Iveda Solutions (IVDA) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 12, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	Iveda Solutions, Inc.
Entity Central Index Key	1,397,183
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,904,739
Trading Symbol	IVDA
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and Cash Equivalents	$ 242,796	$ 87,900
Restricted Cash	375,239	979,095
Accounts Receivable, Net	539,635	358,804
Inventory, Net	350,029	387,918
Other Current Assets	765,757	647,659
Total Current Assets	2,273,456	2,461,376
PROPERTY AND EQUIPMENT, NET	331,113	532,512
OTHER ASSETS
Intangible Assets, Net	111,666	126,666
Other Assets	191,099	364,320
Total Other Assets	302,765	490,986
Total Assets	2,907,334	3,484,874
CURRENT LIABILITIES
Accounts and Other Payables	1,957,575	2,166,246
Due to Related Parties	798,440	575,000
Short Term Debt	203,850	1,080,500
Derivative Liability	$ 60,626	112,009
Current Portion of Long-Term Debt		34,610
Total Current Liabilities	$ 3,020,491	3,968,365
LONG-TERM DIVIDENDS PAYABLE	558,157	272,901
STOCKHOLDERS' EQUITY
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 27,689,685 and 27,308,357 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	277	273
Additional Paid-In Capital	30,135,163	27,261,762
Accumulated Comprehensive Loss	(42,000)	(35,615)
Less Notes Receivable from Stockholder	(130,000)	(492,194)
Accumulated Deficit	(30,634,794)	(27,490,658)
Total Stockholders' Equity (Deficit)	(671,314)	(756,392)
Total Liabilities and Stockholders' Equity	2,907,334	3,484,874
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred Stock, Value	$ 40	$ 40
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred Stock, Value

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	27,689,685	27,308,357
Common stock, shares outstanding	27,689,685	27,308,357
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	4,003,592	4,003,592
Preferred stock, shares outstanding	4,003,592	4,003,592
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	500	500
Preferred stock, shares issued	302.5	0
Preferred stock, shares outstanding	302.5	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
REVENUE
Equipment Sales	$ 780,886	$ 305,489	$ 1,922,104	$ 707,505
Service Revenue	41,978	162,966	187,229	465,604
Other Revenue	510	20,554	15,425	42,026
TOTAL REVENUE	823,374	489,009	2,124,758	1,215,135
COST OF REVENUE	633,926	397,173	1,627,478	921,574
GROSS PROFIT	189,448	91,836	497,280	293,561
OPERATING EXPENSES	854,600	1,220,132	2,838,326	4,278,944
LOSS FROM OPERATIONS	(665,152)	(1,128,296)	(2,341,046)	(3,985,383)
OTHER INCOME (EXPENSE)
Foreign Currency Gain	1,097	1,226	10,223	11,935
Gain on Derivatives and Debt Conversion	8,792	$ 59,443	51,383	$ 101,444
Gain (Loss) on Disposal of Assets	4,642		(24,812)
Interest Income	6,062	$ 6,365	19,739	$ 8,242
Interest Expense	(309,267)	(140,075)	(376,193)	(316,028)
Total Other Income (Expense)	(288,674)	(73,041)	(319,660)	(194,407)
LOSS BEFORE INCOME TAXES	(953,826)	(1,201,337)	(2,660,706)	(4,179,790)
BENEFIT (PROVISION) FOR INCOME TAXES	120	(38)	(12,733)	(15,917)
NET LOSS	$ (953,706)	$ (1,201,375)	$ (2,673,439)	$ (4,195,707)
BASIC AND DILUTED LOSS PER SHARE	$ (0.03)	$ (0.04)	$ (0.10)	$ (0.16)
WEIGHTED AVERAGE SHARES	27,683,644	27,308,357	27,458,942	26,968,884

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Loss	$ (953,706)	$ (1,201,375)	$ (2,673,439)	$ (4,195,707)
Other Comprehensive Loss
Change in Equity Adjustment from Foreign Currency Translation, Net of Tax	(8,481)	(5,490)	(6,385)	(5,457)
Comprehensive Loss	$ (962,187)	$ (1,206,865)	$ (2,679,824)	$ (4,201,164)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,673,439)	$ (4,195,707)
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities
Depreciation and Amortization	$ 148,630	165,248
Amortization of Debt Discount		24,946
Amortization of Deferred Financing Costs		54,830
Gain on Derivatives and Debt Conversion	$ (51,383)	(101,444)
Stock Option Compensation	100,500	242,000
Bad Debt Expense	3,085	$ 4,699
Loss on Disposal of Assets	24,812
Common Stock Warrants Issued for Interest	14,826	$ 1,285
Prepayment Discount on Stockholder Note Receivable	262,194
(Increase) Decrease in Operating Assets
Accounts Receivable	(208,781)	$ 35,706
Inventory	33,580	(108,424)
Other Current Assets	(139,910)	$ (259,517)
Other Assets	2,727
(Decrease in) Accounts and Other Payables	(195,950)	$ (94,203)
Net Cash Used in Operating Activities	(2,679,109)	(4,230,581)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment	(7,457)	(245,437)
Proceeds from Sale of Equipment	11,325	1,292
Net Cash Provided by (Used in) Investing Activities	3,868	(244,145)
CASH FLOWS FROM FINANCING ACTIVITIES
Changes in Restricted Cash	593,300	5,287
Proceeds from (Payments on) Short-Term Notes Payable/Debt	$ (855,430)	922,627
Proceeds from Short-Term Debt, Related Party		330,000
Proceeds from Exercise of Stock Options	$ 114	8,636
Proceeds from (Payments to) Due to Related Parties	223,440	$ 88,000
Proceeds from Stockholder Note Receivable	100,000
Proceeds from (Payments on) Long-Term Debt, Net of Payments	$ (34,940)	$ 2,960,663
Payments on Capital Lease Obligations		$ (2,536)
Payments on Dividends	$ (2,956)
Deferred Finance Costs, Net		$ (98,978)
Common Stock Issued, Net of (Cost of Capital)		$ (21,084)
Series B Preferred Stock Issued, Net of Cost of Capital	$ 2,811,667
Net Cash Provided by Financing Activities	2,835,195	$ 4,192,615
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(5,058)	(1,918)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	154,896	(284,029)
Cash and Cash Equivalents- Beginning of Period	87,900	559,729
CASH AND CASH EQUIVALENTS - END OF PERIOD	242,796	275,700
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid	56,956	$ 31,456
Income Tax Paid	$ 5,043
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Discount on Convertible Debt		$ 113,474
Establishment of Derivative Liability		$ 126,904
Common Stock Issued for Investor Relations	$ 7,500
Warrants Issued for Interest Expense	$ 7,327
Warrants Issued as Deferred Finance Costs		$ 13,430
Accrued Interest Rolled into Convertible Debentures		$ 78,860
Exercise of Stock Options	$ 114
Deferred Finance Costs Allocated to APIC	313,334
Conversion of Preferred Stock to Common Stock	1
Dividends Converted to Common Stock	$ 2

