Iveda Solutions (IVDA) 10-Q 19 May 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	9-May-14
Document Information [Line Items]	'	'
Entity Registrant Name	'Iveda Solutions, Inc.	'
Entity Central Index Key	'0001397183	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'IVDA	'
Entity Common Stock, Shares Outstanding	'	26,778,357
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and Cash Equivalents	$914,834	$559,729
Restricted Cash	1,101,740	1,160,688
Accounts Receivable, net	354,927	372,587
Inventory	394,427	331,437
Other Current Assets	426,935	295,205
Total Current Assets	3,192,863	2,719,646
PROPERTY AND EQUIPMENT, Net	558,331	471,182
OTHER ASSETS	'	'
Intangible Assets, Net	141,666	146,666
Other Assets	388,453	341,752
Total Other Assets	530,119	488,418
Total Assets	4,281,313	3,679,246
CURRENT LIABILITIES	'	'
Accounts Payable and Other Current Liabilities	2,254,902	2,358,702
Due to Related Parties	100,000	100,000
Short Term Debt	522,517	60,291
Derivative Liability	83,876	39,804
Current Portion of Long-Term Debt	139,556	164,156
Total Current Liabilities	3,100,851	2,722,953
LONG TERM DEBT AND CONVERTIBLE DEBENTURES, Net of Discount	1,846,218	364,370
DUE TO RELATED PARTY, Net of Discount	118,168	70,114
STOCKHOLDERS’ EQUITY (DEFICIT)	'	'
Preferred Stock, $0.00001 par value; 100,000,000 shares authorized; no shares outstanding as of March 31, 2014 and December 31, 2013	0	0
Common Stock, $0.00001 par value; 200,000,000 shares authorized; 26,778,357 and 26,722,012 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	268	267
Additional Paid-In Capital	22,455,637	22,354,002
Accumulated Comprehensive Loss	-32,471	-30,670
Accumulated Deficit	-23,207,358	-21,801,790
Total Stockholders’ Equity (Deficit)	-783,924	521,809
Total Liabilities and Stockholders’ Equity (Deficit)	$4,281,313	$3,679,246

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred Stock, Shares Outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	26,778,357	26,722,012
Common stock, shares outstanding	26,778,357	26,722,012

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
REVENUE	'	'
Equipment Sales	$210,311	$435,833
Service Revenue	158,801	169,009
Other Revenue	5,752	10,380
TOTAL REVENUE	374,864	615,222
COST OF REVENUE	210,534	564,948
GROSS PROFIT	164,330	50,274
OPERATING EXPENSES	1,527,731	1,271,083
LOSS FROM OPERATIONS	-1,363,401	-1,220,809
OTHER INCOME (EXPENSE)	'	'
Foreign Currency Gain (Loss)	2,234	-189
Gain (Loss) on Derivatives and Conversion of Debt	11,600	-16,500
Interest Income	3	0
Interest Expense	-56,004	-18,730
Total Other Income (Expense)	-42,167	-35,419
LOSS BEFORE INCOME TAXES	-1,405,568	-1,256,228
BENEFIT FOR INCOME TAXES	0	0
NET LOSS	($1,405,568)	($1,256,228)
BASIC AND DILUTED LOSS PER SHARE (in dollars per share)	($0.05)	($0.06)

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net Loss	($1,405,568)	($1,256,228)
Other comprehensive loss:	'	'
Foreign currency translation adjustment	-1,801	-1,505
Comprehensive Loss	($1,407,369)	($1,257,733)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net Loss	($1,405,568)	($1,256,228)
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities	'	'
Depreciation and Amortization	54,324	57,084
Amortization of Debt Discount	-880	0
Amortization of Deferred Financing Costs	19,236	'
(Gain) Loss on Derivatives and Conversion of Debt	-11,600	16,500
Stock Compensation	96,000	40,000
Common Stock Issued for Services	0	13,378
(Increase) Decrease in Operating Assets:	'	'
Accounts Receivable	-38,284	1,258,084
Inventory	-66,051	-38,197
Other Current Assets	-135,472	165,016
Accounts Payable and Other Current Liabilities	-23,641	-423,574
Net cash used in operating activities	-1,511,936	-167,937
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchase of Property and Equipment	-137,129	-16,656
Net cash used in investing activities	-137,129	-16,656
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Changes in Restricted Cash	42,417	-645,511
Proceeds from (Payments on) Short-Term Notes Payable/Debt	2,118,141	-313,500
Proceeds from Exercise of Stock Options	5,635	42,000
Proceeds from (Payments to) Related Parties	-70,114	4,600
Proceeds from (Payments on) Long-Term Debt	-22,605	-20,058
Deferred Finance Costs (Net)	-64,074	0
Common Stock Issued, net of Cost of Capital	0	2,708,172
Net cash provided by financing activities	2,009,400	1,775,703
EFFECT OF EXCHANGE RATE CHANGES ON CASH	-5,230	1,736
NET INCREASE IN CASH AND CASH EQUIVALENTS	355,105	1,592,846
Cash and Cash Equivalents - Beginning of Period	559,729	114,462
CASH AND CASH EQUIVALENTS - END OF PERIOD	914,834	1,707,308
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	'	'
Interest Paid	$32,105	$18,730

