VIASPACE (VSPC) 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 13, 2013
Document And Entity Information	'	'
Entity Registrant Name	'VIASPACE Inc.	'
Entity Central Index Key	'0001270200	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	1,489,332,999
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Cash and equivalents	$21,000	$50,000
Prepaid expenses	403,000	287,000
TOTAL CURRENT ASSETS	424,000	337,000
FIXED ASSETS, NET	1,000	0
OTHER ASSETS:	'	'
Other assets	1,000	1,000
TOTAL OTHER ASSETS	1,000	1,000
TOTAL ASSETS	426,000	338,000
Accounts payable	37,000	113,000
Accrued expenses	82,000	46,000
Unearned revenue	50,000	66,000
Related party payables	680,000	680,000
TOTAL CURRENT LIABILITIES	849,000	905,000
COMMITMENTS AND CONTINGENCIES (Note 9)	'	'
STOCKHOLDERS' EQUITY (DEFICIT):	'	'
Preferred stock, $0.001 par value, 10,000,000 shares authorized, one share of Series A preferred stock issued and outstanding in 2013 and 2012	0	0
Common stock, $0.001 par value, 1,500,000,000 shares authorized, 1,487,841,771 and 1,433,366,223 shares issued and outstanding in 2013 and 2012, respectively	1,488,000	1,433,000
Additional paid in capital	47,401,000	46,790,000
Accumulated deficit	-49,312,000	-48,790,000
Total stockholders' equity (deficit)	-423,000	-567,000
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$426,000	$338,000

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock par value	$0.00	$0.00
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
Common stock par value	$0.00	$0.00
Common stock shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	1,487,841,771	1,433,366,223
Common stock, shares outstanding	1,487,841,771	1,433,366,223

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Income Statement [Abstract]	'		'		'		'
REVENUES	$9,000		$0		$72,000		$27,000
COST OF REVENUES	7,000		0		22,000		25,000
GROSS PROFIT	2,000		0		50,000		2,000
OPERATING EXPENSES	'		'		'		'
Operations	7,000		5,000		24,000		5,000
Selling, general and administrative	171,000		174,000		487,000		692,000
Total operating expenses	178,000		179,000		511,000		697,000
LOSS FROM OPERATIONS	-176,000		-179,000		-461,000		-695,000
OTHER INCOME (EXPENSE)	'		'		'		'
Interest expense	-21,000		-194,000		-61,000		-348,000
Total other expense (income)	-21,000		-194,000		-61,000		-348,000
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	-197,000		-373,000		-522,000		-1,043,000
INCOME TAXES	0		0		0		0
LOSS FROM CONTINUING OPERATIONS BEFORE DISCONTINUED OPERATIONS	-197,000		-373,000		-522,000		-1,043,000
Discontinued operations	0		-5,060,000		0		-5,331,000
NET LOSS	-197,000		-5,433,000		-522,000		-6,374,000
Net loss attributed to noncontrolling interests	0		22,000		0		89,000
NET LOSS ATTRIBUTED TO VIASPACE	($197,000)		($5,411,000)		($522,000)		($6,285,000)
LOSS PER SHARE OF COMMON STOCK FROM CONTINUING OPERATIONS - Basic and diluted	'	[1]	'	[1]	'	[1]	'	[1]
LOSS PER SHARE OF COMMON STOCK FROM DISCONTINUED OPERATIONS - Basic and Diluted	'	[1]	'	[1]	'	[1]	'	[1]
NET LOSS PER SHARE OF COMMON STOCK FROM NET LOSS ATTRIBUTED TO VIASPACE - Basic and diluted	'	[1]	'	[1]	'	[1]	'	[1]
WEIGHTED AVERAGE SHARES OUTSTANDING - Basic and diluted	1,474,163,688		1,386,147,082		1,459,097,682		1,372,377,976
[1]	Less than $0.01 per common share.

