Tue, May 13, 8:16 PM (41 days ago)
**Iveda Solutions, Inc. (IVDA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,474,576 (up 325% YoY) driven by increased equipment sales from Iveda Taiwan due to long-term government contracts. - **Gross Profit:** $288,211 (up 58% YoY) with a gross margin of 20%. - **Net Loss:** $793,672 (down 37% YoY) due to increased revenues and reduced operating expenses. - **Cash Flow:** Net cash used in operating activities was $125,966, primarily due to the net loss offset by collections of accounts receivable. **Profit Margins:** - Gross margin decreased to 20% due to lower-margin government contract sales in Taiwan. - Operating expenses decreased by 26% YoY, primarily due to no significant investor relations campaigns in the US. **Cash Flow:** - Net cash used in operating activities was $125,966, primarily due to the net loss offset by collections of accounts receivable. - Net cash used in investing activities was negligible. - Net cash provided by financing activities was minimal. **Earnings Changes:** - The decrease in net loss was primarily due to increased revenues and related gross margins and reduction in operating expenses. **Quarterly Performance Discussion:** - The increase in revenue was primarily due to increased equipment sales from Iveda Taiwan. - The decrease in overall gross margin was primarily attributed to the lower margin larger government contract sales in Taiwan. - The net decrease in operating expenses in the three months ended March 31, 2025, compared with the same period in 2024, is due primarily to no significant investor relations campaigns in the US based operations during this period. **Trends and Uncertainties:** - Iveda is positioned to benefit from the growing smart cities, AI, and IoT markets. - The company faces uncertainties related to its ability to generate positive cash flow and secure additional financing. - Iveda has experienced significant operating losses and has a substantial accumulated deficit. **Future Operations Impact:** - Iveda's continuation as a going concern is dependent on its ability to generate greater revenue through increased sales and/or raise additional funds. - The company is working to remediate material weaknesses in its internal control over financial reporting. **Key Metrics:** - Cash and cash equivalents: $2,519,088 (down from $2,629,287 in Q4 2024). - Accounts receivable: $819,750 (down from $1,277,635 in Q4 2024). - Total assets: $4,528,325 (down from $5,179,516 in Q4 2024). - Total liabilities: $2,827,438 (up from $2,674,077 in Q4 2024). - Stockholders' equity: $1,700,887 (down from $2,505,439 in Q4 2024).