Iveda Solutions (IVDA) 10-Q 20 Jun 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Jun. 13, 2016
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	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		29,530,676
Trading Symbol	IVDA
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and Cash Equivalents	$ 184,917	$ 206,925
Restricted Cash	301,301	294,066
Accounts Receivable, Net (including $1,770 and $27,512 from Related Party, respectively)	631,634	996,566
Inventory, Net	209,297	176,910
Other Current Assets	347,950	316,210
Total Current Assets	1,675,099	1,990,677
PROPERTY AND EQUIPMENT, NET	166,224	189,094
Intangible Assets, Net	101,666	106,666
Other Assets	220,929	162,381
Total Other Assets	322,595	269,047
Total Assets	2,163,918	2,448,818
CURRENT LIABILITIES
Accounts and Other Payables	2,883,182	2,604,126
Due to Related Parties	430,000	714,820
Short Term Debt	255,190	53,025
Derivative Liability	49,957	$ 53,152
Current Portion of Long-Term Debt	45,846
Total Current Liabilities	3,664,175	$ 3,425,123
LONG-TERM DEBT	39,824
LONG-TERM DIVIDENDS PAYABLE	748,328	$ 653,242
STOCKHOLDERS’ EQUITY
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 28,161,500 and 27,906,739 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	282	279
Additional Paid-In Capital	30,413,214	30,325,402
Accumulated Comprehensive Loss	(38,874)	(41,970)
Accumulated Deficit	(32,663,071)	(31,913,298)
Total Stockholders’ Equity (Deficit)	(2,288,409)	(1,629,547)
Total Liabilities and Stockholders’ Equity	2,163,918	2,448,818
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) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounts Receivable, Related Party	$ 1,770	$ 27,512
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	28,161,500	27,906,739
Common stock, shares outstanding	28,161,500	27,906,739
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	3,963,077	4,003,592
Preferred stock, shares outstanding	3,963,077	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 outstanding	302.5	302.5

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
REVENUE
Equipment Sales	$ 385,199	$ 414,523
Service Revenue	24,483	98,339
Other Revenue	2,835	12,959
Total Revenue	412,517	525,821
COST OF REVENUE	330,410	358,695
GROSS PROFIT	82,107	167,126
OPERATING EXPENSES	648,947	1,015,940
LOSS FROM OPERATIONS	$ (566,840)	(848,814)
OTHER INCOME (EXPENSE)
Foreign Currency Transaction Gains		4,443
Gain on Derivatives	$ 3,195	$ 36,932
Gain (Loss) on Disposal of Assets	1,652
Interest Income	21	$ 6,083
Interest Expense	(20,872)	(38,031)
Total Other Income (Expense)	(16,004)	9,427
LOSS BEFORE INCOME TAXES	$ (582,844)	$ (839,387)
BENEFIT (PROVISION) FOR INCOME TAXES
NET LOSS	$ (582,844)	$ (839,387)
BASIC AND DILUTED LOSS PER SHARE	$ (0.02)	$ (0.03)
WEIGHTED AVERAGE SHARES	28,086,105	27,308,357

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Loss	$ (582,844)	$ (839,387)
Other Comprehensive Loss
Change in Equity Adjustment from Foreign Currency Translation, Net of Tax	3,096	1,531
Comprehensive Loss	$ (579,748)	$ (837,856)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (582,844)	$ (839,387)
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities
Depreciation and Amortization	7,731	57,125
(Gain) on Derivatives	(3,195)	(36,932)
Stock Option Compensation	$ 6,000	62,000
Bad Debt Expense		3,085
Inventory Valuation Allowance		1,000
Common Stock Issued for Interest	$ 3,000	7,327
(Increase) Decrease in Operating Assets and Liabilities
Accounts Receivable	378,429	(210,479)
Inventory	(29,064)	(79,604)
Other Current Assets	(24,002)	(34,018)
Other Assets	(53,386)	14,005
Increase (Decrease) in Accounts and Other Payables	247,057	(231,689)
Net Cash Used in Operating Activities	(50,274)	(1,287,567)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (Purchase) of Property and Equipment	20,442	(2,872)
Net Cash Provided by (Used in) Investing Activities	20,442	(2,872)
CASH FLOWS FROM FINANCING ACTIVITIES
Changes in Restricted Cash	(7,235)	105,255
Proceeds from (Payments on) Short-Term Notes Payable/Debt	203,037	$ 16,760
Proceeds from Exercise of Stock Options	6,969
Proceeds from (Payments to) Due to Related Parties	(284,820)	$ (145,000)
Proceeds from Long-Term Debt, Net of Payments	$ 85,670	20,812
Series B Preferred Stock Issued, Net of Cost of Capital		2,818,981
Net Cash Provided by Financing Activities	$ 3,621	2,816,808
EFFECT OF EXCHANGE RATE CHANGES ON CASH	4,203	1,313
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(22,008)	1,486,058
Cash and Cash Equivalents- Beginning of Period	206,925	87,900
CASH AND CASH EQUIVALENTS - END OF PERIOD	184,917	1,573,958
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid	8,204	37,023
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Warrants Issued for Interest Expense	3,000	$ 7,327
Dividends Converted to Common Stock	$ 71,843