BASIS_OF_PRESENTATION_AND_SUMM

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	'
		NOTE 1	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	These statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. The operating results and cash flows for the three-month period ended March 31, 2014, are not necessarily indicative of the results that will be achieved for the full fiscal year ending December 31, 2014 or for future periods.
	The accompanying condensed consolidated financial statements have been prepared without audit and reflect all adjustments, consisting of normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of financial position and the results of operations for the interim periods. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, impairment costs, depreciation and amortization, sales returns and discounts, warranty costs, uncertain tax positions and the recoverability of deferred tax assets, stock compensation, contingencies and the fair value of assets and liabilities disclosed. Actual results and outcomes may differ from management’s estimates and assumptions. The statements have been prepared in accordance with GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such SEC rules and regulations.
	The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.
	Consolidation
	Effective April 30, 2011, Iveda Solutions, Inc. (the “Company”) completed its acquisition of Sole Vision Technologies (dba “MegaSys”), a company based in Taiwan. The consolidated financial statements include the accounts of the Company and MegaSys (from May 1, 2011 through March 31, 2014). All intercompany balances and transactions have been eliminated in consolidation. See Note 8.
	Going Concern
	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company’s Audit Report on the Financial Statements for the year ended December 31, 2013 contained a going concern qualification. From inception through to March 31, 2014 the Company has generated an accumulated deficit from operations totaling approximately $23.2 million and has used approximately $1.5 million in cash from operations through the three months ended March 31, 2014. The Company’s financial statements for the three months ended March 31, 2014 assume it will continue as a going concern, but to be able to do so it will need to raise additional capital to fund operations until positive operating cash flow is achieved. However, there can be no assurance that it will be able to raise sufficient additional capital to continue operations..  The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from this uncertainty.
	A multi-step plan was adopted by management to enable the Company to continue to operate and begin to report operating profits. The highlights of the plan include:
		•	Through May 1, 2014 the Company raised approximately $3.0 million through the private placement of convertible debentures and warrants and will continue efforts of this nature throughout the remainder of the fiscal year as deemed necessary by the Board of Directors.
		•	In December 2013, the Board of Directors approved a plan for the Company to raise an aggregate amount of $3.6 million in bridge financing, of which approximately $2.0 million was raised as of March 31, 2014, through the sale of Convertible Debentures.
		•	The Board of Directors approved a plan for the Company to engage a financial advisor in connection with a potential capital raise of up to $30 million (“Long Term Financing”).
		•	The Company is actively installing its cloud based software platform with certain telecommunications companies in other countries to create a reoccurring licensing revenue model as well as a distribution channel for proprietary video camera hardware in each respective country.
		•	In the third quarter of 2013, the Company launched two new camera lines in collaboration with MegaSys, its Taiwan subsidiary and Industrial Technology Research Institute (ITRI), its nonprofit research and development partner in Taiwan. These products are enablers of the Company’s video hosting services.
			The Company has recently developed two other standalone services:
			IvedaMobile™ – a cloud-hosting service that turns any smartphone or tablet into a mobile, cloud video streaming device. This was developed with ITRI.
			IvedaXchange™ – In collaboration with a technology partner, the Company developed a real-time situational awareness dashboard to enable organizations instant access to vital and filtered information such as emergency situations, location of critical assets, video monitoring, and local news. IvedaXchange is well-suited for law enforcement agencies and schools.
		•	The Company intends to continue to participate in industry and vertical tradeshows to launch new products, generate leads, solicit resellers and other sales channels, and identify potential technology partners.
		•	In December 2013, Iveda hired Bob Brilon as our Chief Financial Officer and Executive Vice President of Business Development. He has strong ties with the investment community and has extensive experience in mergers and acquisitions, strategic growth planning, and interacting with domestic and foreign institutional investors, which will be instrumental to our market expansion, global distribution of our cloud video hosting platform and services, and raising capital to fund our growth. In February 2014, the board of Directors appointed Mr. Brilon as the Company’s President.
	Concentrations
	Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable.
	Substantially all cash is deposited in two financial institutions, one in the United States and one in Taiwan. At times, amounts on deposit in the United States may be in excess of the FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 million. At times, amounts on deposit in Taiwan may be in excess of the CDIC insurance limit.
	Accounts receivable are unsecured, and the Company is at risk to the extent such amount becomes uncollectible. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. Revenue from two customers represented approximately 51% of total revenues for the three months ended March 31, 2014, and approximately 78% of total accounts receivable at March 31, 2014.
	Intangible Assets and Goodwill
	Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MegaSys. Such assets are being amortized over their estimated useful lives ranging from six months to ten years. Other Intangible Assets were fully amortized as of September 30, 2013. Future amortization of Intangible Assets is as follows:
	Trademarks
	2014		$	15,000
	2015			20,000
	2016			20,000
	2017			20,000
	Thereafter			66,666
	Total		$	141,666
	Goodwill represents the excess of the purchase price of MegaSys over the net assets acquired. Goodwill is tested annually for impairment or more frequently if indicators of impairment exist.
	Fair Value of Financial Instruments
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2014. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts receivable, accounts payable, accrued expenses, convertible notes and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.
	Derivative Liabilities
	The Convertible Debentures include both a conversion option and detachable warrants that are being accounted for as derivative liabilities because of anti-dilution provisions, which under US GAAP, prevents them from being indexed to the Company’s stock triggering derivative accounting. The fair value of the conversion option and detachable warrants is carried on the face of the accompanying balance sheet as a Derivative Liability, in current liabilities because the underlying instruments are convertible by the holder at any time until maturity. Any change in fair value of the derivative liability is reported as a gain or loss on derivative liability in the accompanying statement of operations.
	Segment Information
	The Company conducts operations in various geographic regions outside the United States. The operations and the customer base conducted in the foreign countries are similar to the United States operations. The net revenues and net assets (liabilities) for other significant geographic regions outside the United States are as follows:
			Net Revenues			Net Assets
						(Liabilities)
	United States		$	142,510		$	-1,265,181
	Asia		$	171,554		$	481,258
	Mexico		$	60,800			-
	Furthermore, due to operations in various geographic locations, the Company is susceptible to changes in national, regional and local economic conditions, demographic trends, consumer confidence in the economy and discretionary spending priorities that may have a material adverse effect on the Company’s future operations and results.
	The Company is required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. These taxes and fees are legal assessments to the customer, for which the Company has a legal obligation to act as a collection agent. Because the Company does not retain these taxes and fees, the Company does not include such amounts in revenue. The Company records a liability when the amounts are collected and relieves the liability when payments are made to the applicable governmental agencies.
	The Company operates as two reportable business segments in defined in ASC 280, "Segment Reporting" Each business segment has a chief operating decision maker and management personnel which review their business segment’s performance as it relates to revenue, operating profit and operating expenses.
			Three Months			Three Months		Condensed
			Ended March 31, 2014			Ended March 31, 2014		Consolidated
			Iveda Solutions, Inc.			MegaSys		Total
	Revenue		$	203,309		$	171,554	$	374,863
	Cost of Revenue			175,481			35,053		210,534
	Gross Profit			27,828			136,501		164,329
	Depreciation and Amortization.			51,319			3,005		54,324
	General and Administrative			1,287,847			185,559		1,473,406
	Loss from Operations			-1,311,338			-52,063		-1,363,401
	Foreign Currency Gain (Loss)			-200			2,434		2,234
	Gain on derivatives			11,600			-		11,600
	Interest Income			-			3		3
	Interest Expense			-52,941			-3,063		-56,004
	Loss Before Income Taxes			-1,352,879			-52,689		-1,405,568
	Provision For Income Taxes			-			-		-
	Net Loss		$	-1,352,879		$	-52,689	$	-1,405,568
Revenues as shown below represent sales to external customers for each segment. Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories, property and equipment for operating segments are regularly reviewed by management and are therefore provided below.
		Three Months Ended
		March 31,
		2014			2013
Revenues
United States		$	203,309		$	147,249
Republic of China (Taiwan)			171,554			467,973
		$	374,863		$	615,222
		Three Months Ended
		March 31,
		2014			2013
Operating earnings (loss)
United States		$	-1,311,338		$	-1,138,281
Republic of China (Taiwan)			-52,063			-82,528
		$	-1,363,401		$	-1,220,809
		Three Months Ended
		March 31,
		2014			2013
Property and equipment
United States		$	520,178		$	455,416
Republic of China (Taiwan)			38,153			25,557
		$	558,331		$	480,973
		Three Months Ended
		March 31,
		2014		2013
Additions to long-lived assets
United States		$	129,087		$	16,656
Republic of China (Taiwan)			8,042			-
		$	137,129		$	16,656
		Three Months Ended
		March 31,
		2014			2013
Inventory
United States		$	166,679		$	32,294
Republic of China (Taiwan)			227,748			129,017
		$	394,427		$	161,311
		Three Months Ended
		March 31,
		2014			2013
Total Assets
United States		$	1,728,682		$	3,111,469
Republic of China (Taiwan)			2,552,631			2,546,165
		$	4,281,313		$	5,657,634
Reclassification
Certain amounts in 2013 may have been reclassified to conform to the 2014 presentation.
New Accounting Pronouncements
In March 2014 FASB issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. The guidance addresses the consolidation of lessors in certain common control leasing arrangements and is based on a consensus reached by the Private Company Council (PCC).
Under current U.S. GAAP, a company is required to consolidate an entity in which it has a controlling financial interest. The assessment of controlling financial interest is performed under either: (a) a voting interest model; or (b) a variable interest entity model. In a variable interest entity model, the company has a controlling financial interest when it has: (a) the power to direct the activities that most significantly affect the economic performance of the entity; and (b) the obligation to absorb losses or the right to receive benefits of the entity that could be potentially significant to the entity.
To determine which model applies, a company preparing financial statements must first determine whether it has a variable interest in the entity being evaluated for consolidation and whether that entity is a variable interest entity.
The new guidance allows a private company to elect (when certain conditions exist) not to apply the variable interest entity guidance to a lessor under common control. Instead, the private company would make certain disclosures about the lessor and the leasing arrangement.
Under the amendments in this ASU, a private company lessee could elect an alternative not to apply variable interest entity guidance to a lessor when:
	⋅	-The private company lessee and the lessor are under common control;
	⋅	-The private company lessee has a leasing arrangement with the lessor;
	⋅	-Substantially all of the activity between the private company lessee and the lessor is related to the leasing activities (including supporting leasing activities) between those two companies, and
	⋅	-If the private company lessee explicitly guarantees or provides collateral for any obligation of the lessor related to the asset leased by the private company, then the principal amount of the obligation at inception does not exceed the value of the asset leased by the private company from the lessor.
		If elected, the accounting alternative should be applied to all leasing arrangements meeting the above conditions. The alternative should be applied retrospectively to all periods presented, and is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for all financial statements that have not yet been made available for issuance.
In April 2014 FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP.
Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment.
In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations.
The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations.
The amendments in this ASU enhance convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). Part of the new definition of discontinued operation is based on elements of the definition of discontinued operations in IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations.
The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted.