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]	'	'
Net loss	($522,000)	($6,374,000)
Depreciation	0	79,000
Amortization of intangible assets	0	45,000
Stock option compensation expense	9,000	194,000
Stock compensation expense related to stock issued	0	410,000
Stock issued for consulting expenses	287,000	80,000
Amortization of debt discount	61,000	0
Gain on disposal of assets	0	3,000
Loss on deconsolidation of VIASPACE Green Energy	0	4,969,000
Accounts receivable	0	-52,000
Inventory	0	-84,000
Prepaid expenses and other current assets	36,000	-46,000
Accounts payable	-38,000	7,000
Accrued expenses and other	-28,000	142,000
Unearned revenue	-16,000	33,000
Related party, net	0	-52,000
Net cash used in operating activities	-211,000	-646,000
Additions of fixed assets	-1,000	-92,000
Additions to land leases	0	-144,000
Reduction in cash on deconsolidation of VIASPACE Green Energy	0	-161,000
Proceeds from disposal of fixed assets	0	1,000
Net cash used in investing activities	-1,000	-396,000
Loans from related party	190,000	50,000
Payments made on financed insurance	-7,000	0
Distribution to noncontrolling interests	0	-75,000
Net cash provided by (used in) financing activities	183,000	-25,000
NET DECREASE IN CASH AND CASH EQUIVALENTS - continued operations	-29,000	-1,067,000
CASH AND CASH EQUIVALENTS, Beginning of period - continued operations	50,000	1,141,000
CASH AND CASH EQUIVALENTS, End of period - continued operations	21,000	74,000
Interest	0	0
Income taxes	$0	$0

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Description of Business - VIASPACE Inc. (“we”, “us”, “VIASPACE”, or the “Company”) was founded in July 1998 and is a renewable energy company with a global reach. Our renewable energy is based on biomass in particular our license to a dedicated energy crop with the trademark “Giant King™ Grass” (“GKG”), which we are able to commercialize throughout the world, except for the People’s Republic of China (“China”) and the Republic of China (“Taiwan”), through a sublicense for Giant King Grass we obtained from VIASPACE Green Energy Inc. (“VGE”).
	GKG can be burned in 100% biomass power plants to generate electricity; made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants; generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. Cellulosic ethanol, bio butanol and other liquid cellulosic biofuels, do not use corn or other food sources as feedstock. GKG can also be used as animal feed. GKG and other plants absorb and store carbon dioxide from the atmosphere as they grow. When they are burned, they release the carbon dioxide back into the atmosphere, but it is the same carbon dioxide that was removed from the atmosphere, and so this process is carbon neutral. Small amounts of fossil fuel are used by the farm equipment, transportation of GKG and fertilizer, so that the overall process of growing and burning GKG probably has some net carbon dioxide emissions, but much lower emissions than burning coal or other fossil fuels directly to create the same amount of energy. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
	Through September 30, 2012, VIASPACE owned 75.6% of the equity interests of VGE. VGE and its subsidiaries Inter Pacific Arts Corporation (“IPA BVI”) and Guangzhou Inter Pacific Arts (“IPA China”) specialize in the manufacturing of high quality, copyrighted, framed artwork sold in US retail chain stores. In addition, VGE has an exclusive license to Giant King Grass, a proprietary dedicated energy crop for a period described in Note 9. On September 30, 2012, the Company executed agreements to formalize the separation of the Company and VGE and cause the orderly transfer of all of the Company's equity interest in VGE to Changs, LLC, a company controlled by Sung Chang, President of VGE and a former Director of the Company. In addition, agreements have been executed which give VGE the right to commercially develop Giant King Grass in China and Taiwan and give VIASPACE the right to commercially develop Giant King Grass in the world other than China and Taiwan. Under the agreements, the VIASPACE secured debt previously owed to Chang will not have to be paid although it may be used to offset any outside claims made against Chang. Since the Company no longer has any equity interest in VGE, the Company can no longer consolidate the operations of VGE into the operations of the Company. The operating results of VGE prior to September 30, 2012 are shown as discontinued operations in the Company’s financial statements.
	Going Concern - The Company has incurred significant losses from operations, resulting in an accumulated deficit of $49,312,000. The Company expects such losses to continue. However, on September 30, 2012, as discussed in Note 5, the Company entered into a Loan Agreement with Dr. Kevin Schewe, a member of the Company’s Board of Directors, whereby Dr. Schewe agreed to fund the Company up to $1,000,000 over the next five years in accordance with such agreement. The Company expects loans from Dr. Schewe and revenue generated from future contracts using the sublicense it has for Giant King Grass to fund operations for the foreseeable future. However no assurance can be given that Dr. Schewe will continue to fund the Company or that contracts will be obtained in the future that will be profitable. Accordingly, there continues to be substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any other adjustments that might result from the outcome of these uncertainties.
	Basis of Presentation - The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Results for interim periods should not be considered indicative of results for a full year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The accounting policies used in preparing these consolidated financial statements are the same as those described in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes may materially differ from management’s estimates and assumptions.
	Reclassifications of prior year’s data have been made to conform to 2013 classifications. Such classifications had no effect on net income (loss) reported in the consolidated statements of operations.
	Subsequent Events - We have evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, we are not aware of any events or transactions (other than those disclosed in Note 10) that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in our consolidated financial statements.