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
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, 2015. The operating results and cash flows for the three-month period ended March 31, 2016 are not necessarily indicative of the results that will be achieved for the full fiscal year ending December 31, 2016 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, 2015 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, 2015 contained a going concern qualification. Since inception, we have generated an accumulated deficit from operations of approximately $32.6 million at March 31, 2016 and have used approximately $335,000 in cash to fund operations through the three months ended March 31, 2016. 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, our cloud-based video management platform, and began executing on our strategy to license its use as a VSaaS offering to partners, as of March 2014, such as telecommunications companies, ISPs, data centers, and cable companies in order to gain access to their existing subscriber bases. ● We introduced the ZEE® line of cloud, plug-and-play cameras in September 2013. The camera line includes two indoor cameras, one outdoor camera, and one pan/tilt P/T camera. We utilize contract manufacturers for our cloud cameras and other cloud-enabled devices. The Sentir-enabled cameras simplify service providers’ VSaaS offering to end users. ● We developed IvedaMobile® – a cloud-hosting service that turns any smartphone or tablet into a mobile, cloud video streaming device. ● We introduced IvedaHome for shipments beginning 2016, cloud-based home security and automation systems. ● We signed an exclusive reseller agreement in 4 th ● We are actively collaborating with certain telecommunications companies in other countries to resell our products and services in their respective countries. Our initial shipments of ZEE cameras were sent in June and August 2014 for delivery to Filcomserve as reseller to the Philippine Long Distance Company (“PLDT”) for distribution to its customers. ● 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 its direct project-based sales channel and all costs related to project-based sales as well as our real time monitoring services 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. In February 2014, Mr. Brilon was appointed as our President. Mr. Brilon has strong ties with the investment community and has extensive experience with domestic and foreign institutional investors, which may be instrumental in raising capital to fund our growth. Mr. Brilon has also been instrumental in restructuring the business model reducing the workforce and implementing relevant cost reductions in 2014 and 2015. 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 one customer represented approximately 80% of total revenue for the three months ended March 31, 2016, and two customers represented approximately 74% of the total U.S.-based segment accounts receivable at March 31, 2016. Taiwan-based segment revenue from one customer represented approximately 83% of total revenue for the three months ended March 31, 2016, and four customers represented approximately 78% of total Taiwan-based segment accounts receivable at March 31, 2016. 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 March 31, 2016. Future amortization of trademarks is as follows: 2016 $ 15,000 2017 20,000 2018 20,000 2019 20,000 Thereafter 26,666 Total $ 101,666 Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of March 31, 2016 and December 31, 2015. 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: March 31, 2016 Net Revenue Net Assets (Liabilities) United States $ 127,568 $ 408,937 Republic of China (Taiwan) MEGAsys $ 284,949 $ 1,754,981 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 months ended March 31, 2016 for each of our reporting segments are provided below. Three Months Ended Three Months Ended Condensed March 31, 2016 March 31, 2016 Consolidated Iveda Solutions, Inc. MEGAsys Total Revenue $ 127,568 $ 284,949 $ 412,517 Cost of Revenue 107,320 223,090 330,410 Gross Profit 20,248 61,859 82,107 Depreciation and Amortization 26,227 - 26,227 General and Administrative 525,509 97,211 622,720 Gain (Loss) from Operations (531,488 ) (35,352 ) (566,840 ) Foreign Currency Gain - - - Gain on Derivatives 3,195 - 3,195 Gain on Disposal of Asses, Net 1,652 - 1,652 Interest Income - 21 21 Interest Expense (19,544 ) (1,328 ) (20,872 ) Gain (Loss) Before Income Taxes (546,185 ) (36,659 ) (582,844 ) Benefit (Provision) for Income Taxes - - - Net Income (Loss) $ (546,185 ) $ (36,659 ) $ (582,844 ) 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 March 31, 2016 2015 Revenue United States $ 127,568 $ 99,321 Republic of China (Taiwan) 284,949 426,500 $ 412,517 $ 525,821 Three Months Ended March 31, 2016 2015 Operating Earnings (Loss) United States $ (531,488 ) $ (895,183 ) Republic of China (Taiwan) (35,352 ) 46,369 $ (566,840 ) $ (848,814 ) Three Months Ended March 31, 2016 2015 Property and Equipment, Net United States $ 163,579 $ 430,691 Republic of China (Taiwan) 2,645 14,544 $ 166,224 $ 445,235 Three Months Ended March 31, 2016 2015 Additions (Disposals) to Long-Lived Assets United States $ 21,227 $ (2,484 ) Republic of China (Taiwan) (785 ) (388 ) $ 20,442 $ (2,872 ) Three Months Ended March 31, 2016 2015 Inventory, Net United States $ 76,630 $ 267,528 Republic of China (Taiwan) 132,667 201,622 $ 209,297 $ 469,150 Three Months Ended March 31, 2016 2015 Total Assets United States $ 408,937 $ 2,345,092 Republic of China (Taiwan) 1,754,981 2,610,209 $ 2,163,918 $ 4,955,301 Reclassification Certain amounts in 2015 may have been reclassified to conform to the 2016 presentation. New Accounting Standards There were no new standards recently issued which would have an impact on our operations or disclosures.

Short-Term and Long-Term Debt

Short-Term and Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Short-Term and Long-Term Debt	NOTE 2 SHORT-TERM AND LONG-TERM DEBT The short term debt balances were as follows: March 31, 2016 December 31, 2015 Loan from Hua Nan Bank at 2.88% interest rate per annum. Due at February 2016 - August 2016. $ 155,190 $ - Loan from shareholder at 9.5% interest rate per annum. Originated February 2016 with initial term to March 31, 2016. Currently due upon demand. $ 100,000 $ - Loan from Shanghai Bank at 3.24% interest rate per annum. Due at July 2015 - March 2016. $ - $ 53,025 Balance at end of period $ 255,190 $ 53,025 The long term debt is a loan from Fubon Bank originated February 2016 with maturity January 31, 2018. The loan has an annual interest rate of 4.5% and an outstanding balance of $85,670 with $45,846 as current portion of long term debt.