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	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, 2014. The operating results and cash flows for the nine-month period ended September 30, 2015 are not necessarily indicative of the results that will be achieved for the full fiscal year ending December 31, 2015 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 our opinion, necessary for a fair statement of the financial position and the results of operations for the interim periods. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Estimates are used for, but not limited to, 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 our estimates and assumptions. The statements have been prepared in accordance with accounting principles generally accepted in the United States (“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, 2014 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, we completed our acquisition of Sole Vision Technologies (dba MEGAsys), a company based in Taiwan. We consolidate our financial statements with the financial statements of MEGAsys. All intercompany balances and transactions have been eliminated in consolidation. Going Concern The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Our Audit Report on the Consolidated Financial Statements for the year ended December 31, 2014 contained a going concern qualification. Since inception, we have generated an accumulated deficit from operations of approximately $30.6 million at September 30, 2015 and have used approximately $2.7 million in cash to fund operations through the nine months ended September 30, 2015. As a result, a significant risk exists regarding our ability to continue as a going concern. The condensed consolidated 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. We adopted a multi-step plan to enable us to continue to operate and begin to report operating profits. The highlights of that plan are as follows: ● We developed Sentir ® ● We introduced the ZEE ® ● We developed IvedaMobile ® ● In August 2015, we launched IvedaHome, a cloud-based home automation system, enabled for Sentir. The system is wireless and simple to install for the telco’s residential and small business customers. ● We are actively collaborating with certain foreign telecommunications and manufacturing companies to resell our products and services in their respective countries and are actively engaged in such sales processes with other similar companies. We are licensing Sentir and selling the ZEE line of cameras. ● In December 2014, we entered into an agreement (the “Debenture and Warrant Amendment”) with the holders of certain debentures (the “2013 Debentures”) and certain warrants (the “2013 Warrants”), pursuant to which the holders agreed to cancel the 2013 Debentures and convert them into an aggregate of 3,600,000 shares of our newly issued Series A Preferred Stock. As inducement to enter into the Debenture and Warrant Amendment, we issued to the holders additional warrants to purchase shares of our common stock. ● As of the final closing of a private placement on March 13, 2015, we raised approximately $3.1 million through the sale of Series B Preferred Stock. ● During July 2014 we launched a new website highlighting our licensing business model, which focuses on telecommunications companies, data centers, ISPs, cable companies, and other similar organizations. ● We reduced our U.S.-based segment operating costs by eliminating our direct project-based sales channel and all costs related to project-based sales and operations to focus our activities and resources on licensing Sentir. ● In November 2013, we hired Bob Brilon as our Chief Financial Officer and Executive Vice President of Business Development. Mr. Brilon has strong ties with the investment community and has extensive experience with strategic growth planning and domestic and foreign institutional investors, which have been and will continue to be instrumental to our market expansion, global distribution of our cloud video surveillance and data management platform, and raising capital to fund our growth. In February 2014, Mr. Brilon was appointed as our President. Concentrations Financial instruments, which potentially subject us 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 Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Deposits in Taiwan financial institutions are insured by Central Deposit Insurance Corporation (“CDIC”) 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 we are at risk to the extent such amount becomes uncollectible. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. U.S.-based segment revenue from two customers represented approximately 28% of total revenue for the nine months ended September 30, 2015, and four customers represented approximately 91% of the total U.S.-based segment accounts receivable at September 30, 2015. Taiwan-based segment revenue from three customers represented approximately 79% of total revenue for the nine months ended September 30, 2015, and four customers represented approximately 96% of total Taiwan-based segment accounts receivable at September 30, 2015. Intangible Assets 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 nine months to ten years. Other intangible assets are fully amortized at September 30, 2015. Future amortization of trademarks is as follows: 2015 $ 5,000 2016 20,000 2017 20,000 2018 20,000 Thereafter 46,666 Total $ 111,666 Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September 30, 2015 and December 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, and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because either they are short-term in nature and their carrying amounts approximate their fair values or they are receivable or payable on demand. Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at the reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, we use the Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Our derivative liability relates to the 2013 Warrants issued in connection with the 2013 Debentures (subsequently converted to Series A Preferred Stock on December 9, 2014). These warrants contain a ratchet provision, which allows the exercise price to adjust downward based on certain events. Segment Information We conduct operations in various geographic regions. The operations conducted and the customer bases located in the foreign countries are similar to the operations conducted and the customer bases located in the United States. The net revenue and net assets (liabilities) for other significant geographic regions are as follows: September 30, 2015 Net Revenue Net Assets (Liabilities) United States $ 201,032 $ (553,187 ) Republic of China (Taiwan) $ 1,923,726 $ (118,127 ) Furthermore, due to operations in various geographic locations, we are 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 our future operations and results. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit them back to the applicable governmental agencies on a periodic basis. The taxes and fees are legal assessments to the customer, for which we have a legal obligation to act as a collection agent. Because we do not retain the taxes and fees, we do not include such amounts in revenue. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable governmental agencies. We operate two reportable business segments as defined in ASC 280, “Segment Reporting.” We have a U.S.-based segment, Iveda, and a Taiwan-based segment, MEGAsys. Each segment has a chief operating decision maker and management personnel who review their respective segment’s performance as it relates to revenue, operating profit, and operating expenses. Statements of operations for the three and nine months ended September 30, 2015 for each of our reporting segments are provided below. Three Months Three Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 52,797 $ 770,577 $ 823,374 Cost of Revenue 37,546 596,380 633,926 Gross Profit 15,251 174,197 189,448 Depreciation and Amortization 36,236 3,092 39,328 General and Administrative 683,358 131,914 815,272 Gain (Loss) from Operations (704,343 ) 39,191 (665,152 ) Foreign Currency Gain 929 168 1,097 Gain on Derivatives 8,792 - 8,792 Gain on Disposal of Assets, Net 4,642 - 4,642 Interest Income 6,068 (6 ) 6,062 Interest Expense (300,071 ) (9,196 ) (309,267 ) Gain (Loss) Before Income Taxes (983,983 ) 30,157 (953,826 ) Benefit (Provision) for Income Taxes - 120 120 Net Income (Loss) $ (983,983 ) $ 30,277 $ (953,706 ) Nine Months Nine Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 201,032 $ 1,923,726 $ 2,124,758 Cost of Revenue 166,589 1,460,889 1,627,478 Gross Profit 34,443 462,837 497,280 Depreciation and Amortization 137,366 11,264 148,630 General and Administrative 2,341,815 347,881 2,689,696 Gain (Loss) from Operations (2,444,738 ) 103,692 (2,341,046 ) Foreign Currency Gain 8,644 1,579 10,223 Gain on Derivatives 51,383 - 51,383 Loss on Disposal of Assets, Net (24,812 ) - (24,812 ) Interest Income 18,273 1,466 19,739 Interest Expense (348,584 ) (27,609 ) (376,193 ) Gain (Loss) Before Income Taxes (2,739,834 ) 79,128 (2,660,706 ) Benefit (Provision) for Income Taxes - (12,733 ) (12,733 ) Net Income (Loss) $ (2,739,834 ) $ 66,395 $ (2,673,439 ) Revenue as shown below represents sales to external customers for each segment. Intercompany revenue is immaterial and has been eliminated. Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories and property and equipment for operating segments are regularly reviewed by management and are therefore provided below. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue United States $ 52,797 $ 270,142 $ 201,032 $ 791,911 Republic of China (Taiwan) 770,577 218,867 1,923,726 423,224 $ 823,374 $ 489,009 $ 2,124,758 $ 1,215,135 Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Operating Earnings (Loss) United States $ (704,343 ) $ (1,061,072 ) $ (2,444,738 ) $ (3,856,447 ) Republic of China (Taiwan) 39,191 (67,224 ) 103,692 (128,936 ) $ (665,152 ) $ (1,128,296 ) $ (2,341,046 ) $ (3,985,383 ) Nine Months Ended September 30, 2015 2014 Property and Equipment, Net United States $ 324,064 $ 543,580 Republic of China (Taiwan) 7,049 20,966 $ 331,113 $ 564,546 Nine Months Ended September 30, 2015 2014 Additions to (Deletions from) Long-Lived Assets United States $ (6,295 ) $ 245,437 Republic of China (Taiwan) (1,162 ) - $ (7,457 ) $ 245,437 Nine Months Ended September 30, 2015 2014 Inventory United States $ 247,810 $ 318,560 Republic of China (Taiwan) 102,219 119,109 $ 350,029 $ 437,669 Nine Months Ended September 30, 2015 2014 Total Assets United States $ 1,110,608 $ 1,583,716 Republic of China (Taiwan) 1,796,726 2,236,931 $ 2,907,334 $ 3,820,647 Reclassification Certain amounts in 2014 may have been reclassified to conform to the 2015 presentation. New Accounting Standards There were no new standards recently issued which would have an impact on our operations or disclosures.