SHORTTERM_DEBT

SHORT-TERM DEBT	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Bank Loans Short-term [Text Block]	'
	NOTE 2	SHORT-TERM DEBT
	The short term debt balances were as follows:
			March 31		December 31
			2014		2013
	Loan from Shanghai Commercial & Savings Bank at various interest rates ranging from
	1% per annum to 3.26%. Due at various dates from April 2014 – September 2014.		$	95,337	$	60,291
	Loan from Hua Nan Bank at various interest rates ranging from 1% per annum
	to 3% per annum. Due date is September 2014.			328,600
	Loan from Bank SinoPac at various interest rates ranging from 1% per annum
	to 3.26% per annum. Due date is August 2014.			98,580
	Balance at end of period		$	522,517	$	60,291

CONVERTIBLE_DEBENTURES

CONVERTIBLE DEBENTURES	3 Months Ended
	Mar. 31, 2014
Convertible Debentures [Abstract]	'
Convertible Debentures [Text Block]	'
	NOTE 3	CONVERTIBLE DEBENTURES
	From December 12, 2013 through March 31, 2014, the Company sold $2,024,500 in principal amount of three year debentures, convertible at any time into Company common stock at $1.50 per share. The debentures bear interest at a rate of 9.5% per annum accruing monthly with the first interest payment after six months and then monthly. Purchasers of the convertible debentures also received warrants to purchase an aggregate of 184,045 shares of Company common stock exercisable for five years at an exercise price of $1.65. The Company incurred financing costs in connection with the issuance of the convertible debentures of $175,635 paid, or to be paid, in cash and will issue warrants to purchase 192,424 shares of common stock; these deferred costs have been capitalized in the accompanying balance sheets, and are being amortized to interest expense using the effective interest method over the 3 year life of the debt. The fair value of the conversion option and warrants on the date issued to the debenture holders totaled $79,111, is discounted from the carrying value of the debenture and amortized into interest expense over the 3 year life of the debt using the effective interest method. At March 31, 2014, the carrying value of the convertible debentures totaled $1,949,855, net of the $74,645 debt discount. Accrued interest related to the convertible debentures totaled $27,913. The Company expects to amortize approximately $43,000 into interest expense in each of the next 3 years reducing the related deferred costs and debt discount. Principal and all accrued interest is due at maturity, but can be repaid at any time with no penalty.
	The fair value of the conversion option and warrants is carried on the face of the accompanying Balance Sheet as derivative liability and totaled $83,876 at March 31, 2014. Any change in fair value of the derivative liability is reported as a gain or loss on derivative liability in the accompanying statement of operations. The Company recognized a gain on the derivative of $11,600 during the three months ended March 31. 2014.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	NOTE 4	EQUITY
	Preferred Stock
	The Company is authorized to issue 100,000,000 shares of $0.00001 par value preferred stock. No shares have been issued, and the rights and privileges of this class of stock have not been defined.
	Common Stock
	During the three months ended March 31, 2014, the Company issued 56,340 shares of common stock upon  the exercise of Stock Options at $0.10 per share.

STOCK_OPTION_PLAN_AND_WARRANTS

STOCK OPTION PLAN AND WARRANTS

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

'

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

'

NOTE 5

STOCK OPTION PLAN AND WARRANTS

The Company has also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price equal to the closing price of the Common Stock on the date of the grant. Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by the Company upon grant. Vesting periods range from 100% fully vested upon grant to a range of four to five years. Vested options may be exercised up to three months following date of termination of the relationship. The fair values of options are determined using the Black-Scholes option-pricing model. The estimated fair value of options is recognized as an expense on the straight-line basis over the options’ vesting periods.

Stock option transactions during the three months ended March 31, 2014 were as follows:

Three months ended March 31, 2014

Shares

Weighted -

Average

Exercise Price

Outstanding at Beginning of Year

5,693,322

$

1.07

Granted

130,000

1.71

Exercised

-56,345

0.1

Forfeited or Canceled

-127,750

1.16

Outstanding at End of Period

5,639,227

1.09

Options Exercisable at Period-End

4,612,441

$

1.33

Weighted-Average Fair Value of Options Granted During the Period

$

0.44

Information with respect to stock options outstanding and exercisable as of March 31, 2014 is as follows:

Options Outstanding

Options Exercisable

Number

Weighted -

Number

Outstanding

Average

Weighted -

Exercisable

Weighted -

Range of

at

Remaining

Average

At

Average

Exercise

Mar. 31,

Contractual

Exercise

Mar. 31,

Exercise

Prices

2014

Life

Price

2014

Price

$ 0.10 - $1.80

5,639,227

7.4 Years

$

1.09

4,612,441

$

1.33

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted.