2_DISCONTINUED_OPERATIONS

2. DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
DISCONTINUED OPERATIONS	'
	During 2012, the Company eliminated all ownership interests it held in VGE, Direct Methanol Fuel Cell Corporation, and Ionfinity, LLC. The revenues and expenses of each of these entities are included in Discontinued Operations as follow:
		Three Months			Nine Months
		Ended			Ended
		30-Sep-12			30-Sep-12
	REVENUES	$	895,000		$	2,505,000
	COST OF REVENUES		606,000			1,733,000
	GROSS PROFIT		289,000			772,000
	OPERATING EXPENSES
	Operations		35,000			133,000
	Selling, general and administrative		363,000			1,178,000
	Total operating expenses		398,000			1,311,000
	LOSS FROM OPERATIONS		(109,000	)		(539,000	)
	OTHER INCOME (EXPENSE)
	Other expense		(4,000	)		(3,000	)
	Other income		22,000			180,000
	Total other income (expense)		18,000			177,000
	LOSS BEFORE INCOME TAXES		(91,000	)		(362,000	)
	Income taxes		―			―
	NET LOSS		(91,000	)		(362,000	)
	Land use rights amortization included in discontinued operations was $8,000 and $27,000 for the three and nine months ended September 30, 2012, respectively.
	License to grass amortization included in discontinued operations was $6,000 and $18,000 for the three and nine months ended September 30, 2012, respectively.
	Rent expense included in discontinued operations for the three and nine months ended September 30, 2012 was $8,000 and $24,000, respectively.

3_PREPAID_EXPENSES

3. PREPAID EXPENSES	9 Months Ended
	Sep. 30, 2013
Prepaid Expense and Other Assets, Current [Abstract]	'
PREPAID EXPENSES	'
	The Company has entered into agreements with certain of its consultants and vendors whereby the Company issued registered shares of its common stock under an existing registration statement on Form S-8 as well as unregistered shares of common stock in exchange for future services to be provided to the Company. At September 30, 2013 and December 31, 2012, the remaining value of these agreements was $328,000 and $245,000, respectively, which is included in prepaid expenses in the accompanying consolidated balance sheets.
	Other prepaid expenses were $75,000 and $42,000 at September 30, 2013 and December 31, 2012, respectively.

4_STOCK_OPTIONS_WARRANTS_AND_I

4. STOCK OPTIONS, WARRANTS AND ISSUED STOCK	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
STOCK OPTIONS, WARRANTS AND ISSUED STOCK	'
	The fair value of each stock option granted is estimated on the date of the grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk free interest rate is based upon market yields for United States Treasury debt securities at a maturity near the term remaining on the option. Dividend rates are based on the Company’s dividend history.  The stock volatility factor is based on the historical volatility of the Company’s stock price. The expected life of an option grant is based on management’s estimate as no options have been exercised in the Plan to date. The Company calculated a forfeiture rate for employees and directors based on historical information. A forfeiture rate of 0% is used for options granted to consultants. The fair value of each option grant to employees, directors and consultants is calculated by the Black-Scholes method and is recognized as compensation expense on a straight-line basis over the vesting period of each stock option award. For stock options issued to employees, directors, consultants and advisory board members for 2013 and 2012, the fair value was estimated at the date of grant using the following range of assumptions:
		2013		2012
	Risk free interest rate	2.00%		0.99 - 1.40%
	Dividends	0%		0%
	Volatility factor	134.81%		124.48% - 134.79%
	Expected life	6.67 years		6.67 years
	Annual forfeiture rate	0%		34.4% - 35.2%
	The following table summarizes activity for employees and directors in the Company’s Plan at September 30, 2013:
			Number of		Weighted-		Weighted-		Aggregate
			Shares		Average		Average		Intrinsic
					Exercise		Remaining		Value
					Price Per		Contractual
					Share		Term In Years
	Outstanding at December 31, 2012			67,408,000	$	0.013
	Granted			1,000,000		0.0097
	Exercised			―		―
	Forfeited			―		―
	Outstanding at September 30, 2013			68,408,000	$	0.013		6.91	$	271,000
	Exercisable at September 30, 2013			66,658,000	$	0.013		6.85	$	263,000
	The Company granted 1,000,000 stock options in 2013. The Plan recorded $4,000 of compensation expense for director stock options in 2013.  At September 30, 2013, there was $10,000 of unrecognized compensation costs related to non-vested share-based compensation arrangements under the Plan that is expected to be recognized over a weighted average period of approximately eleven months. At September 30, 2013, the fair value of options vested for employees and directors was $920,000.  There were no options exercised during 2013.