Short-Term Debt

Short-Term Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Short-Term Debt	NOTE 2 SHORT-TERM DEBT The short term debt balances were as follows: September 30, 2015 December 31, 2014 Loan from Shanghai Bank at 3.24% interest rate per annum. Due July - March 2016. $ 52,850 $ 325,500 Loan from Hua Nan Bank at 3.26% interest rate per annum. Due November - December 2015. 151,000 315,000 Loan from SinoPac Bank at 3.26% interest rate per annum. Due July 2015. - 315,000 KTV Holding, LLC at 9.5% interest rate per annum. Paid January 26, 2015. - 75,000 A&A Property Investments, Inc. at 9.5% interest rate per annum. Paid January 26, 2015 - 50,000 Balance at end of period $ 203,850 $ 1,080,500

Equity

Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Equity	NOTE 3 EQUITY Preferred Stock We are currently authorized to issue up to 100,000,000 shares of preferred stock, par value $0.00001 per share, 10,000,000 shares of which are designated as Series A Preferred Stock and 500 shares of which are designated as Series B Preferred Stock. Our Articles of Incorporation authorize the issuance of shares of preferred stock with designations, rights, and preferences determined from time to time by our Board of Directors. Accordingly, our Board of Directors is empowered, without stockholder approval, to issue preferred stock with dividend, liquidation, conversion, voting, or other rights which could adversely affect the voting power or other rights of the stockholders of our common stock. In the event of issuance, the preferred stock could be utilized, under certain circumstances, as a method of discouraging, delaying, or preventing a change in control of our company. Series A Preferred Stock We are authorized to issue up to 10,000,000 shares of Series A Preferred Stock. Each share of Series A Preferred Stock accrues cumulative dividends at a rate of 9.5% per annum on the original issue price of $1.00 per share. Accrued but unpaid dividends are payable by us, either in cash or in shares of our common stock, upon the occurrence of a Liquidation Event (as defined in our Articles of Incorporation) or upon conversion of the shares into shares of our common stock. In addition, in the event of any liquidation, dissolution, or winding up of our company, the holders of Series A Preferred Stock are entitled to receive distributions of any of the assets of our company prior and in preference to the holders of our common stock, but after distribution of any assets of our company to the holders of our Series B Preferred Stock in an amount equal to the Series B Preferred Stock’s original issue price plus any accrued but unpaid dividends. Each share of Series A Preferred Stock is convertible at the option of the holder, at any time, into shares of our common stock equal to the original issue price divided by an adjusted conversion price of $0.97 per share of Series A Preferred Stock, subject to certain adjustments. On June 30, 2017, all shares of Series A Preferred Stock not already converted will automatically convert into shares of our common stock at the then-applicable conversion price. The holders of Series A Preferred Stock have the same voting rights as, and vote as a single class with, the holders of our common stock. Each holder of our Series A Preferred Stock is entitled to the number of votes equal to the number of shares of our common stock into which such shares of Series A Preferred Stock may be converted. In addition, in the event we sell, grant, or issue any Common Stock Equivalent (as defined in our Articles of Incorporation) . Series B Preferred Stock We are authorized to issue up to 500 shares of Series B Preferred Stock. Each share of Series B Preferred Stock accrues dividends at a rate of 9.5% per annum on the original issue price of $10,000 per share. Dividends on the Series B Preferred Stock accrue daily and compound annually. All accrued but unpaid dividends on the Series B Preferred Stock must be paid, declared, or set aside prior to the declaration of any dividend on any class of stock that is junior in preference to the Series B Preferred Stock. Dividends on the Series B Preferred Stock are paid quarterly, beginning on July 1, 2015 in either cash or shares of our common stock. In addition, all accrued but unpaid dividends are payable by us, either in cash or in shares of our common stock, upon the occurrence of a Liquidation Event (as defined in our Articles of Incorporation) or upon the conversion of the shares into shares of our common stock. In the event of any liquidation, dissolution, or winding up of our company, the holders of Series B Preferred Stock are entitled to receive distributions of any of the assets of our company equal to 100% of the original issue price plus all accrued but unpaid dividends prior and in preference to the holders of Series A Preferred Stock and holders of our common stock. We also have the option to redeem all, but not less than all, of the Series B Preferred Stock, provided that certain conditions have been met. Should we choose to redeem the outstanding shares of our Series B Preferred Stock, we are required to pay the original purchase price plus all accrued but unpaid dividends. Each share of Series B Preferred Stock is convertible at the option of the holder, at any time, into shares of our common stock equal to the original issue price divided by an initial conversion price of $0.75 per share of Series B Preferred Stock, subject to certain adjustments. On December 31, 2017, all shares of our Series B Preferred Stock not already converted will automatically convert into shares of our common stock at the then-applicable conversion price. The holders of Series B Preferred Stock have no voting rights, except as are expressly provided in our Articles of Incorporation or required by law. Without the approval of at least a majority of the outstanding Series B Preferred Stock, we may not authorize or issue (i) any additional or other shares of capital stock that are of senior rank to the shares of Series B Preferred Stock in respect of the preferences as to dividends, distributions, or payments upon the liquidation, dissolution, and winding up of our company, (ii) any additional or other shares of capital stock that are of equal rank to the shares of Series B Preferred Stock in respect of the preferences as to dividends, distributions, or payments upon the liquidation, dissolution, and winding up of our company, or (iii) any capital stock junior in preference to the Series B Preferred Stock having a maturity date that is prior to the maturity date of the Series B Preferred Stock. Furthermore, if we consummate a Fundamental Transaction (as defined in our Articles of Incorporation) while shares of our Series B Preferred Stock are outstanding, then the holders of those outstanding shares have the right to receive, upon conversion of the Series B Preferred Stock, the same amount and kind of securities, cash, or property as they would have received if they would have been holders of the number of shares of common stock issuable upon conversion in full of all shares of our Series B Preferred Stock immediately prior to the Fundamental Transaction. In addition, in the event we sell, grant, or issue any Common Stock Equivalent (as defined in our Articles of Incorporation) at a price per share that is lower than the then-applicable conversion price for the Series B Preferred Stock (the “Effective Price”), the conversion price for the Series B Preferred Stock will be adjusted to the Effective Price. If we effectuate a stock split or subdivision of our common stock or our Board of Directors declares a dividend payable in our common stock, the conversion price for the Series B Preferred Stock will be appropriately decreased to protect the Series B Preferred Stock holders from any dilutive effect of the stock split, subdivision, or stock dividend. Similarly, if the number of shares of our common stock outstanding decreases due to a reverse stock split or other combination of the outstanding shares of our common stock, then the applicable conversion price of the Series B Preferred Stock will increase in order to proportionately decrease the number of shares issuable upon conversion. Holders of our Series B Preferred Stock have no sinking fund rights. Common Stock We are authorized to issue up to 100,000,000 shares of common stock, par value $0.00001 per share. All outstanding shares of our common stock are of the same class and have equal rights and attributes. The holders of our common stock are entitled to one vote per share on all matters submitted to a vote of the stockholders of our company. Our common stock does not have cumulative voting rights. Persons who hold a majority of the outstanding shares of our common stock entitled to vote on the election of directors can elect all of the directors who are eligible for election. Holders of our common stock are entitled to share equally in dividends, if any, as may be declared from time to time by our Board of Directors. In the event of liquidation, dissolution, or winding up of our company, subject to the preferential liquidation rights of any series of preferred stock that we may from time to time designate, the holders of our common stock are entitled to share ratably in all of our assets remaining after payment of all liabilities and preferential liquidation rights. Holders of our common stock have no conversion, exchange, sinking fund, redemption, or appraisal rights (other than such as may be determined by the Board of Directors in its sole discretion) and have no preemptive rights to subscribe for any of our securities. During the nine months ended September 30, 2015, we issued 10,000 shares of common stock in partial payment for investor relations services. During the nine months ended September 30, 2015, we issued 236,855 shares of common stock in payment of dividends to preferred stockholders. During the nine months ended September 30, 2015, 1,140 options for common stock were exercised. Notes Receivable from Stockholder In September 2014, an advisor/stockholder of our company exercised warrants to purchase 200,000 and 300,000 shares of common stock, granted at an exercise price of $1.02 and $1.00 per share, respectively, in exchange for 5% promissory notes totaling $504,000 due at the extended maturity date of June 30, 2017. Early payments have been received and $11,806 has been applied to the principal. At September 30, 2015, a prepayment discount was negotiated amending the total outstanding to $230,000. $100,000 was received on September 30, 2015, and $130,000 was received on October 20, 2015.