Equity

Equity	3 Months Ended
	Mar. 31, 2016
Equity [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 three months ended March 31, 2016, we issued 138,305 shares of common stock in payment of dividends to Series B preferred stockholders. During the three months ended March 31, 2016, we issued 69,690 shares of common stock for exercised options to purchase common stock. During the three months ended March 31, 2016, we issued 41,766 shares of common stock for conversion of Series A preferred shares. During the three months ended March 31, 2016, we issued 5,000 shares common stock for interest payment to a short-term loan. 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	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 were as follows: Three months ended March 31, 2016 Shares Weighted- Average Exercise Price Outstanding at Beginning of Year 6,037,754 $ 0.96 Granted 30,000 0.65 Exercised (69,690 ) 0.10 Forfeited or Canceled (21,500 ) 1.14 Outstanding at End of Period 5,976,564 0.97 Options Exercisable at End of Period 5,931,939 $ 0.97 Weighted-Average Fair Value of Options Granted During the Period $ 0.14 Information with respect to stock options outstanding and exercisable as of March 31, 2016 is as follows: Options Outstanding Options Exercisable Range of Exericse Prices Number Outstanding at March 31, 2016 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number Exercisable at March 31, 2016 Weighted- Average Exercise Price $ 0.10 - $1.75 5,976,564 7 $ 0.97 5,931,939 $ 0.97 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: 2016 Expected Life 6.25 yrs Dividend Yield 0 % Expected Volatility 18.07 % Risk-Free Interest Rate 2.18 % 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 March 31, 2016, warrants to purchase 7,352,302 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 three months ended March 31, 2016 were as follows: Outstanding at December 31, 2015 7,417,302 Granted - Exercised - Forfeited or Canceled (65,000 ) Warrants Redeemable at March 31, 2016 7,352,302

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Parties	NOTE 5 RELATED PARTY TRANSACTIONS March 31, 2016 During June 2015 MEGAsys entered into an unsecured loan agreement with two of its directors, Mr. Cheung and Mr. Shiau for $18,180 and $36,360, respectively. During July 2015 MEGAsys entered into additional unsecured loans from Mr. Cheung for $315,120. All of the loans are at maximum of 8.8% interest per annum and matured December 30, 2015. We paid the $284,820 principal balance and accrued interest on January 31, 2016. - On December 30, 2014, we entered into a debenture agreement with Mr. Farnsworth, a member of our Board of Directors, for $10,000, at 9.5% interest per annum with interest and principal payable on January 31, 2015. 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 Mr. Gillen, a member of our Board of Directors, for $100,000, at 9.5% interest per annum with interest and principal payable on January 5, 2015. Mr. Gillen also received a warrant to purchase 25,000 shares of our common stock at an exercise price of $1.00 per share. As consideration for agreeing to extend the maturity date of the debenture, we granted Mr. Gillen options to purchase 10,000 shares of our common stock at an exercise price of $0.77 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. Joe Farnsworth, a member of our Board of Directors, for $35,000, at 9.5% interest per annum with interest and principal payable on February 5, 2015. 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 Mr. 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. 30,000 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 pruchase 10,000 shares of our common stock with an exercise price of $0.77 per share. 100,000 On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, a member of our 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 Decemer 31, 2016. As consideration for the extension of the debenture, we granted Mr. Omi options to purchase 20,000 shares of our common stock with an exercised price of $0.77 per share. This debenture was extended to December 31, 2016 and as consideration for agreeing to exend the maturity date of the debenture, we granted Mr. Omi options to purchase 20,000 shares of common stock at an exercised price of $0.65 per share. 200,000 On November 19, 2012, we entered into a convertible debenture agreement with Mr. Robert Gillen, a member of our Board of Directors, for $100,000 (the “Gillen I Debenture”), 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. Gillen I 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 common stock at an exercised price of $0.77 per share This debenture was extended to December 31, 2016 and as consideration for agreeing to exend the maturity date of the debenture, we granted Mr. Gillen options to purchase 10,000 shares of common stock at an exercised price of $0.65 per share. $ 100,000 Total Due to Related Parties $ 430,000 Less Current Portion (430,000 ) Less: Debt Discount - Total Long-Term $ - Related Party Transaction – During 2016 MEGAsys conducted business with a Taiwan based system integrator, Iwei Da System Ltd. and has one of MEGAsys directors as a common director also less than 2% shareholder of Iveda. The sales to the system integrator for the three-month period ended March 31, 2016 was $17,644, at March 31, 2016 there was accounts receivable balance of $1,770.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2016
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, 2015 and 2014 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 March 31, 2016 and 2015. Total common stock equivalents that could be convertible into common stock were 21,455,311 and 13,706,369 for March 31, 2016 and 2015, respectively. Three Months Three Months Ending Ending March 31, 2016 March 31, 2015 Basic EPS Net Loss $ (582,844 ) $ (839,387 ) Weighted Average Shares 28,086,105 27,308,357 Basic Loss Per Share $ (0.02 ) $ (0.03 )