2014

Expected Life

6.25 yrs

Dividend Yield

0

%

Expected Volatility

24.22

%

Risk-Free Interest Rate

2.73

%

Expected volatility for 2014 was estimated by using the Dow Jones U.S. Industry indexes sector classification methodology for industries similar to the Company. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the grant date. The expected life of the options is based on management’s estimate using historical experience.

Warrants

All Stock Warrant activity during the three months ended March 31, 2014 was related to the convertible debentures sold during the same period (See Note 3). Warrants included in the sale of the convertible debentures may be exercised up to 5 years following the date of grant with an exercise price of $1.65.

Stock warrant transactions during the three months ended March 31, 2014 were as follows:

Outstanding at December 31, 2013

3,883,641

Granted

199,197

Exercised

-

Forfeited or Canceled

-

Warrants Redeemable at March 31, 2014

4,082,838

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	NOTE 6	RELATED PARTY TRANSACTIONS
	On March 4, 2014, Mr. Brilon, the Company’s President and Chief Financial Officer purchased a 9.5% Senior Convertible Debenture in the principal amount of $50,000 with the same terms as the Debenture. In connection with the purchase of this debenture, Mr. Brilon received a warrant to purchase 4,545 shares of Common Stock. The warrant has a term of five years from date of issuance and the exercise price of $1.65 per share is subject to adjustment upon the occurrence of certain events as provided in the warrant. Accordingly, the Company recognized a discount of $1,616 on the principal value of $50,000, which discount is being amortized over the three year term of the debenture, and a discount of $330 with respect to the warrant, which discount is being amortized over the five year term of the warrant.
	On December 20, 2013, Mr. Brilon, the Company’s President and Chief Financial Officer, purchased a 9.5% Senior Convertible Debenture (the “Debenture”) in the principal amount of $75,000. The Debenture is due and payable three years after the date of issuance and the principal and unpaid interest thereunder is convertible into shares of the Company’s Common Stock at the election of the holder any time prior to the maturity date at a conversion price equal to $1.50 per share, subject to adjustment upon the occurrence of certain events as provided in the Debenture. In connection with the purchase of the Debenture, Mr. Brilon received a warrant to purchase 6,818 shares of the Common Stock. The warrant has a term of five years from date of issuance and the exercise price of $1.65 per share is subject to adjustment upon the occurrence of certain events as provided in the warrant. Accordingly, the company recognized a discount of $2,382 on the principal value of $75,000, which discount is being amortized over the three year term of the debenture, and a discount of $586 with respect to the warrant, which discount is being amortized over the five year term of the warrant.
	On November 19, 2012, the Company entered into a convertible debenture agreement with a Board Member for $100,000. Under the original terms of the agreement, Interest is payable at 10% per annum, payable on the extended maturity date of December 19, 2014. The Company issued warrants to purchase 10,000 shares of the Company Stock, at an exercise price of $ 1.10. The debenture is convertible into shares of Company Common Stock on or before the Maturity Date, at a conversion rate of $1.10 per share. On June 20, 2013, interest of $5,000 was paid on the debenture.

EARNINGS_LOSS_PER_SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	NOTE 7	EARNINGS (LOSS) PER SHARE
	The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations.
	Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. The Company had net losses for the three months ended March 31, 2014 and 2013, and the effect of including dilutive securities in the earnings per common share would have been anti-dilutive. Accordingly, all options and warrants to purchase common shares (totaling 9,529,641 shares potentially issuable as of March 31, 2014) and shares potentially issuable upon conversion of the convertible debenture (totaling 1,349,667 as of March 31, 2014) were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2014 and 2013.
			Three Months		Three Months
			Ending		Ending
			Mar. 31, 2014		Mar. 31, 2013
	Basic EPS
	Net Loss		$	-1,405,768		-1,256,228
	Weighted Average Shares			26,742,623		22,001,587
	Basic and Diluted Loss Per Share		$	-0.05	$	-0.06

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
		NOTE 8	SUBSEQUENT EVENTS
	From April 1, 2014 through May 13, 2014 the Company raised $1,300,000 through the private placement of Convertible Debentures and warrants.
	The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no additional items to disclose.

