrease in total revenue in 2024 compared with the same period in fiscal 2023 is attributable primarily to decreased equipment sales from Iveda Taiwan as a result of delays of long-term contracts awarded and started during 2024.
Added
On May 10, 2024, after review and recommendation of the Committee, appointed Kreit & Chiu CPA LLP (“Kreit”) as the Company’s new independent registered public accounting firm for and with respect to the year ending December 31, 2024. On February 21, 2025, the Company dismissed Kreit & Chiu CPA LLP (“Kreit”) as the Company’s independent registered public accounting firm.
Removed
Revenue for the US operations were $0.9 million for the year ended December 31, 2024, compared with $0.9 million for the year ended December 31, 2023, a slight increase of 2%.
Added
During the Company’s 2024 interim periods reviewed by Kreit through the date of the dismissal, the Company is of the opinion that: there were no (a) disagreements with Kreit on any matter of accounting principles or practices, financial statement disclosures, or auditing scope or procedure, which disagreements, if not resolved to Kreit’s satisfaction, would have caused Kreit to make reference to the subject matter thereof; or (b) reportable events, as described under Item 304(a)(1)(v) of Regulation S-K.
Removed
Revenue for the Taiwan operations were $5.2 million for the year ended December 31, 2024, compared with $5.6 million for the year ended December 31, 2023, a decrease of ($0.5) million, or (9%). This decrease in revenue in 2024 compared with 2023 is due primarily to timing of completion of large projects at year end.
Added
On February 21, 2025, after review and recommendation of the Committee, the Company appointed Weinberg & Company, P.A., Certified Public Accountants (“Weinberg”) as the Company’s new independent registered public accounting firm.
Removed
Cost of Revenue Total cost of revenue was $4.7 million (78% of revenue; gross margin of 22%) for the year ended December 31, 2024, compared with $5.4 million (84% of revenue; 16% gross margin) for the year ended December 31, 2023, a decrease of $0.7 million, or 54%.
Added
A copy of the Company’s insider trading policy is attached as Exhibit 19.1 hereto.
Removed
Cost of revenue for the US operations were $0.6 million for the year ended December 31, 2024, compared with $0.9 million for the year ended December 31, 2023, a decrease of $0.3 million, or 33%.
Removed
This net decrease in cost of revenue in 2024 compared with 2023 is due primarily related to an increase in sales to our distribution partners in the US with better margins than prior year revenue.
Removed
Cost of revenue for the Taiwan operations were $4.1 million for the year ended December 31, 2024, compared with $4.5 million for the year ended December 31, 2023, the decrease in cost of revenue was related to the decrease in revenue and the margins remained consistent.
Removed
Operating Expenses Operating expenses for the consolidated operations were $5.4 million for the year ended December 31, 2024, compared with $5.1 million for the year ended December 31, 2023, an increase of $0.3 million, or 5%.
Removed
This net increase in operating expenses in 2024 compared with 2023 is due primarily related to increases in marketing and public company related expenses including audit cost increases related to changing auditors.
Removed
Operating expenses for the US operations were $4.3 million for the year ended December 31, 2024, compared with $4.1 million for the year ended December 31, 2023, an increase of $0.2 million, or 5%.
Removed
This net increase in operating expenses in 2024 compared with 2023 is due primarily related to a increases in marketing and public company related expenses including audit cost increases related to changing auditors.
Removed
Operating expenses for the Taiwan operations were $1.0 million for the year ended December 31, 2024, compared with $1.0 million for the year ended December 31, 2023, there were no significant fluctuations in the Taiwan operating expenses in 2024 compared with 2023.
Removed
US loss from operations decreased to $4.1 million for the year ended December 31, 2024, compared with $4.2 million for the year ended December 31, 2023, a decrease of $0.1 million, or 2%.
Removed
Iveda Taiwan income from operations decreased to $0.03 million for the year ended December 31, 2024, compared with $0.14 million for the year ended December 31, 2023, a decrease of $0.11 million, or 77%. A majority of the decrease in income from operations was primarily due to a reduction in revenue of $0.5 million for 2024.
Removed
Other Income (Expense)-Net Other income (expense)-net was $0.12 million other income for the year ended December 31, 2024, compared with ($0.08) million other expense for the year ended December 31, 2023. The majority of the other income in 2024 is interest income from cash balances and 2023 income was offset by the $0.18 loss from investment in Iveda Phils JV.
Removed
Net Loss Net loss was $4.0 million for the year ended December 31, 2024, compared with $4.1 million for the year ended December 31, 2023. The consistent amount in net loss was caused primarily from the offsetting effects of increased operating expenses and increased gross margins.
Removed
Net cash provided by financing activities in 2023 is primarily a result of the $1.3 million issuance of Common Stock from the exercise of warrants issued during the August 2022 offering at $11.20. We have experienced significant operating losses since our inception.
Removed
The expected life of options and warrants is based on the average of three public companies offering services similar to ours. Impairment of Long-Lived Assets We have a relatively minimal amount of property and equipment, consisting primarily of office equipment.
Removed
We review the recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.
Removed
Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset.
Removed
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. We did not make any impairment for the years ended December 31, 2024 and 2023.
Removed
ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.