Iveda Solutions, Inc. Debt Disclosure
NOTE 3 SHORT-TERM AND LONG-TERM DEBT
The short-term debt balances were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Loan from Shanghai Commercial Bank at 3.1%-3.2% interest rate per annum. Due originally in January 2025 and subsequently replaced with a new loan which was repaid in 2025. | $ | $ | 183,011 | |||||
| Loan from HuaNam Bank at 3.4% interest rate per annum. Due in July 2026. | 159,500 | 91,505 | ||||||
| Loan from ChangHwa Bank at 3% -3.3% interest rate per annum. Paid May 2025. | 152,509 | |||||||
| Balance at end of period | $ | 159,500 | $ | 427,025 | ||||
As of December 31, 2025, there was $63,694 of restricted cash pledged as security for the Shanghai Commercial Bank short term loan.
The Long-term debt balances were as follows:
| Loans from Shanghai Commercial Bank with interest rates 2.1% per annum due January 2029 (1) | $ | 393,432 | $ | 498,195 | ||||
| Current Portion of Long-term debt | (127,600 | ) | (122,007 | ) | ||||
| Balance at end of period | $ | 265,832 | $ | 376,188 |
| 2026 | 127,600 | |||
| 2027 | 127,600 | |||
| 2028 | 127,600 | |||
| Thereafter | 10,632 | |||
| Total | $ | 393,432 |
| (1) | On January 24, 2024, the Company received a facility notice from Shanghai Commercial Bank, granting a revolving loan facility totaling up to TWD 10,000,000 (approximately $300,000 USD) and term loan facility amounting of TWD 20,000,000 (approximately ($600,000 USD). The term for the revolving loan is 1 year and for the term loan is 5 years. The 5 year term loan requires monthly payments including interest and principal, and the revolving loan requires a full principal repayment at the maturity date. The guarantors of this loan are Mr. Siu and Mr. Cheung, who are both part of Iveda Taiwan’s management team. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2015 | Jun 10, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.