BASIS_OF_PRESENTATION_AND_SUMM1

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Consolidation, Policy [Policy Text Block]	'
	Consolidation
	Effective April 30, 2011, Iveda Solutions, Inc. (the “Company”) completed its acquisition of Sole Vision Technologies (dba “MegaSys”), a company based in Taiwan. The consolidated financial statements include the accounts of the Company and MegaSys (from May 1, 2011 through March 31, 2014). All intercompany balances and transactions have been eliminated in consolidation. See Note 8.
Liquidity Disclosure [Policy Text Block]	'
	Going Concern
	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company’s Audit Report on the Financial Statements for the year ended December 31, 2013 contained a going concern qualification. From inception through to March 31, 2014 the Company has generated an accumulated deficit from operations totaling approximately $23.2 million and has used approximately $1.5 million in cash from operations through the three months ended March 31, 2014. The Company’s financial statements for the three months ended March 31, 2014 assume it will continue as a going concern, but to be able to do so it will need to raise additional capital to fund operations until positive operating cash flow is achieved. However, there can be no assurance that it will be able to raise sufficient additional capital to continue operations..  The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from this uncertainty.
	A multi-step plan was adopted by management to enable the Company to continue to operate and begin to report operating profits. The highlights of the plan include:
		•	Through May 1, 2014 the Company raised approximately $3.0 million through the private placement of convertible debentures and warrants and will continue efforts of this nature throughout the remainder of the fiscal year as deemed necessary by the Board of Directors.
		•	In December 2013, the Board of Directors approved a plan for the Company to raise an aggregate amount of $3.6 million in bridge financing, of which approximately $2.0 million was raised as of March 31, 2014, through the sale of Convertible Debentures.
		•	The Board of Directors approved a plan for the Company to engage a financial advisor in connection with a potential capital raise of up to $30 million (“Long Term Financing”).
		•	The Company is actively installing its cloud based software platform with certain telecommunications companies in other countries to create a reoccurring licensing revenue model as well as a distribution channel for proprietary video camera hardware in each respective country.
		•	In the third quarter of 2013, the Company launched two new camera lines in collaboration with MegaSys, its Taiwan subsidiary and Industrial Technology Research Institute (ITRI), its nonprofit research and development partner in Taiwan. These products are enablers of the Company’s video hosting services.
			The Company has recently developed two other standalone services:
			IvedaMobile™ – a cloud-hosting service that turns any smartphone or tablet into a mobile, cloud video streaming device. This was developed with ITRI.
			IvedaXchange™ – In collaboration with a technology partner, the Company developed a real-time situational awareness dashboard to enable organizations instant access to vital and filtered information such as emergency situations, location of critical assets, video monitoring, and local news. IvedaXchange is well-suited for law enforcement agencies and schools.
		•	The Company intends to continue to participate in industry and vertical tradeshows to launch new products, generate leads, solicit resellers and other sales channels, and identify potential technology partners.
		•	In December 2013, Iveda hired Bob Brilon as our Chief Financial Officer and Executive Vice President of Business Development. He has strong ties with the investment community and has extensive experience in mergers and acquisitions, strategic growth planning, and interacting with domestic and foreign institutional investors, which will be instrumental to our market expansion, global distribution of our cloud video hosting platform and services, and raising capital to fund our growth. In February 2014, the board of Directors appointed Mr. Brilon as the Company’s President.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	'
	Concentrations
	Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts receivable.
	Substantially all cash is deposited in two financial institutions, one in the United States and one in Taiwan. At times, amounts on deposit in the United States may be in excess of the FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 million. At times, amounts on deposit in Taiwan may be in excess of the CDIC insurance limit.
	Accounts receivable are unsecured, and the Company is at risk to the extent such amount becomes uncollectible. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. Revenue from two customers represented approximately 51% of total revenues for the three months ended March 31, 2014, and approximately 78% of total accounts receivable at March 31, 2014.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	'
	Intangible Assets and Goodwill
	Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MegaSys. Such assets are being amortized over their estimated useful lives ranging from six months to ten years. Other Intangible Assets were fully amortized as of September 30, 2013. Future amortization of Intangible Assets is as follows:
	Trademarks
	2014		$	15,000
	2015			20,000
	2016			20,000
	2017			20,000
	Thereafter			66,666
	Total		$	141,666
	Goodwill represents the excess of the purchase price of MegaSys over the net assets acquired. Goodwill is tested annually for impairment or more frequently if indicators of impairment exist.
Fair Value of Financial Instruments, Policy [Policy Text Block]	'
	Fair Value of Financial Instruments
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2014. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts receivable, accounts payable, accrued expenses, convertible notes and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand.
Derivatives, Policy [Policy Text Block]	'
	Derivative Liabilities
	The Convertible Debentures include both a conversion option and detachable warrants that are being accounted for as derivative liabilities because of anti-dilution provisions, which under US GAAP, prevents them from being indexed to the Company’s stock triggering derivative accounting. The fair value of the conversion option and detachable warrants is carried on the face of the accompanying balance sheet as a Derivative Liability, in current liabilities because the underlying instruments are convertible by the holder at any time until maturity. Any change in fair value of the derivative liability is reported as a gain or loss on derivative liability in the accompanying statement of operations.
Segment Reporting, Policy [Policy Text Block]	'
	Segment Information
	The Company conducts operations in various geographic regions outside the United States. The operations and the customer base conducted in the foreign countries are similar to the United States operations. The net revenues and net assets (liabilities) for other significant geographic regions outside the United States are as follows:
			Net Revenues			Net Assets
						(Liabilities)
	United States		$	142,510		$	-1,265,181
	Asia		$	171,554		$	481,258
	Mexico		$	60,800			-
	Furthermore, due to operations in various geographic locations, the Company is susceptible to changes in national, regional and local economic conditions, demographic trends, consumer confidence in the economy and discretionary spending priorities that may have a material adverse effect on the Company’s future operations and results.
	The Company is required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. These taxes and fees are legal assessments to the customer, for which the Company has a legal obligation to act as a collection agent. Because the Company does not retain these taxes and fees, the Company does not include such amounts in revenue. The Company records a liability when the amounts are collected and relieves the liability when payments are made to the applicable governmental agencies.
	The Company operates as two reportable business segments in defined in ASC 280, "Segment Reporting" Each business segment has a chief operating decision maker and management personnel which review their business segment’s performance as it relates to revenue, operating profit and operating expenses.
			Three Months			Three Months		Condensed
			Ended March 31, 2014			Ended March 31, 2014		Consolidated
			Iveda Solutions, Inc.			MegaSys		Total
	Revenue		$	203,309		$	171,554	$	374,863
	Cost of Revenue			175,481			35,053		210,534
	Gross Profit			27,828			136,501		164,329
	Depreciation and Amortization.			51,319			3,005		54,324
	General and Administrative			1,287,847			185,559		1,473,406
	Loss from Operations			-1,311,338			-52,063		-1,363,401
	Foreign Currency Gain (Loss)			-200			2,434		2,234
	Gain on derivatives			11,600			-		11,600
	Interest Income			-			3		3
	Interest Expense			-52,941			-3,063		-56,004
	Loss Before Income Taxes			-1,352,879			-52,689		-1,405,568
	Provision For Income Taxes			-			-		-
	Net Loss		$	-1,352,879		$	-52,689	$	-1,405,568
	Revenues as shown below represent sales to external customers for each segment. Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories, property and equipment for operating segments are regularly reviewed by management and are therefore provided below.
			Three Months Ended
			March 31,
			2014			2013
	Revenues
	United States		$	203,309		$	147,249
	Republic of China (Taiwan)			171,554			467,973
			$	374,863		$	615,222
			Three Months Ended
			March 31,
			2014			2013
	Operating earnings (loss)
	United States		$	-1,311,338		$	-1,138,281
	Republic of China (Taiwan)			-52,063			-82,528
			$	-1,363,401		$	-1,220,809
			Three Months Ended
			March 31,
			2014			2013
	Property and equipment
	United States		$	520,178		$	455,416
	Republic of China (Taiwan)			38,153			25,557
			$	558,331		$	480,973
			Three Months Ended
			March 31,
			2014		2013
	Additions to long-lived assets
	United States		$	129,087		$	16,656
	Republic of China (Taiwan)			8,042			-
			$	137,129		$	16,656
			Three Months Ended
			March 31,
			2014			2013
	Inventory
	United States		$	166,679		$	32,294
	Republic of China (Taiwan)			227,748			129,017
			$	394,427		$	161,311
			Three Months Ended
March 31,
		2014			2013
Total Assets
United States		$	1,728,682		$	3,111,469
Republic of China (Taiwan)			2,552,631			2,546,165
		$	4,281,313		$	5,657,634
Reclassification, Policy [Policy Text Block]	'
	Reclassification
	Certain amounts in 2013 may have been reclassified to conform to the 2014 presentation.
New Accounting Pronouncements, Policy [Policy Text Block]	'
	New Accounting Pronouncements
	In March 2014 FASB issued Accounting Standards Update (ASU) No. 2014-07, Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements. The guidance addresses the consolidation of lessors in certain common control leasing arrangements and is based on a consensus reached by the Private Company Council (PCC).
	Under current U.S. GAAP, a company is required to consolidate an entity in which it has a controlling financial interest. The assessment of controlling financial interest is performed under either: (a) a voting interest model; or (b) a variable interest entity model. In a variable interest entity model, the company has a controlling financial interest when it has: (a) the power to direct the activities that most significantly affect the economic performance of the entity; and (b) the obligation to absorb losses or the right to receive benefits of the entity that could be potentially significant to the entity.
	To determine which model applies, a company preparing financial statements must first determine whether it has a variable interest in the entity being evaluated for consolidation and whether that entity is a variable interest entity.
	The new guidance allows a private company to elect (when certain conditions exist) not to apply the variable interest entity guidance to a lessor under common control. Instead, the private company would make certain disclosures about the lessor and the leasing arrangement.
	Under the amendments in this ASU, a private company lessee could elect an alternative not to apply variable interest entity guidance to a lessor when:
		⋅	-The private company lessee and the lessor are under common control;
		⋅	-The private company lessee has a leasing arrangement with the lessor;
		⋅	-Substantially all of the activity between the private company lessee and the lessor is related to the leasing activities (including supporting leasing activities) between those two companies, and
		⋅	-If the private company lessee explicitly guarantees or provides collateral for any obligation of the lessor related to the asset leased by the private company, then the principal amount of the obligation at inception does not exceed the value of the asset leased by the private company from the lessor.
			If elected, the accounting alternative should be applied to all leasing arrangements meeting the above conditions. The alternative should be applied retrospectively to all periods presented, and is effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for all financial statements that have not yet been made available for issuance.
	In April 2014 FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP.
	Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment.
	In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations.
	The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations.
	The amendments in this ASU enhance convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). Part of the new definition of discontinued operation is based on elements of the definition of discontinued operations in IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations.
	The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. For most nonpublic organizations, it is effective for annual financial statements with fiscal years beginning on or after December 15, 2014. Early adoption is permitted.