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Warrants	NOTE 4 STOCK OPTIONS AND WARRANTS Stock Options We have granted non-qualified stock options to employees, contractors, and directors as equity compensation and to debenture holders for the extension of debenture maturity dates. All non-qualified options are generally issued with an exercise price no less than the fair market value of the common stock on the date of the grant as determined by our Board of Directors. Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by us upon grant. Vesting schedules vary by grant, with some fully vesting immediately upon grant and others vesting ratably over a period of time up to four years. Standard vested options may be exercised up to three months following the date of termination of the relationship with the employee, contractor, or director unless alternate terms are specified at grant. The fair values of options are determined using the Black-Scholes option-pricing model. The estimated fair value of options is recognized as expense on the straight-line basis over the options’ vesting periods. Stock option transactions during the nine months ended September 30, 2015 were as follows: Nine months ended September 30, 2015 Shares Weighted- Outstanding at Beginning of Year 5,953,227 $ 1.03 Granted 291,000 0.77 Exercised (1,140 ) 0.10 Forfeited or Canceled (429,083 ) 1.16 Outstanding at End of Period 5,814,004 0.97 Options Exercisable at End of Period 5,750,379 $ 0.98 Weighted-Average Fair Value of Options Granted During the Period $ 0.16 Information with respect to stock options outstanding and exercisable as of September 30, 2015 is as follows: Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $0.10 - $1.75 5,814,004 7 $ 0.97 5,750,379 $ 0.98 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: 2015 Expected Life 6.25 yrs Dividend Yield 0 % Expected Volatility 18.35 % Risk-Free Interest Rate 1.99 % Expected volatility for 2015 and 2014 was estimated by using the Dow Jones U.S. Industry Indices sector classification methodology for industries similar to that in which we operate. 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 the actual expiration date of the grant. Warrants We have periodically issued warrants to purchase shares of common stock as equity compensation to officers, directors, employees, and consultants. We have also issued warrants as incentive in connection with the purchase of debt and equity securities. As of September 30, 2015, warrants to purchase 7,610,303 shares of common stock were outstanding, all of which were issued either as equity compensation or in connection with financing transactions. Vesting schedules vary by grant, with some fully vesting immediately upon grant and others vesting ratably over a period of time up to four years. The warrants expire during a range from two to ten years following the date of the grant. The fair value of warrants is determined using the Black-Scholes option-pricing model. The estimated fair value of warrants is recognized as expense on the straight-line basis over the warrants’ vesting periods. Warrant transactions during the nine months ended September 30, 2015 were as follows: Outstanding at December 31, 2014 3,749,550 Granted 4,369,162 Exercised - Forfeited or Canceled (508,409 ) Warrants Redeemable at September 30, 2015 7,610,303

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 5 RELATED PARTY TRANSACTIONS During June 2015 MEGAsys entered into an unsecured loan agreement with two of its directors, Mr. Cheung and Mr. Shiau for $18,120 and $36,240, respectively. During July 2015 MEGAsys entered into additional unsecured loans from Mr. Cheung for $314,080. All of the loans are at maximum of 8.8% interest per annum and mature December 31, 2015. On December 30, 2014, we entered into a debenture agreement with Joe Farnsworth, a member of our Board of Directors, for $10,000, at 9.5% interest per annum. We paid the principal and accrued interest on the Farnsworth debenture in full on January 26, 2015. On December 9, 2014, we entered into a debenture agreement with Robert Gillen, a member of our Board of Directors, for $100,000, at 9.5% interest per annum and a warrant was granted to purchase 25,000 shares of our common stock at an exercise price of $1.00 per share, with interest and principal payable on January 5, 2015. On January 5, 2015, Mr. Gillen received another warrant to purchase 25,000 shares of our common stock at an exercise price of $1.00 per share. We paid the principal and accrued interest on the Gillen debenture in full on February 4, 2015. On October 14, 2014, we entered into a debenture agreement with Mr. Farnsworth, a member of our Board of Directors, for $35,000, at 9.5% interest per annum. We paid the principal and accrued interest on the Farnsworth debenture in full on February 4, 2015. On September 10, 2014, we entered into a debenture agreement with Alex Kuo, a member of the Board of Directors, for $30,000, through his wife, Li-Min Hsu, at 9.5% interest per annum with interest and principal payable on the extended maturity date of December 31, 2015. As consideration for the extension of the debenture, we granted Mrs. Hsu options to purchase 3,000 shares of our common stock with an exercise price of $0.77 per share. On September 8, 2014, we entered into a debenture agreement with Mr. Kuo’s wife, Li-Min Hsu, for $100,000, at 9.5% interest per annum with interest and principal payable on the extended maturity date of December 31, 2015. As consideration for the extension of the debenture, we granted Mrs. Hsu options to purchase 10,000 shares of our common stock with an exercise price of $0.77 per share. On August 28, 2014, we entered into a debenture agreement with Gregory Omi, a member of the Board of Directors of the Company, for $200,000, at 9.5% interest per annum with interest and principal payable on the extended maturity date of December 31, 2015. As consideration for the extension of the debenture, we granted Mr. Omi options to purchase 20,000 shares of our common stock with an exercise price of $0.77 per share. On November 19, 2012, we entered into a convertible debenture agreement with Mr. Gillen, a member of our Board of Directors, for $100,000, under his company Squirrel-Away, LLC. Under the original terms of the agreement, interest is payable at 10% per annum and became due on December 19, 2014. The debenture was extended to January 5, 2015. On June 20, 2013, interest of $5,000 was paid on the debenture. As consideration for agreeing to extend the maturity date of the debenture to December 31, 2015, we granted Mr. Gillen options to purchase 10,000 shares of our common stock at an exercise price of $0.77 per share.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	NOTE 6 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, as required by ASC No. 260, “Earnings per Share.” Basic earnings per share (“EPS”) is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. We had net losses for the years ended December 31, 2014 and 2013 and the effect of including dilutive securities in the earnings per common share would have been anti-dilutive for the purpose of calculating EPS. Accordingly, all options, warrants, and shares potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the quarters ended September 30, 2015 and 2014 and the nine months ended September 30, 2015 and 2014. Total common stock equivalents that could be convertible into common stock were 21,585,017 and 11,682,521 for September 30, 2015 and 2014, respectively. Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 Basic EPS Net Loss $ (953,706 ) $ (1,201,375 ) $ (2,673,439 ) $ (4,195,707 ) Weighted Average Shares 27,683,644 27,308,357 27,458,942 26,968,884 Basic and Diluted Loss Per Share $ (0.03 ) $ (0.04 ) $ (0.10 ) $ (0.16 )