5_SHORTTERM_AND_LONGTERM_DEBT

5. SHORT-TERM AND LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
SHORT-TERM AND LONG-TERM DEBT	'
	Loan Agreement with Dr. Kevin Schewe
	Effective September 30, 2012, the Company entered into a Loan Agreement with Director Kevin Schewe whereby Dr. Schewe agreed to loan up to $1 million to the Company over a five-year period based on requests from the Company. The loans would be evidenced by a Secured Convertible Note. Each individual loan will accrue interest at 6% per annum and are secured by all assets of the Company. Each note would mature on the second anniversary of the issuance date of such note. Each note is convertible at Dr. Schewe’s request, into a fixed number of shares of the Company’s common stock based on the closing price of the Company’s common stock for the twenty trading days prior to the issuance of the loan, less a 20% discount.
	From January through September 2013, Dr. Schewe made loans of $190,000 to the Company. The Company recorded a discount on the loans of $61,000 as a result of a beneficial conversion feature, which will be amortized over the term of the note on a straight-line basis, which approximates the effective interest method. During the quarter, Dr. Schewe converted loans totaling $55,000 into 6,861,033 common shares of the Company. From January through September 2013, Dr. Schewe converted loans totaling $190,000 into 18,790,103 common shares of the Company. At the time of the conversions, the company recorded the discount as additional interest expense. As of September 30, 2013, the Company had remaining availability under the note of $675,000.

6_STOCKHOLDERS_EQUITY

6. STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
STOCKHOLDERS' EQUITY	'
	During 2013, the Company issued 9,125,000 shares of common stock under an existing Registration Statement on Form S-8 to employees and consultants for services provided or to be provided to the Company. In addition, the Company issued 28,232,686 unregistered shares of common stock to employees, consultants and vendors for services provided or to be provided to the Company. These share issuances were recorded at $456,000 which is the fair market value determined by the price of the Company’s common stock trading on the OTC Markets on the date of grant. During 2013, 1,672,241 shares of common stock were returned by a vendor to the Company and cancelled. As of September 30, 2013, there were 1,487,841,771 shares of common stock outstanding.
	The Company issued 18,790,103 shares of common stock to Director Kevin Schewe as he converted loans into shares of common stock as allowed under an agreement he has with the Company as discussed in Note 5.

7_NET_LOSS_PER_SHARE

7. NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]	'
NET LOSS PER SHARE	'
	The Company computes net loss per share in accordance with FASB ASC Topic 260.  Under its provisions, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the periods presented.  Diluted earnings would customarily include, if dilutive, potential shares of common stock issuable upon the exercise of stock options and warrants.  The dilutive effect of outstanding stock options and warrants is reflected in earnings per share in accordance with FASB ASC Topic 260 by application of the treasury stock method.  For the periods presented, the computation of diluted loss per share equaled basic loss per share as the inclusion of any dilutive instruments would have had an antidilutive effect on the earnings per share calculation in the periods presented.
	The following table sets forth common stock equivalents (potential common stock) at September 30, 2013 and 2012 that are not included in the loss per share calculation since their effect would be anti-dilutive for the periods indicated:
		2013			2012
	Stock Options		68,408,000			67,408,000
	The following table sets forth the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2013 and 2012, respectively:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Basic and diluted net loss per share:
	Numerator:
	Net loss attributable to common stock	$	(197,000	)	$	(5,433,000	)	$	(522,000	)	$	(6,374,000	)
	Denominator:
	Weighted average shares of common stock outstanding		1,474,163,688			1,383,147,082			1,459,097,682			1,372,377,976
	Net loss per share of common stock, basic and diluted	$	*		$	*		$	*		$	*
	*  Less than $0.01