BASIS_OF_PRESENTATION_AND_SUMM2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	'
	Future amortization of Intangible Assets is as follows:
	Trademarks
	2014	$	15,000
	2015		20,000
	2016		20,000
	2017		20,000
	Thereafter		66,666
	Total	$	141,666
Schedule of Segment Reporting Information, by Segment [Table Text Block]	'
	The net revenues and net assets (liabilities) for other significant geographic regions outside the United States are as follows:
		Net Revenues			Net Assets
					(Liabilities)
	United States	$	142,510		$	-1,265,181
	Asia	$	171,554		$	481,258
	Mexico	$	60,800			-
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	'
	The Company operates as two reportable business segments in defined in ASC 280, "Segment Reporting" Each business segment has a chief operating decision maker and management personnel which review their business segment’s performance as it relates to revenue, operating profit and operating expenses.
		Three Months			Three Months		Condensed
		Ended March 31, 2014			Ended March 31, 2014		Consolidated
		Iveda Solutions, Inc.			MegaSys		Total
	Revenue	$	203,309		$	171,554	$	374,863
	Cost of Revenue		175,481			35,053		210,534
	Gross Profit		27,828			136,501		164,329
	Depreciation and Amortization.		51,319			3,005		54,324
	General and Administrative		1,287,847			185,559		1,473,406
	Loss from Operations		-1,311,338			-52,063		-1,363,401
	Foreign Currency Gain (Loss)		-200			2,434		2,234
	Gain on derivatives		11,600			-		11,600
	Interest Income		-			3		3
	Interest Expense		-52,941			-3,063		-56,004
	Loss Before Income Taxes		-1,352,879			-52,689		-1,405,568
	Provision For Income Taxes		-			-		-
	Net Loss	$	-1,352,879		$	-52,689	$	-1,405,568
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	'
	Revenues as shown below represent sales to external customers for each segment. Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories, property and equipment for operating segments are regularly reviewed by management and are therefore provided below.
		Three Months Ended
		March 31,
		2014			2013
	Revenues
	United States	$	203,309		$	147,249
	Republic of China (Taiwan)		171,554			467,973
		$	374,863		$	615,222
		Three Months Ended
		March 31,
		2014			2013
	Operating earnings (loss)
	United States	$	-1,311,338		$	-1,138,281
	Republic of China (Taiwan)		-52,063			-82,528
		$	-1,363,401		$	-1,220,809
		Three Months Ended
		March 31,
		2014			2013
	Property and equipment
	United States	$	520,178		$	455,416
	Republic of China (Taiwan)		38,153			25,557
		$	558,331		$	480,973
		Three Months Ended
		March 31,
		2014		2013
	Additions to long-lived assets
	United States	$	129,087		$	16,656
	Republic of China (Taiwan)		8,042			-
		$	137,129		$	16,656
		Three Months Ended
		March 31,
		2014			2013
	Inventory
	United States	$	166,679		$	32,294
	Republic of China (Taiwan)		227,748			129,017
		$	394,427		$	161,311
		Three Months Ended
		March 31,
		2014			2013
	Total Assets
	United States	$	1,728,682		$	3,111,469
	Republic of China (Taiwan)		2,552,631			2,546,165
		$	4,281,313		$	5,657,634

SHORTTERM_DEBT_Tables

SHORT-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of Short-term Debt [Table Text Block]	'
	The short term debt balances were as follows:
		March 31		December 31
		2014		2013
	Loan from Shanghai Commercial & Savings Bank at various interest rates ranging from
	1% per annum to 3.26%. Due at various dates from April 2014 – September 2014.	$	95,337	$	60,291
	Loan from Hua Nan Bank at various interest rates ranging from 1% per annum
	to 3% per annum. Due date is September 2014.		328,600
	Loan from Bank SinoPac at various interest rates ranging from 1% per annum
	to 3.26% per annum. Due date is August 2014.		98,580
	Balance at end of period	$	522,517	$	60,291

STOCK_OPTION_PLAN_AND_WARRANTS1

STOCK OPTION PLAN AND WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2014
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	'
	Stock option transactions during the three months ended March 31, 2014 were as follows:
		Three months ended March 31, 2014
		Shares		Weighted -
				Average
				Exercise Price
	Outstanding at Beginning of Year		5,693,322	$	1.07
	Granted		130,000		1.71
	Exercised		-56,345		0.1
	Forfeited or Canceled		-127,750		1.16
	Outstanding at End of Period		5,639,227		1.09
	Options Exercisable at Period-End		4,612,441	$	1.33
	Weighted-Average Fair Value of Options Granted During the Period	$	0.44
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]	'
	Information with respect to stock options outstanding and exercisable as of March 31, 2014 is as follows:
		Options Outstanding						Options Exercisable
		Number		Weighted -				Number
		Outstanding		Average		Weighted -		Exercisable		Weighted -
	Range of	at		Remaining		Average		At		Average
	Exercise	Mar. 31,		Contractual		Exercise		Mar. 31,		Exercise
	Prices	2014		Life		Price		2014		Price
	$ 0.10 - $1.80		5,639,227	7.4 Years		$	1.09		4,612,441	$	1.33
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
	The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted.
		2014
	Expected Life	6.25 yrs
	Dividend Yield	0	%
	Expected Volatility	24.22	%
	Risk-Free Interest Rate	2.73	%
Warrant [Member]	'
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	'
	Stock warrant transactions during the three months ended March 31, 2014 were as follows:
	Outstanding at December 31, 2013	3,883,641
	Granted	199,197
	Exercised	-
	Forfeited or Canceled	-
	Warrants Redeemable at March 31, 2014	4,082,838