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 7 SUBSEQUENT EVENTS We signed an agreement with Nguyen Business & Investment Co., Ltd. as our exclusive reseller in Vietnam. We have received a deposit of $50,000 against a committed $1,000,000 prepaid Sentir license to be paid in full on or before December 15, 2015. Nguyen Business & Investment Co., Ltd. has formed Iveda Vietnam CO., LTD (“Iveda Vietnam”) to be the operating entity to license the Sentir platform and purchase hardware such as Iveda’s ZEE plug and play cameras and IvedaHome cloud automation system. The IvedaMobile app, which leverages existing smartphones to stream live video, will also be licensed country-wide by Iveda Vietnam to mobile phone providers. Iveda Vietnam will resell the prepaid Sentir licenses to telecommunications, datacenter and manufacturing customers in Vietnam, with some of which we have previously announced contracts. Iveda Vietnam will facilitate finance and logistics aspects of our current contracts with the largest telecommunications customers in Vietnam. Iveda Vietnam will make working capital available for deposits or payments required by our hardware contract manufacturers to facilitate purchasing by telecom customers on terms acceptable in Vietnam. Upon receipt of the $1,000,000 prepaid license fee, we will grant each of the three principals of Iveda Vietnam a five-year warrant to purchase 100,000 shares of our common stock at $1.00 per share.

Basis of Presentation and Sum14

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Consolidation	Consolidation Effective April 30, 2011, we completed our acquisition of Sole Vision Technologies (dba MEGAsys), a company based in Taiwan. We consolidate our financial statements with the financial statements of MEGAsys. All intercompany balances and transactions have been eliminated in consolidation.
Going Concern	Going Concern The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Our Audit Report on the Consolidated Financial Statements for the year ended December 31, 2014 contained a going concern qualification. Since inception, we have generated an accumulated deficit from operations of approximately $30.6 million at September 30, 2015 and have used approximately $2.7 million in cash to fund operations through the nine months ended September 30, 2015. As a result, a significant risk exists regarding our ability to continue as a going concern. The condensed consolidated 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. We adopted a multi-step plan to enable us to continue to operate and begin to report operating profits. The highlights of that plan are as follows: ● We developed Sentir ® ● We introduced the ZEE ® ● We developed IvedaMobile ® ● In August 2015, we launched IvedaHome, a cloud-based home automation system, enabled for Sentir. The system is wireless and simple to install for the telco’s residential and small business customers. ● We are actively collaborating with certain foreign telecommunications and manufacturing companies to resell our products and services in their respective countries and are actively engaged in such sales processes with other similar companies. We are licensing Sentir and selling the ZEE line of cameras. ● In December 2014, we entered into an agreement (the “Debenture and Warrant Amendment”) with the holders of certain debentures (the “2013 Debentures”) and certain warrants (the “2013 Warrants”), pursuant to which the holders agreed to cancel the 2013 Debentures and convert them into an aggregate of 3,600,000 shares of our newly issued Series A Preferred Stock. As inducement to enter into the Debenture and Warrant Amendment, we issued to the holders additional warrants to purchase shares of our common stock. ● As of the final closing of a private placement on March 13, 2015, we raised approximately $3.1 million through the sale of Series B Preferred Stock. ● During July 2014 we launched a new website highlighting our licensing business model, which focuses on telecommunications companies, data centers, ISPs, cable companies, and other similar organizations. ● We reduced our U.S.-based segment operating costs by eliminating our direct project-based sales channel and all costs related to project-based sales and operations to focus our activities and resources on licensing Sentir. ● In November 2013, we hired Bob Brilon as our Chief Financial Officer and Executive Vice President of Business Development. Mr. Brilon has strong ties with the investment community and has extensive experience with strategic growth planning and domestic and foreign institutional investors, which have been and will continue to be instrumental to our market expansion, global distribution of our cloud video surveillance and data management platform, and raising capital to fund our growth. In February 2014, Mr. Brilon was appointed as our President.
Concentrations	Concentrations Financial instruments, which potentially subject us 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 Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Deposits in Taiwan financial institutions are insured by Central Deposit Insurance Corporation (“CDIC”) 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 we are at risk to the extent such amount becomes uncollectible. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. U.S.-based segment revenue from two customers represented approximately 28% of total revenue for the nine months ended September 30, 2015, and four customers represented approximately 91% of the total U.S.-based segment accounts receivable at September 30, 2015. Taiwan-based segment revenue from three customers represented approximately 79% of total revenue for the nine months ended September 30, 2015, and four customers represented approximately 96% of total Taiwan-based segment accounts receivable at September 30, 2015.
Intangible Assets	Intangible Assets 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 nine months to ten years. Other intangible assets are fully amortized at September 30, 2015. Future amortization of trademarks is as follows: 2015 $ 5,000 2016 20,000 2017 20,000 2018 20,000 Thereafter 46,666 Total $ 111,666
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September 30, 2015 and December 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, and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because either they are short-term in nature and their carrying amounts approximate their fair values or they are receivable or payable on demand.
Derivative Financial Instruments	Derivative Financial Instruments We do not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at the reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, we use the Black-Scholes option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Our derivative liability relates to the 2013 Warrants issued in connection with the 2013 Debentures (subsequently converted to Series A Preferred Stock on December 9, 2014). These warrants contain a ratchet provision, which allows the exercise price to adjust downward based on certain events.
Segment Information	Segment Information We conduct operations in various geographic regions. The operations conducted and the customer bases located in the foreign countries are similar to the operations conducted and the customer bases located in the United States. The net revenue and net assets (liabilities) for other significant geographic regions are as follows: September 30, 2015 Net Revenue Net Assets (Liabilities) United States $ 201,032 $ (553,187 ) Republic of China (Taiwan) $ 1,923,726 $ (118,127 ) Furthermore, due to operations in various geographic locations, we are 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 our future operations and results. We are required to collect certain taxes and fees from customers on behalf of government agencies and remit them back to the applicable governmental agencies on a periodic basis. The taxes and fees are legal assessments to the customer, for which we have a legal obligation to act as a collection agent. Because we do not retain the taxes and fees, we do not include such amounts in revenue. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable governmental agencies. We operate two reportable business segments as defined in ASC 280, “Segment Reporting.” We have a U.S.-based segment, Iveda, and a Taiwan-based segment, MEGAsys. Each segment has a chief operating decision maker and management personnel who review their respective segment’s performance as it relates to revenue, operating profit, and operating expenses. Statements of operations for the three and nine months ended September 30, 2015 for each of our reporting segments are provided below. Three Months Three Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 52,797 $ 770,577 $ 823,374 Cost of Revenue 37,546 596,380 633,926 Gross Profit 15,251 174,197 189,448 Depreciation and Amortization 36,236 3,092 39,328 General and Administrative 683,358 131,914 815,272 Gain (Loss) from Operations (704,343 ) 39,191 (665,152 ) Foreign Currency Gain 929 168 1,097 Gain on Derivatives 8,792 - 8,792 Gain on Disposal of Assets, Net 4,642 - 4,642 Interest Income 6,068 (6 ) 6,062 Interest Expense (300,071 ) (9,196 ) (309,267 ) Gain (Loss) Before Income Taxes (983,983 ) 30,157 (953,826 ) Benefit (Provision) for Income Taxes - 120 120 Net Income (Loss) $ (983,983 ) $ 30,277 $ (953,706 ) Nine Months Nine Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 201,032 $ 1,923,726 $ 2,124,758 Cost of Revenue 166,589 1,460,889 1,627,478 Gross Profit 34,443 462,837 497,280 Depreciation and Amortization 137,366 11,264 148,630 General and Administrative 2,341,815 347,881 2,689,696 Gain (Loss) from Operations (2,444,738 ) 103,692 (2,341,046 ) Foreign Currency Gain 8,644 1,579 10,223 Gain on Derivatives 51,383 - 51,383 Loss on Disposal of Assets, Net (24,812 ) - (24,812 ) Interest Income 18,273 1,466 19,739 Interest Expense (348,584 ) (27,609 ) (376,193 ) Gain (Loss) Before Income Taxes (2,739,834 ) 79,128 (2,660,706 ) Benefit (Provision) for Income Taxes - (12,733 ) (12,733 ) Net Income (Loss) $ (2,739,834 ) $ 66,395 $ (2,673,439 ) Revenue as shown below represents sales to external customers for each segment. Intercompany revenue is immaterial and has been eliminated. Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories and property and equipment for operating segments are regularly reviewed by management and are therefore provided below. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue United States $ 52,797 $ 270,142 $ 201,032 $ 791,911 Republic of China (Taiwan) 770,577 218,867 1,923,726 423,224 $ 823,374 $ 489,009 $ 2,124,758 $ 1,215,135 Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Operating Earnings (Loss) United States $ (704,343 ) $ (1,061,072 ) $ (2,444,738 ) $ (3,856,447 ) Republic of China (Taiwan) 39,191 (67,224 ) 103,692 (128,936 ) $ (665,152 ) $ (1,128,296 ) $ (2,341,046 ) $ (3,985,383 ) Nine Months Ended September 30, 2015 2014 Property and Equipment, Net United States $ 324,064 $ 543,580 Republic of China (Taiwan) 7,049 20,966 $ 331,113 $ 564,546 Nine Months Ended September 30, 2015 2014 Additions to (Deletions from) Long-Lived Assets United States $ (6,295 ) $ 245,437 Republic of China (Taiwan) (1,162 ) - $ (7,457 ) $ 245,437 Nine Months Ended September 30, 2015 2014 Inventory United States $ 247,810 $ 318,560 Republic of China (Taiwan) 102,219 119,109 $ 350,029 $ 437,669 Nine Months Ended September 30, 2015 2014 Total Assets United States $ 1,110,608 $ 1,583,716 Republic of China (Taiwan) 1,796,726 2,236,931 $ 2,907,334 $ 3,820,647
Reclassification	Reclassification Certain amounts in 2014 may have been reclassified to conform to the 2015 presentation.
New Accounting Standards	New Accounting Standards There were no new standards recently issued which would have an impact on our operations or disclosures.