8_RELATED_PARTY_TRANSACTIONS

8. RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	Included in the Company’s consolidated balance sheets at September 30, 2013 and December 31, 2012 are Related Party Payables. The Company has a payable of $680,000 at September 30, 2013 and December 31, 2012. Included in the amount is $640,000 owed to Dr. Kukkonen, CEO of the Company. Of the amount to Dr. Kukkonen, there is a cash component totaling $136,000 and a common stock component totaling $504,000. Dr. Kukkonen deferred a portion of his 2009, 2010 and 2011 stock awards and is entitled to the following unregistered shares of Company common stock at December 31, 2012: 11,195,707 shares for deferred 2009 compensation; 8,467,939 shares for deferred 2010 compensation; and 24,730,678 shares for deferred 2011 compensation.
	Additionally, the Company has agreed to pay VGE $40,000 as reimbursement for legal fees and costs in connection with the separation of the Company and VGE. This amount is due by September 30, 2014.
	The Company has a loan agreement with Director Dr. Kevin Schewe which is described in Note 5.

9_OTHER_COMMITMENTS_AND_CONTIN

9. OTHER COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
OTHER COMMITMENTS AND CONTINGENCIES	'
	Leases
	The Company currently has no long term office lease.  The Company leases land in San Diego County, California where it grows Giant King Grass. Rent expense charged to operations for three and nine months ended September 30, 2013 was $4,000 and $8,000, respectively. Rent expense charged to operations for three and nine months ended September 30, 2012 was $0.
	Collaborative Agreements
	We are a party to certain collaborative agreements with various entities for the joint operation of test plots to establish that GKG grows well in the area and optimal agronomic practices are developed. These agreements are in the form of development collaborations and licensing agreements. Under these agreements, we have granted rights to grow and use of GKG. In return, we are entitled to receive certain payments for the operations of the test plots and license fees on the harvesting of GKG should it ultimately be commercialized.
	All of our collaborative agreements are subject to termination by either party, without significant financial penalty to them. Under the terms of these agreements, upon a termination we are entitled to reacquire all rights in our technology at no cost and are free to re-license the technology to other collaborative partners.
	Revenue earned from collaborative agreements is comprised of negotiated payments for the establishment and operations of the test plots. Deferred revenue represents customer payments received which are related to future performance. Generally for collaborative agreements establishing test plots, the Company recognizes revenue only after the Giant King Grass is planted in the customer’s location. Until that time any money received is recorded as deferred revenue. Once the planting is complete, the collaborative agreement payments are amortized over a period of six and one-half months which represents the growing season of Giant King Grass. During the three and nine months ended September 30, 2013, the Company received $25,000 and $51,000, respectively under these collaborative agreements and recognized $4,000 and $67,000, respectively in revenue from these agreements.
	License Agreement
	Effective of as September 30, 2012, VIASPACE and VGE entered into a Supply, License and Commercialization Agreement (“License Agreement”) pursuant to which VGE granted to VIASPACE a nontransferable, royalty-bearing exclusive license to commercialize Giant King Grass anywhere within the world other than China and Taiwan. Additionally, the License Agreement allows VIASPACE to use the Giant King Grass intellectual property and VIASPACE Green Energy trade name in connection with its efforts to commercialize Giant King Grass. The Company assigned no value to the sublicense due to uncertainties of future revenues.
	VIASPACE agreed that it would not during the term of the License Agreement and a three-year period thereafter, (i) manufacture, commercialize or otherwise engage in any research or development of a grass or any other product or material having similar or otherwise competitive properties to Giant King Grass.
	VGE agreed to provide VIASPACE with Giant King Grass seedlings that will be filled at an agreed upon price as set forth in the License Agreement. VIASPACE agreed to pay VGE for and during the Term a royalty of eight percent (8%) on net sales made in its territory.
	The initial term of the License Agreement is for two years (“Initial Term”). As a condition to the right to renew after the first two-year term for an additional two year term, VISPACE needs to achieve the milestones in the first two year period:
		·	One or more fully-executed, third party sales contracts for the sale of Giant King Grass shall have been entered into during the Initial Term, pursuant to which VIASPACE is to be paid an aggregate amount of at least $200,000 within that 24 consecutive monthly period; and two or more, third party growing locations of at least 10 hectares in total shall have been obtained and planted during the Initial Term. The Company expects to meet the milestones during the first two year period, but no assurance can be given that they will be met.
	There are additional milestones that need to be met as a condition to renew the license for subsequent two year periods, in order for VIASPACE to maintain the license.
	Employment Agreements
	Effective October 1, 2013, the Company entered into one-year employment agreements with Carl Kukkonen and Stephen Muzi. Dr. Kukkonen serves as Chief Executive Officer of the Company and Mr. Muzi serves as Chief Financial Officer, Treasurer and Secretary. Dr. Kukkonen will receive a salary of $164,800 per annum and Mr. Muzi would receive $61,800 per annum. Each of them would also be entitled to a bonus as determined by the Company’s Board of Directors, customary insurance and health benefits, and reimbursement for out-of-pocket expenses in the course of his employment. Additionally, Dr. Kukkonen is to receive 20 business days paid leave per year and Mr. Muzi is to receive 10 business days paid leave.
	Litigation
	The Company is not party to any material legal proceedings at the present time.