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	NOTE 7 SUBSEQUENT EVENTS On April 21, 2016, certain Series B Preferred Shareholders exercised and exchanged $380,000 of shares of our Common Stock at a price of $0.35 per share of their Tranche A Warrants. The initial exercise price of the Tranche A Warrants was $1.00 and per the Exchange Agreement the Company offered to reduce the initial exercise price to $0.35 for the immediate exercise of the Tranche A Warrant and will replace those exercised with a replacement Tranche A Warrant with the same terms and conditions as the original warrant including the exercise price of $1.00 but with a new 18 month term from the date of the exchange. The initial exercise price of the Tranche B Warrants was $1.10 and the Warrant Exchange Agreement adjusts these Tranche B Warrants to $0.35 exercise price. The exercise price of the Tranche B Warrants is subject to customary adjustments for issuances of shares of common stock as a dividend or distribution on shares of the common stock, or mergers or reorganizations, as well as “full-ratchet” anti- dilution adjustments for future issuances of other Company securities (subject to certain standard carve-outs). As a result of this event, the exercise price of warrants issued to Series A Preferred Shareholders will adjust from $.75 to $.35 and conversion price of Series A Preferred shares to shares of common stock will adjust from $.97 to $.86 per anti-dilution rights of the agreement. We have 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 Sum14

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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, 2015 contained a going concern qualification. Since inception, we have generated an accumulated deficit from operations of approximately $32.6 million at March 31, 2016 and have used approximately $335,000 in cash to fund operations through the three months ended March 31, 2016. 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, our cloud-based video management platform, and began executing on our strategy to license its use as a VSaaS offering to partners, as of March 2014, such as telecommunications companies, ISPs, data centers, and cable companies in order to gain access to their existing subscriber bases. ● We introduced the ZEE® line of cloud, plug-and-play cameras in September 2013. The camera line includes two indoor cameras, one outdoor camera, and one pan/tilt P/T camera. We utilize contract manufacturers for our cloud cameras and other cloud-enabled devices. The Sentir-enabled cameras simplify service providers’ VSaaS offering to end users. ● We developed IvedaMobile® – a cloud-hosting service that turns any smartphone or tablet into a mobile, cloud video streaming device. ● We introduced IvedaHome for shipments beginning 2016, cloud-based home security and automation systems. ● We signed an exclusive reseller agreement in 4 th ● We are actively collaborating with certain telecommunications companies in other countries to resell our products and services in their respective countries. Our initial shipments of ZEE cameras were sent in June and August 2014 for delivery to Filcomserve as reseller to the Philippine Long Distance Company (“PLDT”) for distribution to its customers. ● 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 its direct project-based sales channel and all costs related to project-based sales as well as our real time monitoring services 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. In February 2014, Mr. Brilon was appointed as our President. Mr. Brilon has strong ties with the investment community and has extensive experience with domestic and foreign institutional investors, which may be instrumental in raising capital to fund our growth. Mr. Brilon has also been instrumental in restructuring the business model reducing the workforce and implementing relevant cost reductions in 2014 and 2015.
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 one customer represented approximately 80% of total revenue for the three months ended March 31, 2016, and two customers represented approximately 74% of the total U.S.-based segment accounts receivable at March 31, 2016. Taiwan-based segment revenue from one customer represented approximately 83% of total revenue for the three months ended March 31, 2016, and four customers represented approximately 78% of total Taiwan-based segment accounts receivable at March 31, 2016.
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 March 31, 2016. Future amortization of trademarks is as follows: 2016 $ 15,000 2017 20,000 2018 20,000 2019 20,000 Thereafter 26,666 Total $ 101,666
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 March 31, 2016 and December 31, 2015. 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: March 31, 2016 Net Revenue Net Assets (Liabilities) United States $ 127,568 $ 408,937 Republic of China (Taiwan) MEGAsys $ 284,949 $ 1,754,981 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 months ended March 31, 2016 for each of our reporting segments are provided below. Three Months Ended Three Months Ended Condensed March 31, 2016 March 31, 2016 Consolidated Iveda Solutions, Inc. MEGAsys Total Revenue $ 127,568 $ 284,949 $ 412,517 Cost of Revenue 107,320 223,090 330,410 Gross Profit 20,248 61,859 82,107 Depreciation and Amortization 26,227 - 26,227 General and Administrative 525,509 97,211 622,720 Gain (Loss) from Operations (531,488 ) (35,352 ) (566,840 ) Foreign Currency Gain - - - Gain on Derivatives 3,195 - 3,195 Gain on Disposal of Asses, Net 1,652 - 1,652 Interest Income - 21 21 Interest Expense (19,544 ) (1,328 ) (20,872 ) Gain (Loss) Before Income Taxes (546,185 ) (36,659 ) (582,844 ) Benefit (Provision) for Income Taxes - - - Net Income (Loss) $ (546,185 ) $ (36,659 ) $ (582,844 ) 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 March 31, 2016 2015 Revenue United States $ 127,568 $ 99,321 Republic of China (Taiwan) 284,949 426,500 $ 412,517 $ 525,821 Three Months Ended March 31, 2016 2015 Operating Earnings (Loss) United States $ (531,488 ) $ (895,183 ) Republic of China (Taiwan) (35,352 ) 46,369 $ (566,840 ) $ (848,814 ) Three Months Ended March 31, 2016 2015 Property and Equipment, Net United States $ 163,579 $ 430,691 Republic of China (Taiwan) 2,645 14,544 $ 166,224 $ 445,235 Three Months Ended March 31, 2016 2015 Additions (Disposals) to Long-Lived Assets United States $ 21,227 $ (2,484 ) Republic of China (Taiwan) (785 ) (388 ) $ 20,442 $ (2,872 ) Three Months Ended March 31, 2016 2015 Inventory, Net United States $ 76,630 $ 267,528 Republic of China (Taiwan) 132,667 201,622 $ 209,297 $ 469,150 Three Months Ended March 31, 2016 2015 Total Assets United States $ 408,937 $ 2,345,092 Republic of China (Taiwan) 1,754,981 2,610,209 $ 2,163,918 $ 4,955,301
Reclassification	Reclassification Certain amounts in 2015 may have been reclassified to conform to the 2016 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)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Future Amortization of Trademarks	Future amortization of trademarks is as follows: 2016 $ 15,000 2017 20,000 2018 20,000 2019 20,000 Thereafter 26,666 Total $ 101,666
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: March 31, 2016 Net Revenue Net Assets (Liabilities) United States $ 127,568 $ 408,937 Republic of China (Taiwan) MEGAsys $ 284,949 $ 1,754,981
Schedule of Reporting Segments	Statements of operations for the three months ended March 31, 2016 for each of our reporting segments are provided below. Three Months Ended Three Months Ended Condensed March 31, 2016 March 31, 2016 Consolidated Iveda Solutions, Inc. MEGAsys Total Revenue $ 127,568 $ 284,949 $ 412,517 Cost of Revenue 107,320 223,090 330,410 Gross Profit 20,248 61,859 82,107 Depreciation and Amortization 26,227 - 26,227 General and Administrative 525,509 97,211 622,720 Gain (Loss) from Operations (531,488 ) (35,352 ) (566,840 ) Foreign Currency Gain - - - Gain on Derivatives 3,195 - 3,195 Gain on Disposal of Asses, Net 1,652 - 1,652 Interest Income - 21 21 Interest Expense (19,544 ) (1,328 ) (20,872 ) Gain (Loss) Before Income Taxes (546,185 ) (36,659 ) (582,844 ) Benefit (Provision) for Income Taxes - - - Net Income (Loss) $ (546,185 ) $ (36,659 ) $ (582,844 )
Schedule of Revenues, Additions to Long-Lived assets, Inventories and Property and Equipment for Operating Segments	Inventories and property and equipment for operating segments are regularly reviewed by management and are therefore provided below. Three Months Ended March 31, 2016 2015 Revenue United States $ 127,568 $ 99,321 Republic of China (Taiwan) 284,949 426,500 $ 412,517 $ 525,821 Three Months Ended March 31, 2016 2015 Operating Earnings (Loss) United States $ (531,488 ) $ (895,183 ) Republic of China (Taiwan) (35,352 ) 46,369 $ (566,840 ) $ (848,814 ) Three Months Ended March 31, 2016 2015 Property and Equipment, Net United States $ 163,579 $ 430,691 Republic of China (Taiwan) 2,645 14,544 $ 166,224 $ 445,235 Three Months Ended March 31, 2016 2015 Additions (Disposals) to Long-Lived Assets United States $ 21,227 $ (2,484 ) Republic of China (Taiwan) (785 ) (388 ) $ 20,442 $ (2,872 ) Three Months Ended March 31, 2016 2015 Inventory, Net United States $ 76,630 $ 267,528 Republic of China (Taiwan) 132,667 201,622 $ 209,297 $ 469,150 Three Months Ended March 31, 2016 2015 Total Assets United States $ 408,937 $ 2,345,092 Republic of China (Taiwan) 1,754,981 2,610,209 $ 2,163,918 $ 4,955,301

