Iveda Solutions (IVDA) risk factors, FY2024 10-K

Risks Related to Our Company and Business

1. 01Our financial statements contain a going concern opinion
2. 02We Have Incurred Significant Net Losses Since Our Inception And May Not Be Able To Achieve Or Maintain Profitability On An Annual Basis In The Future
3. 03We Depend On Certain Key Personnel
4. 04Demand For Our Products May Be Lower Than We Anticipate
5. 05We are currently targeting the sale of our Products to telecommunications companies and technology and systems integrators. Our strategy to target those organizations is based upon their interest and a number of assumptions, some or all of which could prove to be incorrect
6. 06We Believe Industry Trends Support Our Open Source Systems, But If Trends Reverse We May Experience Decreased Demand
7. 07A Relatively Small Number Of Key Customers Account For A Significant Portion Of Our Revenue
8. 08We Rely On Iveda Taiwan, Our Taiwan Subsidiary, For A Significant Portion Of Our Revenue
9. 09Rapid Growth May Strain Our Resources
10. 10We Depend On Third Party Manufacturers and Suppliers For The Products We Sell
11. 11We Operate In A Highly Competitive Industry And Our Failure To Compete Effectively May Adversely Affect Our Ability To Generate Revenue
12. 12If Our Information Security Measures Are Breached And Unauthorized Access Is Obtained, Existing And Potential Service Providers May Not Perceive Our Software And Services As Being Secure And May Terminate Their Licensing Agreements Or Fail To Order Additional Products And Services
13. 13Our Property And Business Interruption Insurance Coverage Is Limited And May Not Compensate Us Fully For Losses That May Occur As A Result Of A Disruption To Our Business
14. 14The Timing Of Our Revenue Can Vary Depending On How Long Customers Take To Evaluate Our Platform
15. 15We Are Subject To Certain Risks Inherent In Managing And Operating Businesses In Taiwan
16. 16Recent Geopolitical issues, conflicts and other global events could adversely affect our results of operations and financial condition
17. 17We face risks associated with increased political uncertainty
18. 18Our supply chain may be disrupted by changes in U.S. trade policy
19. 19We Rely On Service Providers To Distribute Our Products To Customers
20. 20Any acquisitions we make could disrupt our business and seriously harm our financial condition
21. 21Our Ability To Use Our Net Operating Loss Carryforwards And Certain Other Tax Attributes May Be Limited, Which Could Potentially Result In Increased Tax Liabilities To Us In The Future

Risks Related to Our Intellectual Property

1. 22We Could Incur Substantial Costs Defending Against Claims That Our Products Infringe On The Proprietary Rights Of Others
2. 23We Depend On Our Intellectual Property
3. 24We Could Incur Substantial Costs Defending Our Intellectual Property From Infringement By Others

Risk Related to Ownership of Our Securities

1. 25We May Not Be Able To Access The Equity Or Credit Markets
2. 26Future Sales And Issuances Of Our Common Stock Or Rights To Purchase Common Stock By Us, Including Pursuant To Acquisitions, Investments, Financings or Our Equity Incentive Plans, Could Result In Additional Dilution Of Percentage Ownership Of Our Stockholders And Could Cause Our Stock Price To Fall
3. 27There Is A Limited Market For Our Common Stock
4. 28Our Reporting Obligations As A Public Company Are Costly
5. 29Future Changes in Financial Accounting Standards or Practices May Cause Adverse Unexpected Financial Reporting Fluctuations and Affect Reported Results of Operations
6. 30If we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately report our financial results or prevent fraud and our business may be harmed and our stock price may be adversely impacted
7. 31Our financial controls and procedures may not be sufficient to ensure timely and reliable reporting of financial information, which, as a public company, could materially harm our stock price
8. 32We Do Not Intend To Pay Dividends On Our Common Stock So Any Returns Will Be Limited To The Value Of Our Stock
9. 33Our common stock is subject to price volatility unrelated to our operations
10. 34A decline in the price of our common stock could affect our ability to raise working capital and adversely impact our ability to continue operations
11. 35If we are not able to comply with the applicable continued listing requirements or standards of the Nasdaq Capital Market, Nasdaq could delist our securities
12. 36Techniques employed by short sellers may drive down the market price of the common stock
13. 37It is not clear what effect such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend significant resources to investigate such allegations and/or defend ourselves
14. 38If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the common stock and trading volume could decline
15. 39Our articles of incorporation contain anti-takeover provisions that could materially adversely affect the rights of holders of our common stock