10_SUBSEQUENT_EVENTS

10. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	On October 25, 2013, Kevin Schewe, advanced an additional $17,000 pursuant to the convertible loan agreement and immediately converted the $17,000 loan into 1,491,228 shares of Company common stock at a conversion price of $0.0114 per common share.
	Effective October 1, 2013, the Company entered into one-year employment agreements with Carl Kukkonen and Stephen Muzi. Dr. Kukkonen serves as Chief Executive Officer of the Company and Mr. Muzi serves as Chief Financial Officer, Treasurer and Secretary. Dr. Kukkonen will receive a salary of $164,800 per annum and Mr. Muzi will receive $61,800 per annum.
	On October 9, 2013, 1 million non-qualified stock options were issued to Director Angelina Galiteva and 2 million non-qualified stock options were issued to Kevin Schewe. Additionally, on October 9, 2013, 2 million incentive stock options were issued to Carl Kukkonen and 1 million incentive stock options were issued to Stephen Muzi. All of the stock options will be granted at fair market value with a 2-year vesting period on a quarterly basis.

1_SUMMARY_OF_SIGNIFICANT_ACCOU1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Description of Business	'
	Description of Business - VIASPACE Inc. (“we”, “us”, “VIASPACE”, or the “Company”) was founded in July 1998 and is a renewable energy company with a global reach. Our renewable energy is based on biomass in particular our license to a dedicated energy crop with the trademark “Giant King™ Grass” (“GKG”), which we are able to commercialize throughout the world, except for the People’s Republic of China (“China”) and the Republic of China (“Taiwan”), through a sublicense for Giant King Grass we obtained from VIASPACE Green Energy Inc. (“VGE”).
	GKG can be burned in 100% biomass power plants to generate electricity; made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants; generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. Cellulosic ethanol, bio butanol and other liquid cellulosic biofuels, do not use corn or other food sources as feedstock. GKG can also be used as animal feed. GKG and other plants absorb and store carbon dioxide from the atmosphere as they grow. When they are burned, they release the carbon dioxide back into the atmosphere, but it is the same carbon dioxide that was removed from the atmosphere, and so this process is carbon neutral. Small amounts of fossil fuel are used by the farm equipment, transportation of GKG and fertilizer, so that the overall process of growing and burning GKG probably has some net carbon dioxide emissions, but much lower emissions than burning coal or other fossil fuels directly to create the same amount of energy. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
	Through September 30, 2012, VIASPACE owned 75.6% of the equity interests of VGE. VGE and its subsidiaries Inter Pacific Arts Corporation (“IPA BVI”) and Guangzhou Inter Pacific Arts (“IPA China”) specialize in the manufacturing of high quality, copyrighted, framed artwork sold in US retail chain stores. In addition, VGE has an exclusive license to Giant King Grass, a proprietary dedicated energy crop for a period described in Note 9. On September 30, 2012, the Company executed agreements to formalize the separation of the Company and VGE and cause the orderly transfer of all of the Company's equity interest in VGE to Changs, LLC, a company controlled by Sung Chang, President of VGE and a former Director of the Company. In addition, agreements have been executed which give VGE the right to commercially develop Giant King Grass in China and Taiwan and give VIASPACE the right to commercially develop Giant King Grass in the world other than China and Taiwan. Under the agreements, the VIASPACE secured debt previously owed to Chang will not have to be paid although it may be used to offset any outside claims made against Chang. Since the Company no longer has any equity interest in VGE, the Company can no longer consolidate the operations of VGE into the operations of the Company. The operating results of VGE prior to September 30, 2012 are shown as discontinued operations in the Company’s financial statements.
Going Concern	'
	Going Concern - The Company has incurred significant losses from operations, resulting in an accumulated deficit of $49,312,000. The Company expects such losses to continue. However, on September 30, 2012, as discussed in Note 5, the Company entered into a Loan Agreement with Dr. Kevin Schewe, a member of the Company’s Board of Directors, whereby Dr. Schewe agreed to fund the Company up to $1,000,000 over the next five years in accordance with such agreement. The Company expects loans from Dr. Schewe and revenue generated from future contracts using the sublicense it has for Giant King Grass to fund operations for the foreseeable future. However no assurance can be given that Dr. Schewe will continue to fund the Company or that contracts will be obtained in the future that will be profitable. Accordingly, there continues to be substantial doubt as to the Company’s ability to continue as a going concern. The consolidated financial statements do not include any other adjustments that might result from the outcome of these uncertainties.
Basis of Presentation	'
	Basis of Presentation - The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Results for interim periods should not be considered indicative of results for a full year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The accounting policies used in preparing these consolidated financial statements are the same as those described in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes may materially differ from management’s estimates and assumptions.
	Reclassifications of prior year’s data have been made to conform to 2013 classifications. Such classifications had no effect on net income (loss) reported in the consolidated statements of operations.
Subsequent Events	'
	Subsequent Events - We have evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, we are not aware of any events or transactions (other than those disclosed in Note 10) that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in our consolidated financial statements.