Short-Term and Long-Term Debt (

Short-Term and Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	The short term debt balances were as follows: March 31, 2016 December 31, 2015 Loan from Hua Nan Bank at 2.88% interest rate per annum. Due at February 2016 - August 2016. $ 155,190 $ - Loan from shareholder at 9.5% interest rate per annum. Originated February 2016 with initial term to March 31, 2016. Currently due upon demand. $ 100,000 $ - Loan from Shanghai Bank at 3.24% interest rate per annum. Due at July 2015 - March 2016. $ - $ 53,025 Balance at end of period $ 255,190 $ 53,025

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Stock Option Transactions	Stock option transactions during the three months ended March 31, 2016 were as follows: Three months ended March 31, 2016 Shares Weighted- Average Exercise Price Outstanding at Beginning of Year 6,037,754 $ 0.96 Granted 30,000 0.65 Exercised (69,690 ) 0.10 Forfeited or Canceled (21,500 ) 1.14 Outstanding at End of Period 5,976,564 0.97 Options Exercisable at End of Period 5,931,939 $ 0.97 Weighted-Average Fair Value of Options Granted During the Period $ 0.14
Schedule of Stock Options Outstanding and Exercisable	Information with respect to stock options outstanding and exercisable as of March 31, 2016 is as follows: Options Outstanding Options Exercisable Range of Exericse Prices Number Outstanding at March 31, 2016 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number Exercisable at March 31, 2016 Weighted- Average Exercise Price $ 0.10 - $1.75 5,976,564 7 $ 0.97 5,931,939 $ 0.97
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: 2016 Expected Life 6.25 yrs Dividend Yield 0 % Expected Volatility 18.07 % Risk-Free Interest Rate 2.18 %
Warrant [Member]
Schedule of Warrant Transactions	Warrant transactions during the three months ended March 31, 2016 were as follows: Outstanding at December 31, 2015 7,417,302 Granted - Exercised - Forfeited or Canceled (65,000 ) Warrants Redeemable at March 31, 2016 7,352,302

