IVDA

Iveda is a $3.83M sub-$1 micro-cap whose story (AI video search, IoT sensors, smart-power/smart-city via CEREBRO) far outruns its financials. Revenue peaked at $6.50M in FY2023 and has fallen two straight years to $5.28M in FY2025 (-12.3% YoY), so the MD&A's 'expected growth due to the recent change in our revenue model' has not shown up in the numbers. Gross margin is just 24.1% — far below what a genuine software/licensing model should produce — which signals the mix is still hardware-heavy, not the high-margin monthly licensing the company keeps describing. Operating margin is -61.1% and the company has lost money every year shown (FY2021–FY2025), with a $56.4M accumulated deficit. Management concedes in the Risk Factors that it has 'incurred significant net losses since our inception' and 'cannot predict if we will achieve or maintain annual profitability in the near future or at all.'

The balance sheet looks superficially clean — $5.16M cash, only ~$0.39M total debt, $4.78M equity, current assets 4.8x current liabilities — but that solvency was bought with brutal dilution: shares outstanding rose 296.7% YoY. Cash nearly doubled (+96.1%) and equity jumped +90.8% not because the business generated it but because operations burned $2.03M and the company sold stock to backfill it. At the current ~$2M annual operating cash burn, existing cash is roughly two years of runway, and the established pattern is to raise it from shareholders — the diluted share count is why EPS 'improved' to -$0.88 optically while the enterprise deteriorated.