2_DISCONTINUED_OPERATIONS_Tabl

2. DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
Revenues and expenses of discontinued operations	'
		Three Months			Nine Months
		Ended			Ended
		30-Sep-12			30-Sep-12
	REVENUES	$	895,000		$	2,505,000
	COST OF REVENUES		606,000			1,733,000
	GROSS PROFIT		289,000			772,000
	OPERATING EXPENSES
	Operations		35,000			133,000
	Selling, general and administrative		363,000			1,178,000
	Total operating expenses		398,000			1,311,000
	LOSS FROM OPERATIONS		(109,000	)		(539,000	)
	OTHER INCOME (EXPENSE)
	Other expense		(4,000	)		(3,000	)
	Other income		22,000			180,000
	Total other income (expense)		18,000			177,000
	LOSS BEFORE INCOME TAXES		(91,000	)		(362,000	)
	Income taxes		―			―
	NET LOSS		(91,000	)		(362,000	)

4_STOCK_OPTIONS_WARRANTS_AND_I1

4. STOCK OPTIONS, WARRANTS AND ISSUED STOCKS (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Fair value assumptions	'
		2013		2012
	Risk free interest rate	2.00%		0.99 - 1.40%
	Dividends	0%		0%
	Volatility factor	134.81%		124.48% - 134.79%
	Expected life	6.67 years		6.67 years
	Annual forfeiture rate	0%		34.4% - 35.2%
Employee and Director Option Grants	'
			Number of		Weighted-		Weighted-		Aggregate
			Shares		Average		Average		Intrinsic
					Exercise		Remaining		Value
					Price Per		Contractual
					Share		Term In Years
	Outstanding at December 31, 2012			67,408,000	$	0.013
	Granted			1,000,000		0.0097
	Exercised			―		―
	Forfeited			―		―
	Outstanding at September 30, 2013			68,408,000	$	0.013		6.91	$	271,000
	Exercisable at September 30, 2013			66,658,000	$	0.013		6.85	$	263,000

7_NET_LOSS_PER_SHARE_Tables

7. NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]	'
Common Stock Equivalents Not Included in Loss per Share	'
		2013			2012
	Stock Options		68,408,000			67,408,000
Computation of basic and diluted net loss per share	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
	Basic and diluted net loss per share:
	Numerator:
	Net loss attributable to common stock	$	(197,000	)	$	(5,433,000	)	$	(522,000	)	$	(6,374,000	)
	Denominator:
	Weighted average shares of common stock outstanding		1,474,163,688			1,383,147,082			1,459,097,682			1,372,377,976
	Net loss per share of common stock, basic and diluted	$	*		$	*		$	*		$	*

2_DISCONTINUED_OPERATIONS_Deta

2. DISCONTINUED OPERATIONS (Details) (VGE, USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
VGE	'	'
REVENUES	$895,000	$2,505,000
COST OF REVENUES	606,000	1,733,000
GROSS PROFIT	289,000	772,000
OPERATING EXPENSES	'	'
Operations	35,000	133,000
Selling, general and administrative	363,000	1,175,000
Total operating expenses	398,000	1,311,000
LOSS FROM OPERATIONS	-109,000	-539,000
OTHER INCOME	'	'
Other expense	-4,000	-3,000
Other income	22,000	180,000
Total other income (expense)	18,000	177,000
LOSS BEFORE INCOME TAXES	-91,000	-362,000
Income taxes	0	0
NET LOSS	($91,000)	($362,000)