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	March 31, 2016 During June 2015 MEGAsys entered into an unsecured loan agreement with two of its directors, Mr. Cheung and Mr. Shiau for $18,180 and $36,360, respectively. During July 2015 MEGAsys entered into additional unsecured loans from Mr. Cheung for $315,120. All of the loans are at maximum of 8.8% interest per annum and matured December 30, 2015. We paid the $284,820 principal balance and accrued interest on January 31, 2016. - On December 30, 2014, we entered into a debenture agreement with Mr. Farnsworth, a member of our Board of Directors, for $10,000, at 9.5% interest per annum with interest and principal payable on January 31, 2015. 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 Mr. Gillen, a member of our Board of Directors, for $100,000, at 9.5% interest per annum with interest and principal payable on January 5, 2015. Mr. Gillen also received a warrant to purchase 25,000 shares of our common stock at an exercise price of $1.00 per share. As consideration for agreeing to extend the maturity date of the debenture, we granted Mr. Gillen options to purchase 10,000 shares of our common stock at an exercise price of $0.77 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. Joe Farnsworth, a member of our Board of Directors, for $35,000, at 9.5% interest per annum with interest and principal payable on February 5, 2015. 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 Mr. 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. 30,000 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 pruchase 10,000 shares of our common stock with an exercise price of $0.77 per share. 100,000 On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, a member of our 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 Decemer 31, 2016. As consideration for the extension of the debenture, we granted Mr. Omi options to purchase 20,000 shares of our common stock with an exercised price of $0.77 per share. This debenture was extended to December 31, 2016 and as consideration for agreeing to exend the maturity date of the debenture, we granted Mr. Omi options to purchase 20,000 shares of common stock at an exercised price of $0.65 per share. 200,000 On November 19, 2012, we entered into a convertible debenture agreement with Mr. Robert Gillen, a member of our Board of Directors, for $100,000 (the “Gillen I Debenture”), 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. Gillen I 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 common stock at an exercised price of $0.77 per share This debenture was extended to December 31, 2016 and as consideration for agreeing to exend the maturity date of the debenture, we granted Mr. Gillen options to purchase 10,000 shares of common stock at an exercised price of $0.65 per share. $ 100,000 Total Due to Related Parties $ 430,000 Less Current Portion (430,000 ) Less: Debt Discount - Total Long-Term $ -

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and Diluted	Three Months Three Months Ending Ending March 31, 2016 March 31, 2015 Basic EPS Net Loss $ (582,844 ) $ (839,387 ) Weighted Average Shares 28,086,105 27,308,357 Basic Loss Per Share $ (0.02 ) $ (0.03 )

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accumulated deficit	$ 32,663,071	$ 31,913,298
Cash to operations	335,000
CDIC insurance limit	$ 3,000,000
US Based Segment [Member] | Revenue [Member] | Customer One [Member]
Percentage of concentration risk	80.00%
US Based Segment [Member] | Accounts Receivable [Member] | Customer Two [Member]
Percentage of concentration risk	74.00%
Taiwan Based Segment [Member] | Revenue [Member] | Customer One [Member]
Percentage of concentration risk	83.00%
Taiwan Based Segment [Member] | Accounts Receivable [Member] | Customer Four [Member]
Percentage of concentration risk	78.00%

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Future Amortization of Trademarks (Details) - Trademarks [Member]	Mar. 31, 2016USD ($)
2,016	$ 15,000
2,017	20,000
2,018	20,000
2,019	20,000
Thereafter	26,666
Total	$ 101,666

Basis of Presentation and Sum22

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
	Mar. 31, 2016	Mar. 31, 2015
Net Revenue	$ 412,517	$ 525,821
United States [Member]
Net Revenue	127,568	99,321
Net Assets (Liabilities)	408,937
Republic of China (Taiwan) [Member]
Net Revenue	284,949	$ 426,500
Net Assets (Liabilities)	$ 1,754,981

Basis of Presentation and Sum23

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Reporting Segments (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014
Accounting Policies [Line Items]
Revenue	$ 412,517	$ 525,821
Cost of Revenue	330,410	358,695
Gross Profit	82,107	167,126
Depreciation and Amortization	26,227
General and Administrative	622,720
Gain (Loss) from Operations	$ (566,840)	(848,814)
Foreign Currency Gain		4,443
Gain on Derivatives	$ 3,195	$ 36,932
Gain on Disposal of Asses, Net	1,652
Interest Income	21
Interest Expense	(20,872)
Gain (Loss) Before Income Taxes	$ (582,844)	$ (839,387)
Benefit (Provision) for Income Taxes
Net Income (Loss)	$ (582,844)	$ (839,387)	$ (839,387)
Iveda [Member]
Accounting Policies [Line Items]
Revenue	127,568
Cost of Revenue	107,320
Gross Profit	20,248
Depreciation and Amortization	26,227
General and Administrative	525,509
Gain (Loss) from Operations	$ (531,488)
Foreign Currency Gain
Gain on Derivatives	$ 3,195
Gain on Disposal of Asses, Net	$ 1,652
Interest Income
Interest Expense	$ (19,544)
Gain (Loss) Before Income Taxes	$ (546,185)
Benefit (Provision) for Income Taxes
Net Income (Loss)	$ (546,185)
Megasys [Member]
Accounting Policies [Line Items]
Revenue	284,949
Cost of Revenue	223,090
Gross Profit	$ 61,859
Depreciation and Amortization
General and Administrative	$ 97,211
Gain (Loss) from Operations	$ (35,352)
Foreign Currency Gain
Gain on Derivatives
Gain on Disposal of Asses, Net
Interest Income	$ 21
Interest Expense	(1,328)
Gain (Loss) Before Income Taxes	$ (36,659)
Benefit (Provision) for Income Taxes
Net Income (Loss)	$ (36,659)