EARNINGS_LOSS_PER_SHARE_Tables

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
	The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations.
		Three Months		Three Months
		Ending		Ending
		Mar. 31, 2014		Mar. 31, 2013
	Basic EPS
	Net Loss	$	-1,405,768		-1,256,228
	Weighted Average Shares		26,742,623		22,001,587
	Basic and Diluted Loss Per Share	$	-0.05	$	-0.06

BASIS_OF_PRESENTATION_AND_SUMM3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Trademarks [Member], USD $)	Mar. 31, 2014
Trademarks [Member]	'
Accounting Policies [Line Items]	'
2014	$15,000
2015	20,000
2016	20,000
2017	20,000
Thereafter	66,666
Total	$141,666

BASIS_OF_PRESENTATION_AND_SUMM4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accounting Policies [Line Items]	'	'
Net Revenues	$158,801	$169,009
United States [Member]	'	'
Accounting Policies [Line Items]	'	'
Net Revenues	142,510	'
Net Assets (Liabilities)	-1,265,181	'
Asia [Member]	'	'
Accounting Policies [Line Items]	'	'
Net Revenues	171,554	'
Net Assets (Liabilities)	481,258	'
Mexico [Member]	'	'
Accounting Policies [Line Items]	'	'
Net Revenues	60,800	'
Net Assets (Liabilities)	$0	'

BASIS_OF_PRESENTATION_AND_SUMM5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accounting Policies [Line Items]	'	'
Revenue	$374,864	$615,222
Cost of Revenue	210,534	564,948
Gross Profit	164,330	50,274
Depreciation and Amortization.	54,324	57,084
Loss from Operations	-1,363,401	-1,220,809
Foreign Currency Gain (Loss)	2,234	-189
Interest Expense	-56,004	-18,730
Loss Before Income Taxes	-1,405,568	-1,256,228
Provision For Income Taxes	0	0
Net Loss	-1,405,568	-1,256,228
Iveda Solutions Inc [Member]	'	'
Accounting Policies [Line Items]	'	'
Revenue	203,309	'
Cost of Revenue	175,481	'
Gross Profit	27,828	'
Depreciation and Amortization.	51,319	'
General and Administrative	1,287,847	'
Loss from Operations	-1,311,338	'
Foreign Currency Gain (Loss)	-200	'
Gain on derivatives	11,600	'
Interest Income	0	'
Interest Expense	-52,941	'
Loss Before Income Taxes	-1,352,879	'
Provision For Income Taxes	0	'
Net Loss	-1,352,879	'
Megasys [Member]	'	'
Accounting Policies [Line Items]	'	'
Revenue	171,554	'
Cost of Revenue	35,053	'
Gross Profit	136,501	'
Depreciation and Amortization.	3,005	'
General and Administrative	185,559	'
Loss from Operations	-52,063	'
Foreign Currency Gain (Loss)	2,434	'
Gain on derivatives	0	'
Interest Income	3	'
Interest Expense	-3,063	'
Loss Before Income Taxes	-52,689	'
Provision For Income Taxes	0	'
Net Loss	-52,689	'
Condensed Consolidated [Member]	'	'
Accounting Policies [Line Items]	'	'
Revenue	374,863	'
Cost of Revenue	210,534	'
Gross Profit	164,329	'
Depreciation and Amortization.	54,324	'
General and Administrative	1,473,406	'
Loss from Operations	-1,363,401	'
Foreign Currency Gain (Loss)	2,234	'
Gain on derivatives	11,600	'
Interest Income	3	'
Interest Expense	-56,004	'
Loss Before Income Taxes	-1,405,568	'
Provision For Income Taxes	0	'
Net Loss	($1,405,568)	'

BASIS_OF_PRESENTATION_AND_SUMM6

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Accounting Policies [Line Items]	'	'	'
Revenues	$374,864	$615,222	'
Operating earnings (loss)	-1,363,401	-1,220,809	'
Property and equipment	558,331	480,973	471,182
Additions to long-lived assets	137,129	16,656	'
Inventory	394,427	161,311	'
Total Assets	4,281,313	5,657,634	3,679,246
United States [Member]	'	'	'
Accounting Policies [Line Items]	'	'	'
Revenues	203,309	147,249	'
Operating earnings (loss)	-1,311,338	-1,138,281	'
Property and equipment	520,178	455,416	'
Additions to long-lived assets	129,087	16,656	'
Inventory	166,679	32,294	'
Total Assets	1,728,682	3,111,469	'
Republic of China (Taiwan) [Member]	'	'	'
Accounting Policies [Line Items]	'	'	'
Revenues	171,554	467,973	'
Operating earnings (loss)	-52,063	-82,528	'
Property and equipment	38,153	25,557	'
Additions to long-lived assets	8,042	0	'
Inventory	227,748	129,017	'
Total Assets	$2,552,631	$2,546,165	'

BASIS_OF_PRESENTATION_AND_SUMM7

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended			3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2014
	USD ($)	USD ($)	Long-term Debt [Member]	Accounts Receivable [Member]	Customer Two [Member]	Minimum [Member]	Maximum [Member]
			USD ($)				TWD
Accounting Policies [Line Items]	'	'	'	'	'	'	'
Accumulated Deficit	$23,207,358	$21,801,790	'	'	'	'	'
Cash CDIC Insured Amount	'	'	'	'	'	'	3,000,000
Concentration Risk Customer Percentage	'	'	'	78.00%	51.00%	'	'
Finite-Lived Intangible Asset, Useful Life	'	'	'	'	'	'6 months	'10 years
Bridge Loan	'	'	3,600,000	'	'	'	'
Net Cash Provided by (Used in) Operating Activities, Total	$1,500,000	'	'	'	'	'	'

SHORTTERM_DEBT_Details

SHORT-TERM DEBT (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Short-term Debt [Line Items]	'	'
Short-term Debt, Total	$522,517	$60,291
Shanghai Commercial And Savings Bank [Member]	'	'
Short-term Debt [Line Items]	'	'
Short Term Bank Loans	95,337	60,291
Hua Nan Bank [Member]	'	'
Short-term Debt [Line Items]	'	'
Short Term Bank Loans	328,600	'
Sinopac Bank [Member]	'	'
Short-term Debt [Line Items]	'	'
Short Term Bank Loans	$98,580	'

SHORTTERM_DEBT_Details_Textual

SHORT-TERM DEBT (Details Textual)	3 Months Ended
	Mar. 31, 2014
Short-term Debt [Line Items]	'
Debt Instrument, Interest Rate, Stated Percentage	9.50%
Hua Nan Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Maturity Date	30-Sep-14
Sinopac Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Maturity Date	31-Aug-14
Maximum [Member] | Shanghai Commercial And Savings Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Maturity Date	30-Sep-14
Debt Instrument, Interest Rate, Stated Percentage	3.26%
Maximum [Member] | Hua Nan Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Maximum [Member] | Sinopac Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Interest Rate, Stated Percentage	3.26%
Minimum [Member] | Shanghai Commercial And Savings Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Maturity Date	30-Apr-14
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Minimum [Member] | Hua Nan Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Minimum [Member] | Sinopac Bank [Member]	'
Short-term Debt [Line Items]	'
Debt Instrument, Interest Rate, Stated Percentage	1.00%