2_DISCONTINUED_OPERATIONS_Narr

2. DISCONTINUED OPERATIONS (Narrative) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]	'	'
Discontinued operations, amortization	$14,000	$45,000
Discontinued operations, rent expense	$8,000	$24,000

3_PREPAID_EXPENSES_Details_Nar

3. PREPAID EXPENSES (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Prepaid Expense and Other Assets, Current [Abstract]	'	'
Prepaid Agreements	$328,000	$245,000
Other prepaid expenses	$75,000	$42,000

4_STOCK_OPTIONS_WARRANTS_AND_I2

4. STOCK OPTIONS, WARRANTS AND ISSUED STOCKS (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'
Risk free interest rate - minimum	'	0.99%
Risk free interest rate - maximum	'	1.40%
Risk free interest rate	2.00%	'
Dividends	0.00%	0.00%
Volatility factor - minimum	'	124.48%
Volatility factor - maximum	'	134.79%
Volatility factor	134.81%	'
Expected life	'6 years 8 months 1 day	'6 years 8 months 1 day
Annual forfeiture rate	'0%	'34.4% - 35.2%

4_STOCK_OPTIONS_ACTIVITY_Detai

4. STOCK OPTIONS ACTIVITY (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Number of Shares	'
Outstanding, beginning balance	67,408,000
Granted	1,000,000
Exercised	0
forfeited	0
Outstanding, ending balance	68,408,000
Exercisable, ending balance	68,658,000
Weighted Average Exercise Price Per Share	'
Outstanding, beginning balance	$0.01
Weighted average exercise price, granted	$0.01
Outstanding, ending balance	$0.01
Exercisable, ending balance	$0.01
Weighted Average Remaining Contractual Terms in Years	'
Outstanding, ending balance	'6 years 10 months 28 days
Exercisable, ending balance	'6 years 10 months 6 days
Aggregate Intrinsic Value	'
Outstanding, ending balance	$271,000
Exercisable, ending balance	$263,000

4_STOCK_OPTIONS_WARRANTS_AND_I3

4. STOCK OPTIONS, WARRANTS AND ISSUED STOCK (Details Narrative) (USD $)	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Unrecognized compensation costs related to non-vested shares	$10,000
Fair value of options vested	$920,000

5_SHORTTERM_AND_LONGTERM_DEBT_

5. SHORT-TERM AND LONG-TERM DEBT (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Debt Disclosure [Abstract]	'	'
Loans from shareholder	$190,000	$50,000
Discount on loans from shareholder	61,000	'
Loans converted into shares, shares issued	18,790,103	'
Amount remaining under the loan	$675,000	'

6_STOCKHOLDERS_EQUITY_Narrativ

6. STOCKHOLDERS' EQUITY (Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Common stock issued for services, shares	9,125,000
Unregistered shares of common stock issued for services	28,232,686
Fair value of stock issued for services	$456,000
Stock returned and cancelled	1,672,241

7_NET_LOSS_PER_SHARE_Details

7. NET LOSS PER SHARE (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]	'	'
Stock Options	68,408,000	67,408,000

7_NET_LOSS_PER_SHARE_Details_1

7. NET LOSS PER SHARE (Details 1) (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012
Basic and diluted net income (loss) per share:	'		'		'		'
Numerator : Net loss attributable to common stock	($197,000)		($5,433,000)		($522,000)		($6,374,000)
Denominator	'		'		'		'
Weighted average shares of common stock outstanding	1,474,163,688		1,386,147,082		1,459,097,682		1,372,377,976
Net loss per share of common stock, basic and diluted	'	[1]	'	[1]	'	[1]	'	[1]
[1]	Less than $0.01 per common share.

8_RELATED_PARTY_TRANSACTIONS_D

8. RELATED PARTY TRANSACTIONS (Details) (Carl Kukkonen, USD $)	Sep. 30, 2013	Dec. 31, 2012
Carl Kukkonen	'	'
Related party payables	$680,000	$680,000

9_OTHER_COMMITMENTS_AND_CONTIN1

9. OTHER COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]	'	'	'	'
Rent Expense	$4,000	$0	$8,000	$0
Proceeds from collaborative agreements	25,000	'	51,000	'
Revenue recognized from collaborative agreements	$4,000	'	$67,000	'