Basis of Presentation and Sum24

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
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenues	$ 412,517	$ 525,821
Operating Earnings (Loss)	(566,840)	(848,814)
Property and Equipment, Net	166,224	445,235	$ 189,094
Additions (Disposals) to Long-Lived Assets	20,442	(2,872)
Inventory, Net	209,297	469,150
Total Assets	2,163,918	4,955,301	$ 2,448,818
United States [Member]
Revenues	127,568	99,321
Operating Earnings (Loss)	(531,488)	(895,183)
Property and Equipment, Net	163,579	430,691
Additions (Disposals) to Long-Lived Assets	21,227	(2,484)
Inventory, Net	76,630	267,528
Total Assets	408,937	2,345,092
Republic of China (Taiwan) [Member]
Revenues	284,949	426,500
Operating Earnings (Loss)	(35,352)	46,369
Property and Equipment, Net	2,645	14,544
Additions (Disposals) to Long-Lived Assets	(785)	(388)
Inventory, Net	132,667	201,622
Total Assets	$ 1,754,981	$ 2,610,209

Short-Term and Long-Term Debt25

Short-Term and Long-Term Debt (Details Narrative)	3 Months Ended
	Mar. 31, 2016USD ($)
Debt Disclosure [Abstract]
Debt maturity date	Jan. 31, 2018
Debt annaul interest rate	4.50%
Loans payable current	$ 85,670
Long term loans	$ 45,846

Short-Term and Long-Term Debt -

Short-Term and Long-Term Debt - Schedule of Short-Term Debt (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Balance at end of period	$ 255,190	$ 53,025
Hua Nan Bank [Member]
Balance at end of period	155,190
Shareholder [Member]
Balance at end of period	$ 100,000
Shanghai Bank [Member]
Balance at end of period		$ 53,025

Short-Term and Long-Term Debt27

Short-Term and Long-Term Debt - Schedule of Short-Term Debt (Details) (Parenthetical)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Short term debt interest rate per annum	5.00%
Hua Nan Bank [Member]
Short term debt interest rate per annum	2.88%	2.88%
Short term debt maturity date range start	Feb. 29, 2016	Feb. 29, 2016
Short term debt maturity date range end	Aug. 31, 2016	Aug. 31, 2016
Shareholder [Member]
Short term debt interest rate per annum	9.50%	9.50%
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

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2016	Dec. 31, 2015	Oct. 20, 2015	Mar. 31, 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
Original issue, price per share			$ 1
Common stock, shares authorized			100,000,000	100,000,000
Common stock, par value			$ 0.00001	$ 0.00001
Options exercised			69,690
Common stock interest payment shares			5,000
Exercise price			$ 0.65
Debt instrument, interest rate			5.00%
Promissory notes maturity date			Jan. 31, 2018
Prepayment discount negotiated outstanding	$ 230,000
Prepayment discount negotiated outstanding received	$ 100,000				$ 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
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]
Debt instrument, 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
Preferred stock, shares designated			3,963,077	4,003,592
Cumulative dividends rate			9.50%
Original issue, price per share			$ 0.97
Original issue price divided of initial conversion price, per share			$ 0.97
Shares issued upon conversion			41,766
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 per share			$ 10,000
Preferred stocl dividends rate			100.00%
Original issue price divided of initial conversion price, per share			$ 0.75
Common stock in payment of dividends			138,305
Common Stock [Member]
Class of Stock [Line Items]
Options exercised			69,690

Stock Options and Warrants (Det

Stock Options and Warrants (Details Narrative)	3 Months Ended
	Mar. 31, 2016shares
Warrants to purchase of common stock shares	7,352,302
Warrant [Member]
Warrants vesting period	4 years
Warrant [Member] | Minimum [Member]
Warrrants exercise term	2 years
Warrant [Member] | Maximum [Member]
Warrrants exercise term	10 years

Stock Options and Warrants - Sc

Stock Options and Warrants - Schedule of Stock Option Transactions (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares, Outstanding at Beginning of Year | shares	6,037,754
Shares, Granted | shares	30,000
Shares, Exercised | shares	(69,690)
Shares, Forfeited or Canceled | shares	(21,500)
Shares, Outstanding at End of Period | shares	5,976,564
Shares, Options Exercisable at End of period | shares	5,931,939
Weighted-Average Fair Value of Options Granted During the Period	$ 0.14
Weighted-Average Exercise Price, Outstanding at Beginning of Year	0.96
Weighted-Average Exercise Price, Granted	0.65
Weighted-Average Exercise Price, Exercised	0.10
Weighted-Average Exercise Price, Forfeited or Canceled	1.14
Weighted-Average Exercise Price, Outstanding at End of Period	0.97
Weighted-Average Exercise Price, Options Exercisable at End of Period	$ 0.97

Stock Options and Warrants - 31

Stock Options and Warrants - Schedule of Stock Options Outstanding and Exercisable (Details)	3 Months Ended
	Mar. 31, 2016$ / 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	5,976,564
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years
Options Outstanding, Weighted-Average Exercise Price	$ 0.97
Options Exercisable, Number Exercisable | shares	5,931,939
Options Exercisable, Weighted-Average Exercise Price	$ 0.97

Stock Options and Warrants - 32

Stock Options and Warrants - Schedule of Black-Scholes Option-Pricing Model (Details)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected Life	6 years 3 months
Dividend Yield	0.00%
Expected Volatility	18.07%
Risk-Free Interest Rate	2.18%

