Iveda Solutions, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing significant changes in revenue and profitability compared to the previous fiscal period. For the third quarter of 2024, total revenue reached $2.40 million, a substantial increase of 175% from $872,762 in the same quarter of 2023. This growth was primarily driven by equipment sales and installation revenue, which constituted 97% of total revenue, amounting to $2.34 million, compared to 90% in the prior year.

Despite the revenue increase, Iveda experienced a net loss of $574,342 for Q3 2024, an improvement from a net loss of $852,340 in Q3 2023, reflecting a 33% reduction in losses. The gross profit for the quarter was $410,482, with a gross margin of 17%, slightly up from 16% in the previous year. Operating expenses decreased by 3% to $1.01 million, contributing to the reduced loss from operations of $601,837, down from $906,849 in Q3 2023.

For the nine months ended September 30, 2024, total revenue was $4.28 million, a decline of 22% from $5.47 million in the same period of 2023. The net loss for this period was $2.20 million, a slight increase from $2.14 million in the prior year. The gross margin improved to 26%, up from 17% in the previous year, despite total costs of revenue decreasing to $3.2 million from $4.6 million.

Iveda's balance sheet as of September 30, 2024, showed total assets of $9.06 million, up from $7.26 million at the end of 2023. Current assets increased significantly, driven by a rise in accounts receivable and inventory. Cash and cash equivalents decreased to $3.60 million from $4.75 million at year-end 2023, primarily due to operating losses, although the company raised $2.32 million through financing activities.

The company continues to focus on its core operations in real-time IP video surveillance technologies and IoT devices, with strategic developments including the deployment of its IvedaAI intelligent video search technology. Iveda has also been transitioning its business model from project-based sales to a licensing model, which allows for dual revenue streams from hardware sales and monthly licensing fees.

As of September 30, 2024, Iveda reported an accumulated deficit of $(50.1) million, reflecting ongoing challenges in achieving profitability. The company has acknowledged the need for improved financial controls and plans to enhance its accounting personnel to ensure compliance with SEC reporting requirements.