Basis of Presentation and Sum15

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Schedule of Future Amortization of Trademarks	Future amortization of trademarks is as follows: 2015 $ 5,000 2016 20,000 2017 20,000 2018 20,000 Thereafter 46,666 Total $ 111,666
Schedule of Net Revenue and Net Assets (liabilities) for Other Significant Geographic Regions	The net revenue and net assets (liabilities) for other significant geographic regions are as follows: September 30, 2015 Net Revenue Net Assets (Liabilities) United States $ 201,032 $ (553,187 ) Republic of China (Taiwan) $ 1,923,726 $ (118,127 )
Schedule of Reporting Segments	Statements of operations for the three and nine months ended September 30, 2015 for each of our reporting segments are provided below. Three Months Three Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 52,797 $ 770,577 $ 823,374 Cost of Revenue 37,546 596,380 633,926 Gross Profit 15,251 174,197 189,448 Depreciation and Amortization 36,236 3,092 39,328 General and Administrative 683,358 131,914 815,272 Gain (Loss) from Operations (704,343 ) 39,191 (665,152 ) Foreign Currency Gain 929 168 1,097 Gain on Derivatives 8,792 - 8,792 Gain on Disposal of Assets, Net 4,642 - 4,642 Interest Income 6,068 (6 ) 6,062 Interest Expense (300,071 ) (9,196 ) (309,267 ) Gain (Loss) Before Income Taxes (983,983 ) 30,157 (953,826 ) Benefit (Provision) for Income Taxes - 120 120 Net Income (Loss) $ (983,983 ) $ 30,277 $ (953,706 ) Nine Months Nine Months Condensed Ended Sept. 30, 2015 Ended Sept. 30, 2015 Consolidated Iveda MEGAsys Total Revenue $ 201,032 $ 1,923,726 $ 2,124,758 Cost of Revenue 166,589 1,460,889 1,627,478 Gross Profit 34,443 462,837 497,280 Depreciation and Amortization 137,366 11,264 148,630 General and Administrative 2,341,815 347,881 2,689,696 Gain (Loss) from Operations (2,444,738 ) 103,692 (2,341,046 ) Foreign Currency Gain 8,644 1,579 10,223 Gain on Derivatives 51,383 - 51,383 Loss on Disposal of Assets, Net (24,812 ) - (24,812 ) Interest Income 18,273 1,466 19,739 Interest Expense (348,584 ) (27,609 ) (376,193 ) Gain (Loss) Before Income Taxes (2,739,834 ) 79,128 (2,660,706 ) Benefit (Provision) for Income Taxes - (12,733 ) (12,733 ) Net Income (Loss) $ (2,739,834 ) $ 66,395 $ (2,673,439 )
Schedule of Revenues, Additions to Long-Lived assets, Inventories and Property and Equipment for Operating Segments	Additions to long-lived assets as presented in the following table represent capital expenditures. Inventories and property and equipment for operating segments are regularly reviewed by management and are therefore provided below. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenue United States $ 52,797 $ 270,142 $ 201,032 $ 791,911 Republic of China (Taiwan) 770,577 218,867 1,923,726 423,224 $ 823,374 $ 489,009 $ 2,124,758 $ 1,215,135 Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Operating Earnings (Loss) United States $ (704,343 ) $ (1,061,072 ) $ (2,444,738 ) $ (3,856,447 ) Republic of China (Taiwan) 39,191 (67,224 ) 103,692 (128,936 ) $ (665,152 ) $ (1,128,296 ) $ (2,341,046 ) $ (3,985,383 ) Nine Months Ended September 30, 2015 2014 Property and Equipment, Net United States $ 324,064 $ 543,580 Republic of China (Taiwan) 7,049 20,966 $ 331,113 $ 564,546 Nine Months Ended September 30, 2015 2014 Additions to (Deletions from) Long-Lived Assets United States $ (6,295 ) $ 245,437 Republic of China (Taiwan) (1,162 ) - $ (7,457 ) $ 245,437 Nine Months Ended September 30, 2015 2014 Inventory United States $ 247,810 $ 318,560 Republic of China (Taiwan) 102,219 119,109 $ 350,029 $ 437,669 Nine Months Ended September 30, 2015 2014 Total Assets United States $ 1,110,608 $ 1,583,716 Republic of China (Taiwan) 1,796,726 2,236,931 $ 2,907,334 $ 3,820,647

Short-Term Debt (Tables)

Short-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	The short term debt balances were as follows: September 30, 2015 December 31, 2014 Loan from Shanghai Bank at 3.24% interest rate per annum. Due July - March 2016. $ 52,850 $ 325,500 Loan from Hua Nan Bank at 3.26% interest rate per annum. Due November - December 2015. 151,000 315,000 Loan from SinoPac Bank at 3.26% interest rate per annum. Due July 2015. - 315,000 KTV Holding, LLC at 9.5% interest rate per annum. Paid January 26, 2015. - 75,000 A&A Property Investments, Inc. at 9.5% interest rate per annum. Paid January 26, 2015 - 50,000 Balance at end of period $ 203,850 $ 1,080,500