Stock Options and Warrants - St

Stock Options and Warrants - Stock Options and Warrants (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2016shares
Outstanding at December 31, 2015	7,417,302
Granted
Exercised
Forfeited or Canceled	(65,000)
Warrants Redeemable at March 31, 2016	7,352,302

Related Party Transactionss (De

Related Party Transactionss (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Sales revenue	$ 385,199	$ 414,523
Accounts receivable	1,770
System Integrator [Member]
Sales revenue	$ 17,644

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Total Due to Related Parties	$ 430,000
Less Current Portion	$ (430,000)	$ (714,820)
Less: Debt Discount
Total Long-Term	$ 39,824
Mr. Cheung and Mr. Shiau [Member]
Total Due to Related Parties
Mr. Farnsworth [Member]
Total Due to Related Parties
Mr.Gillen [Member]
Total Due to Related Parties
Mr. Joe Farnsworth [Member]
Total Due to Related Parties
Mr. Alex Kuo [Member]
Total Due to Related Parties	$ 30,000
Li-Min Hsu [Member]
Total Due to Related Parties	100,000
Mr. Gregory Omi [Member]
Total Due to Related Parties	200,000
Mr. Robert Gillen [Member]
Total Due to Related Parties	$ 100,000

Related Party Transactions - 36

Related Party Transactions - Schedule of Related Party Transactions (Details) (Parenthetical) - USD ($)

Dec. 09, 2014

Sep. 10, 2014

Sep. 08, 2014

Aug. 28, 2014

Nov. 19, 2012

Jan. 31, 2016

Mar. 31, 2016

Jul. 31, 2015

Jun. 30, 2015

Dec. 30, 2014

Oct. 14, 2014

Jun. 20, 2013

Debt instrument, interest rate

5.00%

Debt maturity date

Jan. 31, 2018

Shares, granted

30,000

Mr. Cheung [Member]

Debt agreement amount

$ 18,180

Additional unsecured loans

$ 315,120

Debt instrument, interest rate

8.80%

Payment of debt

$ 284,820

Debt interest paid

$ 284,820

Debt maturity date

Dec. 30, 2015

Mr. Shiau [Member]

Debt agreement amount

$ 36,360

Mr. Farnsworth [Member]

Additional unsecured loans

$ 10,000

Debt instrument, interest rate

9.50%

Mr.Gillen [Member]

Additional unsecured loans

$ 100,000

Debt instrument, interest rate

9.50%

Issuance of warrants to purchase common stock

25,000

10,000

Warrants exercise price

$ 1

$ 0.65

Shares, granted

10,000

Shares granted, price per share

$ 0.77

Mr. Joe Farnsworth [Member]

Additional unsecured loans

$ 35,000

Debt instrument, interest rate

9.50%

Mr. Alex Kuo [Member]

Additional unsecured loans

$ 30,000

Debt instrument, interest rate

9.50%

Debt maturity date

Dec. 31, 2015

Issuance of warrants to purchase common stock

3,000

Warrants exercise price

$ 0.77

Li-Min Hsu [Member]

Additional unsecured loans

$ 100,000

Debt instrument, interest rate

9.50%

Debt maturity date

Dec. 31, 2015

Issuance of warrants to purchase common stock

10,000

Warrants exercise price

$ 0.77

Mr. Gregory Omi [Member]

Additional unsecured loans

$ 200,000

Debt instrument, interest rate

9.50%

Debt maturity date

Dec. 31, 2016

Issuance of warrants to purchase common stock

20,000

Warrants exercise price

$ 0.77

Mr.Omi [Member]

Issuance of warrants to purchase common stock

20,000

Warrants exercise price

$ 0.65

Mr. Robert Gillen [Member]

Additional unsecured loans

$ 100,000

$ 5,000

Debt instrument, interest rate

10.00%

Debt maturity date

Dec. 31, 2016

Issuance of warrants to purchase common stock

10,000

Warrants exercise price

$ 0.77

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Total common stock equivalents convertible into common stock	21,455,311	13,706,369

Earnings (Loss) Per Share - Sch

Earnings (Loss) Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net Loss	$ (582,844)	$ (839,387)	$ (839,387)
Weighted Average Shares	28,086,105	27,308,357	27,308,357
Basic Loss Per Share	$ (0.02)	$ (0.03)	$ (0.03)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	Apr. 21, 2016USD ($)$ / shares
Maximum [Member] | Series A Preferred Stock [Member]
Warrants exercise price per share	$ 0.97
Minimum [Member] | Series A Preferred Stock [Member]
Warrants exercise price per share	0.86
Tranche A Warrants [Member]
Warrants intial exrcise price of share	$ 1
Warrants term	18 months
Tranche A Warrants [Member] | Exchange Agreement [Member]
Warrants exercise price per share	$ 0.35
Tranche B Warrants [Member]
Warrants intial exrcise price of share	1.10
Tranche B Warrants [Member] | Warrant Exchange Agreement [Member]
Warrants exercise price per share	0.35
Series B Preferred Shareholders [Member] | Maximum [Member]
Warrants exercise price per share	0.75
Series B Preferred Shareholders [Member] | Minimum [Member]
Warrants exercise price per share	$ 0.35
Series B Preferred Shareholders [Member] | Tranche A Warrants [Member]
Preferred stock exercised for exchanged of shares of common stock amount | $	$ 380,000
Warrants exercise price per share	$ 0.35
Warrants intial exrcise price of share	$ 1