Item 1.01Item 1.01 - Entry into Material Agreement
Item
1.01 Entry into a Material Definitive Agreement.
On
February 11, 2026, Iveda Solutions, Inc., a Delaware corporation (the “Company”) consummated a public offering (the “Offering”)
of (i) 5,259,999 shares (the “Shares”) of the Company’s common stock, par value $0.00001 per share (“Common Stock”)
at an offering price of $0.35 per share of Common Stock, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase
up to 454,287 shares of Common Stock, at an offering price of $0.3499 per Pre-Funded Warrant and (iii) accompanying series x warrants
(the “Series X Warrants”) to purchase up to 11,428,572 shares of Common Stock.and accompanying Series X Warrant.
The
Pre-Funded Warrants are immediately exercisable subject to certain ownership limitations, have an exercise price of $0.0001 per share,
and may be exercised at any time until all of the Pre-Funded Warrants have been exercised in full. The Series X Warrants are exercisable
at a price of $0.35 per share, are exercisable from and after the date of their issuance and expire on the second (2)-year anniversary
of the original issuance date.
In
connection with the Offering, on February 9, 2026, the Company also entered into a securities purchase agreement (the “Purchase
Agreement”) with certain institutional investors who purchased shares of Common Stock, Pre-Funded Warrants and Series X Warrants
in this Offering.
On
August 28, 2024, as amended on September 4, 2024, February 20, 2025, January 14, 2026, and February 9, 2026. respectively, the Company,
entered into an engagement agreement (the “Engagement Agreement”) with H.C. Wainwright & Co., LLC (the “Placement
Agent”), pursuant to which the Company engaged the Placement Agent as the placement. Pursuant to the Engagement Agreement, in connection
with the Offering, paid the Placement Agent a cash fee of 7.0% in the amount of $140,000, issued the Placement Agent, or its designees,
placement agent warrants (the “Placement Agent Warrants”) to purchase up to 400,000 shares of Common Stock ((or 7.0%
of the number of Shares sold and Pre-Funded Warrants in this Offering) (the “Placement Agent Warrant Shares). The Placement Agent
Warrants are exercisable on the issuance date, have an exercise price of $0.4375 per share (representing 125% of the public offering
price per share of Common Stock), and have a termination that is two (2) years from the issuance date. In addition, the Company reimbursed
the Placement Agent for its accountable offering-related legal expenses in an amount of $100,000.
The
Shares, Pre-Funded Warrants, Series X Warrants, Placement Agent Warrants, and the shares of Common Stock underlying the Pre-Funded Warrants,
Series X Warrants, and Placement Agent Warrants issued in the Offering were offered pursuant to the Company’s registration statement
on Form S-1, as amended (File No. 333-293126) (the “Registration Statement”), initially filed with the Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended, on February 2, 2026, and declared effective by
the SEC on February 9, 2026.
The
Offering closed on February 11, 2026, for aggregate gross proceeds of approximately $2 million before deducting placement agent fees
and other offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for general corporate
purposes, which may include research and development of software products, repayment of existing indebtedness, working capital, capital
expenditures, acquisitions, joint ventures and stock repurchase programs.
The
Purchase Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification
obligations of the Company, the Placement Agent, or the investors, as the case may be and other obligations of the parties.
Pursuant
to the terms of the Purchase Agreement, the Company has agreed that for a period of up to twelve (12) months from the closing of this
Offering, that neither the Company nor any subsidiary may (i) issue, enter into any agreement to issue or announce the issuance or proposed
issuance of any shares of Common Stock or Common Stock equivalents or (ii) file any registration statement or prospectus, or any amendment
or supplement thereto, in each case, subject to certain exceptions. The Company has also agreed not to effect or enter into an agreement
to effect any issuance of Common Stock or Common Stock equivalents involving a Variable Rate Transaction, as defined in the Purchase
Agreement, for a period of up to six (6) months following the closing of the Offering, subject to certain exceptions.
In
addition, each of the Company’s directors and executive officers entered into a lock-up agreement (the “Lock-Up Agreement”),
which prohibits them from offering, pledging, announcing the intention to sell, selling, contracting to sell, granting any option or
right to purchase, or otherwise transferring or disposing of their shares of Common Stock or any securities convertible into or exercisable
or exchangeable for shares of Common Stock for a period of 30 days following the closing of the Offering, subject to certain carveouts.
Notwithstanding the foregoing, the Company will be permitted to make sales under our existing at-the-market sales agreement with the
Placement Agent.
The
foregoing does not purport to be a complete description of each of the Engagement Letter, the Pre-Funded Warrants, the Series X Warrants,
the Placement Agent Warrant, and the Purchase Agreement, and is qualified in its entirety by reference to the full text of each of such
document, which are filed as Exhibits 1.1, 1.2, 4.1, 4.2, 4.3, and 10.1, respectively, to this Current Report on Form 8-K (this “Form
8-K”) and incorporated herein by reference.