Iveda Solutions Reports $6.0 Million Net Revenue for Fiscal Year 2024, Down 7% from Previous Year

Iveda Solutions, Inc. reported a net revenue of $6.0 million for the fiscal year ending December 31, 2024, a decrease of 7% from $6.5 million in the previous year. The company's revenue breakdown indicated that service revenue accounted for $0.43 million, or 7% of total revenue, while equipment sales and installation contributed $5.6 million, or 93%. The decline in revenue was primarily attributed to decreased equipment sales from Iveda Taiwan, which faced delays in long-term contracts. In contrast, U.S. operations remained stable, generating $0.9 million, a slight increase from the previous year.

The cost of revenue for Iveda Solutions decreased to $4.7 million in 2024, resulting in a gross margin of 22%, compared to a gross margin of 16% in 2023. This improvement was driven by higher-margin sales to smaller customers and a reduction in costs associated with decreased revenue from Iveda Taiwan. Operating expenses rose to $5.4 million, reflecting a 5% increase due to higher marketing and public company-related costs. Consequently, the consolidated loss from operations increased slightly to $4.1 million, while the net loss for the year was reported at $4.0 million, consistent with the previous year's loss.

Strategically, Iveda Solutions continues to focus on its core offerings in AI-driven video surveillance and IoT technologies. The company has emphasized its partnership model, targeting telecommunications companies and technology integrators to expand its market reach. Iveda Taiwan remains a critical component of the business, accounting for 85% of total revenue in 2024, although this was a decrease from 87% in 2023. The company is also actively developing its Cerebro IoT platform, which integrates various smart city technologies, enhancing its product offerings.

Operationally, Iveda Solutions reported a total of 70 customers in 2024, with a significant concentration of revenue from a few key clients. Notably, five customers accounted for approximately 67% of total revenue, highlighting the risks associated with customer concentration. The company has also been investing in its workforce, with a total of 32 employees as of December 31, 2024, including 7 in the U.S. and 25 in Taiwan.

Looking ahead, Iveda Solutions faces challenges related to liquidity and the need for increased revenue generation to support ongoing operations. The company reported cash and cash equivalents of $1.6 million in the U.S. and $1.0 million in Taiwan, down from $2.9 million and $1.8 million, respectively, in the previous year. The management has indicated that its ability to continue as a going concern is dependent on successfully raising additional funds and generating greater revenue. The company has approximately $35 million in net operating loss carryforwards available for federal income tax purposes, which may provide some financial relief in the future.