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Transactions	Stock option transactions during the nine months ended September 30, 2015 were as follows: Nine months ended September 30, 2015 Shares Weighted- Outstanding at Beginning of Year 5,953,227 $ 1.03 Granted 291,000 0.77 Exercised (1,140 ) 0.10 Forfeited or Canceled (429,083 ) 1.16 Outstanding at End of Period 5,814,004 0.97 Options Exercisable at End of Period 5,750,379 $ 0.98 Weighted-Average Fair Value of Options Granted During the Period $ 0.16
Schedule of Stock Options Outstanding and Exercisable	Information with respect to stock options outstanding and exercisable as of September 30, 2015 is as follows: Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $0.10 - $1.75 5,814,004 7 $ 0.97 5,750,379 $ 0.98
Schedule of Black-Scholes Option-Pricing Model	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: 2015 Expected Life 6.25 yrs Dividend Yield 0 % Expected Volatility 18.35 % Risk-Free Interest Rate 1.99 %
Schedule of Warrant Transactions	Warrant transactions during the nine months ended September 30, 2015 were as follows: Outstanding at December 31, 2014 3,749,550 Granted 4,369,162 Exercised - Forfeited or Canceled (508,409 ) Warrants Redeemable at September 30, 2015 7,610,303

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and Diluted	Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 Basic EPS Net Loss $ (953,706 ) $ (1,201,375 ) $ (2,673,439 ) $ (4,195,707 ) Weighted Average Shares 27,683,644 27,308,357 27,458,942 26,968,884 Basic and Diluted Loss Per Share $ (0.03 ) $ (0.04 ) $ (0.10 ) $ (0.16 )

Basis of Presentation and Sum19

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Mar. 13, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated deficit		$ 27,490,658	$ 30,634,794
Net Cash Used in Operating Activities			2,679,109	$ 4,230,581
Proceeds from issuance of preferred stock			2,811,667
Cash CDIC insured limit			$ 3,000,000
US Based Segment [Member] | Revenue [Member] | Customer Two [Member]
Concentration risk customer percentage			28.00%
US Based Segment [Member] | Accounts Receivable [Member] | Customer Four [Member]
Concentration risk customer percentage			91.00%
Taiwan Based Segment [Member] | Revenue [Member] | Customer Three [Member]
Concentration risk customer percentage			79.00%
Taiwan Based Segment [Member] | Accounts Receivable [Member] | Customer Four [Member]
Concentration risk customer percentage			96.00%
Series A Preferred Stock [Member]
Debentures and convert into aggregate shares		3,600,000
Series B Preferred Stock [Member] | Private Placement [Member]
Proceeds from issuance of preferred stock	$ 3,100,000

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Future Amortization of Trademarks (Details) - Trademarks [Member]	Sep. 30, 2015USD ($)
2,015	$ 5,000
2,016	20,000
2,017	20,000
2,018	20,000
Thereafter	46,666
Total	$ 111,666

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Net Revenue and Net Assets (liabilities) for Other Significant Geographic Regions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Revenue	$ 823,374	$ 489,009	$ 2,124,758	$ 1,215,135
Republic of China (Taiwan) [Member]
Net Revenue	770,577	$ 218,867	1,923,726	$ 423,224
Net Assets (Liabilities)	(118,127)		(118,127)
United States [Member]
Net Revenue			201,032
Net Assets (Liabilities)	$ (553,187)		$ (553,187)

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Reporting Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounting Policies [Line Items]
Revenue	$ 823,374	$ 489,009	$ 2,124,758	$ 1,215,135
Cost of Revenue	633,926	397,173	1,627,478	921,574
Gross Profit	189,448	91,836	497,280	293,561
Depreciation and Amortization	39,328		148,630	165,248
General and Administrative	815,272		2,689,696
Gain (Loss) from Operations	(665,152)	(1,128,296)	(2,341,046)	(3,985,383)
Foreign Currency Gain	1,097	1,226	10,223	11,935
Gain on Derivatives	8,792	$ 59,443	51,383	$ 101,444
Gain on Disposal of Assets, Net	4,642		(24,812)
Interest Income	6,062		19,739
Interest Expense	(309,267)		(376,193)
Gain (Loss) Before Income Taxes	(953,826)	$ (1,201,337)	(2,660,706)	$ (4,179,790)
Benefit (Provision) for Income Taxes	120	(38)	(12,733)	(15,917)
Net Income (Loss)	(953,706)	$ (1,201,375)	(2,673,439)	$ (4,195,707)
Iveda [Member]
Accounting Policies [Line Items]
Revenue	52,797		201,032
Cost of Revenue	37,546		166,589
Gross Profit	15,251		34,443
Depreciation and Amortization	36,236		137,366
General and Administrative	683,358		2,341,815
Gain (Loss) from Operations	(704,343)		(2,444,738)
Foreign Currency Gain	929		8,644
Gain on Derivatives	8,792		51,383
Gain on Disposal of Assets, Net	4,642		(24,812)
Interest Income	6,068		18,273
Interest Expense	(300,071)		(348,584)
Gain (Loss) Before Income Taxes	$ (983,983)		$ (2,739,834)
Benefit (Provision) for Income Taxes
Net Income (Loss)	$ (983,983)		$ (2,739,834)
Megasys [Member]
Accounting Policies [Line Items]
Revenue	770,577		1,923,726
Cost of Revenue	596,380		1,460,889
Gross Profit	174,197		462,837
Depreciation and Amortization	3,092		11,264
General and Administrative	131,914		347,881
Gain (Loss) from Operations	39,191		103,692
Foreign Currency Gain	$ 168		$ 1,579
Gain on Derivatives
Gain on Disposal of Assets, Net
Interest Income	$ (6)		$ 1,466
Interest Expense	(9,196)		(27,609)
Gain (Loss) Before Income Taxes	30,157		79,128
Benefit (Provision) for Income Taxes	120		(12,733)
Net Income (Loss)	$ 30,277		$ 66,395

Basis of Presentation and Sum23

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Revenues, Additions to Long-Lived assets, Inventories and Property and Equipment for Operating Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues	$ 823,374	$ 489,009	$ 2,124,758	$ 1,215,135
Operating Earnings (Loss)	(665,152)	(1,128,296)	(2,341,046)	(3,985,383)
Property and Equipment, Net	331,113	564,546	331,113	564,546	$ 532,512
Additions to (Deletions from) Long-Lived Assets			(7,457)	245,437
Inventory	350,029	437,669	350,029	437,669
Total Assets	2,907,334	3,820,647	2,907,334	3,820,647	$ 3,484,874
United States [Member]
Revenues	52,797	270,142	201,032	791,911
Operating Earnings (Loss)	(704,343)	(1,061,072)	(2,444,738)	(3,856,447)
Property and Equipment, Net	324,064	543,580	324,064	543,580
Additions to (Deletions from) Long-Lived Assets			(6,295)	245,437
Inventory	247,810	318,560	247,810	318,560
Total Assets	1,110,608	1,583,716	1,110,608	1,583,716
Republic of China (Taiwan) [Member]
Revenues	770,577	218,867	1,923,726	423,224
Operating Earnings (Loss)	39,191	(67,224)	103,692	(128,936)
Property and Equipment, Net	7,049	20,966	7,049	$ 20,966
Additions to (Deletions from) Long-Lived Assets			(1,162)
Inventory	102,219	119,109	102,219	$ 119,109
Total Assets	$ 1,796,726	$ 2,236,931	$ 1,796,726	$ 2,236,931