CONVERTIBLE_DEBENTURES_Details

CONVERTIBLE DEBENTURES (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument, Term	'3 years	'
Debt Instrument, Convertible, Conversion Price	$1.50	'
Debt Instrument, Interest Rate, Stated Percentage	9.50%	'
Warrant share Issued	184,045	'
Investment Warrants, Exercise Price	$1.65	'
Warrant share Issued For Financing Cost	192,424	'
Long-term Debt, Gross	$2,024,500	'
Debt Instrument, Increase, Accrued Interest	27,913	'
Debt Instrument, Unamortized Discount	74,645	'
Debt Instrument, Convertible, Remaining Discount Amortization Period	'3 years	'
Derivative Liability, Current	83,876	39,804
Derivative, Loss on Derivative	11,600	'
Convertible Debt, Total	1,949,855	'
Payment of Financing and Stock Issuance Costs, Total	175,635	'
Warrant [Member]	'	'
Convertible Debt, Fair Value Disclosures	79,111	'
Interest Expense [Member]	'	'
Debt Instrument, Unamortized Discount	$43,000	'

EQUITY_Details_Textual

EQUITY (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Equity [Line Items]	'	'
Preferred Stock, Shares Authorized (in shares)	100,000,000	100,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$0.00	$0.00
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period	56,345	'
Shares Issued, Price Per Share (in dollars per share)	$0.10	'

STOCK_OPTION_PLAN_AND_WARRANTS2

STOCK OPTION PLAN AND WARRANTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Shares, Outstanding at Beginning of Year	5,693,322
Shares, Granted	130,000
Shares, Exercised	-56,345
Shares, Forfeited or Canceled	-127,750
Shares, Outstanding at End of Period	5,639,227
Shares, Options Exercisable at Period-End	4,612,441
Weighted-Average Fair Value of Options Granted During the Period	$0.44
Weighted - Average Exercise Price, Outstanding at Beginning of Year	$1.07
Weighted - Average Exercise Price, Granted	$1.71
Weighted - Average Exercise Price, Exercised	$0.10
Weighted - Average Exercise Price, Forfeited or Canceled	$1.16
Weighted - Average Exercise Price, Outstanding at End of Period	$1.09
Weighted - Average Exercise Price, Options Exercisable at Period-End	$1.33

STOCK_OPTION_PLAN_AND_WARRANTS3

STOCK OPTION PLAN AND WARRANTS (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Range of Exercise Prices (Minimum) (in dollars per share)	$0.10
Range of Exercise Prices (Maximum) (in dollars per share)	$1.80
Number of Options, Outstanding at March 31, 2014 (in shares)	5,639,227
Weighted - Average Remaining Contractual Life (in years)	'7 years 4 months 24 days
Options Outstanding, Weighted -Average Exercise Price (in dollars per share)	$1.09
Number of Options, Exercisable at March 31, 2014 (in shares)	4,612,441
Options Exercisable, Weighted - Average Exercise Price (in dollars per share)	$1.33

STOCK_OPTION_PLAN_AND_WARRANTS4

STOCK OPTION PLAN AND WARRANTS (Details 2)	3 Months Ended
	Mar. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Expected Life	'6 years 3 months
Dividend Yield	0.00%
Expected Volatility	24.22%
Risk-Free Interest Rate	2.73%

STOCK_OPTION_PLAN_AND_WARRANTS5

STOCK OPTION PLAN AND WARRANTS (Details 3) (Warrant [Member])	3 Months Ended
	Mar. 31, 2014
Warrant [Member]	'
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Outstanding at December 31, 2013	3,883,641
Granted	199,197
Exercised	0
Forfeited or Canceled	0
Warrants Redeemable at March 31, 2014	4,082,838

STOCK_OPTION_PLAN_AND_WARRANTS6

STOCK OPTION PLAN AND WARRANTS (Details Textual)	3 Months Ended
	Mar. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]	'
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	100.00%
Class of Warrant or Right, Exercise Price of Warrants or Rights	1.65

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	1 Months Ended	3 Months Ended		12 Months Ended	0 Months Ended	1 Months Ended		0 Months Ended	1 Months Ended
	Nov. 19, 2012	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 04, 2014	Dec. 20, 2013	Nov. 19, 2012	Mar. 04, 2014	Dec. 20, 2013	Jun. 20, 2013	Nov. 19, 2012
					President and Chief Financial Officer [Member]	President and Chief Financial Officer [Member]	President and Chief Financial Officer [Member]	President and Chief Financial Officer [Member]	Board [Member]	Board [Member]	Board [Member]
								Warrant [Member]
Related Party Transaction [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Debt Instrument, Face Amount	'	'	'	'	$50,000	$75,000	'	'	'	'	$100,000
Debt Instrument, Interest Rate at Period End	'	'	'	'	'	'	'	'	'	'	10.00%
Debt Instrument, Maturity Date	'	'	'	'	'	'	19-Dec-14	'	'	'	'
Issuance of Warrants to Purchase Common Stock	10,000	'	'	'	4,545	6,818	'	'	10,000	'	'
Amortization of Debt Discount (Premium)	'	-880	0	'	1,616	586	'	330	'	'	'
Debt Instrument, Convertible, Conversion Price	'	$1.50	'	'	'	$1.50	'	'	'	'	$1.10
Debt Instrument, Convertible, Remaining Discount Amortization Period	'	'3 years	'	'	'	'3 years	'	'	'	'	'
Interest Expense, Debt	'	'	'	5,000	'	'	'	'	'	5,000	'
Debt Instrument, Interest Rate, Stated Percentage	'	9.50%	'	'	9.50%	9.50%	'	'	'	'	'
Class of Warrant or Right, Exercise Price of Warrants or Rights	'	1.65	'	'	1.65	1.65	'	'	'	'	1.1
Debt Instrument, Unamortized Discount	'	$74,645	'	'	'	$2,382	'	'	'	'	'

EARNINGS_LOSS_PER_SHARE_Detail

EARNINGS (LOSS) PER SHARE (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Basic EPS	'	'
Net Loss	($1,405,568)	($1,256,228)
Weighted Average Shares (in shares)	26,742,623	22,001,587
Basic and Diluted Loss Per Share (in dollars per share)	($0.05)	($0.06)

EARNINGS_LOSS_PER_SHARE_Detail1

EARNINGS (LOSS) PER SHARE (Details Textual)	3 Months Ended
	Mar. 31, 2014
Common Stock [Member]	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,529,641
Convertible Debt [Member]	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,349,667

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (Subsequent Event [Member], USD $)	1 Months Ended
	13-May-14
Subsequent Event [Member]	'
Subsequent Event [Line Items]	'
Proceeds From Issuance Of Private Placement	$1,300,000