Short-Term Debt - Schedule of S

Short-Term Debt - Schedule of Short-Term Debt (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Balance at end of period	$ 203,850	$ 1,080,500
Shanghai Bank [Member]
Balance at end of period	52,850	325,500
Hua Nan Bank [Member]
Balance at end of period	$ 151,000	315,000
Sinopac Bank [Member]
Balance at end of period		315,000
KTV Holding, LLC [Member]
Balance at end of period		75,000
A&A Property Investments [Member]
Balance at end of period		$ 50,000

Short-Term Debt - Schedule of25

Short-Term Debt - Schedule of Short-Term Debt (Details) (Parenthetical)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Shanghai Bank [Member]
Short term debt interest rate per annum	3.24%	3.24%
Short term debt maturity date range start	Jul. 31, 2015	Jul. 31, 2015
Short term debt maturity date range end	Mar. 31, 2016	Mar. 31, 2016
Hua Nan Bank [Member]
Short term debt interest rate per annum	3.26%	3.26%
Short term debt maturity date range start	Nov. 30, 2015	Nov. 30, 2015
Short term debt maturity date range end	Dec. 31, 2015	Dec. 31, 2015
Sinopac Bank [Member]
Short term debt interest rate per annum	3.26%	3.26%
Short term debt maturity date	Jul. 31, 2015	Jul. 31, 2015
KTV Holding, LLC [Member]
Short term debt interest rate per annum	9.50%	9.50%
A&A Property Investments [Member]
Short term debt interest rate per annum	9.50%	9.50%
MEGAsys Management [Member]
Short term debt maturity date	Dec. 31, 2015	Dec. 31, 2015

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Preferred stock, shares authorized		100,000,000	100,000,000
Preferred stock, par value		$ 0.00001	$ 0.00001
Common stock, shares authorized		100,000,000	100,000,000
Common stock, par value		$ 0.00001	$ 0.00001
Options exercised		1,140
Exercise price		$ 0.77
Prepayment discount negotiated outstanding		$ 230,000
Prepayment discount negotiated outstanding received		100,000
October 20, 2015 [Member]
Class of Stock [Line Items]
Prepayment discount negotiated outstanding received		$ 130,000
Promissory Notes [Member]
Class of Stock [Line Items]
Promissory notes total	$ 504,000
Promissory notes maturity date		Jun. 30, 2017
Early payment of promissory note	$ 11,806
Common Stock [Member]
Class of Stock [Line Items]
Stock issued during period for services		10,000
Payment of dividends to preferred stockholders		236,855
Options exercised		1,140
Warrant [Member] | Exercise Price Range 1.02 [Member]
Class of Stock [Line Items]
Options exercised	200,000
Exercise price	$ 1.02
Warrant [Member] | Exercise Price Range 1.00 [Member]
Class of Stock [Line Items]
Options exercised	300,000
Exercise price	$ 1
Warrant [Member] | Exercise Price Range 1.02 [Member]
Class of Stock [Line Items]
Promissory notes interest rate	5.00%
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized		10,000,000	10,000,000
Preferred stock, par value		$ 0.00001	$ 0.00001
Cumulative dividends rate		9.50%
Original issue price		$ 1
Conversion price per share		$ 0.97
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized		500	500
Preferred stock, par value		$ 0.00001	$ 0.00001
Cumulative dividends rate		9.50%
Original issue price		$ 10,000
Additional original issue price		1
Conversion price per share		$ 0.75

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	9 Months Ended
	Sep. 30, 2015shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Warrants to purchase common stock, shares	7,610,303

Stock Options and Warrants - Sc

Stock Options and Warrants - Schedule of Stock Option Transactions (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares, Outstanding at Beginning of Year | shares	5,953,227
Shares, Granted | shares	291,000
Shares, Exercised | shares	(1,140)
Shares, Forfeited or Canceled | shares	(429,083)
Shares, Outstanding at End of Period | shares	5,814,004
Shares, Options Exercisable at Period-End | shares	5,750,379
Weighted-Average Fair Value of Options Granted During the Period	$ 0.16
Weighted-Average Exercise Price, Outstanding at Beginning of Year	1.03
Weighted-Average Exercise Price, Granted	0.77
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	0.97
Weighted-Average Exercise Price, Options Exercisable at Period-End	$ 0.98

Stock Options and Warrants - 29

Stock Options and Warrants - Schedule of Stock Options Outstanding and Exercisable (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Range of Exercise Prices Minimum	$ 0.10
Range of Exercise Prices Maximum	$ 1.75
Options Outstanding, Number Outstanding | shares	5,814,004
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years
Options Outstanding, Weighted-Average Exercise Price	$ 0.97
Options Exercisable, Number Exercisable | shares	5,750,379
Options Exercisable, Weighted-Average Exercise Price	$ 0.98

Stock Options And Warrants - 30

Stock Options And Warrants - Schedule of Black-Scholes Option-Pricing Model (Details)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected Life	6 years 3 months
Dividend Yield	0.00%
Expected Volatility	18.35%
Risk-Free Interest Rate	1.99%

Stock Options and Warrants - 31

Stock Options and Warrants - Schedule of Warrant Transactions (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2015shares
Outstanding at December 31, 2014	3,749,550
Granted	4,369,162
Exercised
Forfeited or Canceled	(508,409)
Warrants Redeemable at September 30, 2015	7,610,303

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)

Jan. 05, 2015

Dec. 09, 2014

Sep. 10, 2014

Sep. 08, 2014

Aug. 28, 2014

Jun. 20, 2013

Nov. 19, 2012

Jul. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Dec. 30, 2014

Oct. 14, 2014

Shares, granted

291,000

Mr. Joe Farnsworth [Member]

Debenture agreement amount

$ 10,000

$ 35,000

Debenture interest rate

9.50%

9.50%

Mr. Gillen [Member]

Debenture agreement amount

$ 100,000

$ 100,000

Debenture interest rate

9.50%

10.00%

Issuance of warrants to purchase common stock

25,000

25,000

Warrants exercise price

$ 1

$ 1

$ 0.77

Shares, granted

10,000

Debenture interest paid

$ 5,000

Debenture maturity date

Dec. 31, 2015

Mr. Alex Kuo [Member]

Debenture agreement amount

$ 30,000

Debenture interest rate

9.50%

Warrants exercise price

$ 0.77

Shares, granted

3,000

Debenture maturity date

Dec. 31, 2015

Mr. Kuo's wife [Member]

Debenture agreement amount

$ 100,000

Debenture interest rate

9.50%

Warrants exercise price

$ 0.77

Shares, granted

10,000

Debenture maturity date

Dec. 31, 2015

Mr. Gregory Omi [Member]

Debenture agreement amount

$ 200,000

Debenture interest rate

9.50%

Warrants exercise price

$ 0.77

Shares, granted

20,000

Debenture maturity date

Dec. 31, 2015

MEGAsys Management [Member] | Unsecured Loan Agreement [Member] | Mr. Cheung [Member]

Debenture agreement amount

$ 314,080

$ 18,120

Debenture interest rate

8.80%

Debenture maturity date

Dec. 31, 2015

MEGAsys Management [Member] | Unsecured Loan Agreement [Member] | Mr. Shiau [Member]

Debenture agreement amount

$ 36,240

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details Narrative) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Total common stock equivalents convertible into common stock	21,585,017	11,682,521

Earnings (Loss) Per Share - Sch

Earnings (Loss) Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net Loss	$ (953,706)	$ (1,201,375)	$ (2,673,439)	$ (4,195,707)
Weighted Average Shares	27,683,644	27,308,357	27,458,942	26,968,884
Basic and Diluted Loss Per Share	$ (0.03)	$ (0.04)	$ (0.10)	$ (0.16)