Cover
Cover | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | IVEDA SOLUTIONS, INC. |
Entity Central Index Key | 0001397183 |
Entity Tax Identification Number | 20-2222203 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | 1744 S. Val Vista Drive |
Entity Address, Address Line Two | Ste. 213 |
Entity Address, City or Town | Mesa |
Entity Address, State or Province | AZ |
Entity Address, Postal Zip Code | 85204 |
City Area Code | (480) |
Local Phone Number | 307-8700 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | |||
Cash and Cash Equivalents | $ 1,231,434 | $ 249,521 | $ 256,970 |
Restricted Cash | 224,354 | 165,145 | 172,530 |
Accounts Receivable, Net | 76,063 | 226,614 | 895,769 |
Inventory, Net | 458,636 | 221,868 | 132,747 |
Other Current Assets | 450,187 | 122,101 | 211,923 |
Total Current Assets | 2,440,674 | 985,249 | 1,669,939 |
PROPERTY AND EQUIPMENT, NET | 28,897 | 22,027 | 5,807 |
OTHER ASSETS | |||
Intangible Assets, Net | 6,666 | 26,667 | |
Other Assets | 172,777 | 231,624 | 201,887 |
Total Other Assets | 172,777 | 238,290 | 228,554 |
Total Assets | 2,642,349 | 1,245,566 | 1,904,300 |
CURRENT LIABILITIES | |||
Accounts and Other Payables | 3,353,174 | 3,157,810 | 2,998,308 |
Due to Related Parties | 300,000 | 512,711 | 543,861 |
Short Term Debt | 567,486 | 865,988 | 747,728 |
Current Portion of Long-Term Debt | 47,944 | ||
Total Current Liabilities | 4,268,604 | 4,536,509 | 4,289,897 |
LONG-TERM DEBT | 67,921 | ||
LONG-TERM DIVIDENDS PAYABLE | 415,625 | 283,772 | |
STOCKHOLDERS’ EQUITY | |||
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 74,070,292 and 52,671,395 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 741 | 527 | 514 |
Additional Paid-In Capital | 38,576,077 | 34,768,615 | 34,052,704 |
Accumulated Comprehensive Loss | (132,508) | (153,254) | (195,287) |
Accumulated Deficit | (40,138,485) | (38,322,456) | (36,527,300) |
Total Stockholders’ Equity (Deficit) | (1,694,175) | (3,706,568) | (2,669,369) |
Total Liabilities and Stockholders’ Equity | 2,642,349 | 1,245,566 | 1,904,300 |
Series B Preferred Stock [Member] | |||
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock, par Value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 74,070,292 | 52,671,395 | 51,401,395 |
Common stock, shares outstanding | 74,070,292 | 52,671,395 | 51,401,395 |
Series B Preferred Stock [Member] | |||
Preferred Stock, par Value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500 | 500 | 500 |
Preferred stock, shares issued | 0 | 257.2 | 247.7 |
Preferred stock, shares outstanding | 0 | 257.2 | 247.7 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUE | ||||||
TOTAL REVENUE | $ 411,452 | $ 278,238 | $ 1,304,725 | $ 1,164,640 | $ 1,484,235 | $ 3,640,796 |
COST OF REVENUE | 136,887 | 447,248 | 781,895 | 1,007,321 | 991,558 | 2,624,461 |
GROSS PROFIT | 274,565 | (169,010) | 522,830 | 157,319 | 492,677 | 1,016,335 |
OPERATING EXPENSES | ||||||
General & Administrative | 698,717 | 411,286 | 2,042,022 | 1,264,945 | 1,721,420 | 1,780,493 |
Total Operating Expenses | 698,717 | 411,286 | 2,042,022 | 1,264,945 | 1,721,420 | 1,780,493 |
LOSS FROM OPERATIONS | (424,151) | (580,296) | (1,519,193) | (1,107,626) | (1,228,743) | (764,158) |
OTHER INCOME (EXPENSE) | ||||||
Miscellaneous Income (Expense) | 12,225 | (68) | 20,001 | 24,282 | ||
Interest Income | 58 | 69 | 193 | 265 | 914 | 411 |
Interest Expense | (29,337) | (32,125) | (256,660) | (98,133) | (398,756) | (383,299) |
Total Other Income (Expense) | (29,280) | (19,831) | (256,535) | (77,867) | (373,560) | (382,888) |
LOSS BEFORE INCOME TAXES | (453,431) | (600,127) | (1,775,728) | (1,185,493) | (1,602,303) | (1,147,046) |
BENEFIT (PROVISION) FOR INCOME TAXES | (7,762) | |||||
NET LOSS | $ (453,431) | $ (600,127) | $ (1,775,728) | $ (1,185,493) | $ (1,602,303) | $ (1,154,808) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) | $ (0.03) | $ (0.02) | $ (0.03) | $ (0.02) |
WEIGHTED AVERAGE SHARES | 68,459,430 | 51,401,395 | 69,581,603 | 51,401,395 | 51,718,895 | 50,693,726 |
Equipment Sales [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 300,756 | $ 132,315 | $ 1,079,861 | $ 912,822 | $ 1,151,027 | $ 3,429,777 |
Service Revenue [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | 106,434 | 143,945 | 219,414 | 244,296 | 325,680 | 207,889 |
Other Revenue [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 4,262 | $ 1,978 | $ 5,450 | $ 7,522 | $ 7,528 | $ 3,130 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | Preferred Stock [Member] |
Beginning balance, value at Dec. 31, 2018 | $ 501 | $ 33,500,169 | $ (35,106,217) | $ (211,907) | $ (1,817,454) | |
Beginning balance, shares at Dec. 31, 2018 | 50,076,885 | 277 | ||||
Stock Based Compensation | 95,167 | 95,167 | ||||
Debt converted to Common Stock | $ 2 | 63,577 | 63,579 | |||
Debt converted to Common Stock, shares | 181,654 | |||||
Common Stock Purchace Warrants for Services | 36,545 | 36,545 | ||||
Common Stock Purchace Warrants for Convertible Debenture incentives | 125,738 | 125,738 | ||||
Convertible Debenture Value | 128,799 | 128,799 | ||||
Conversion of Series B Preferred Stock to Common Stock | $ 11 | (11) | ||||
Conversion of Series B Preferred Stock to Common Stock, shares | 1,142,856 | (40) | ||||
Dividends Accrued - Series B Preferred Stock | (232,275) | (232,275) | ||||
Preferred Stock - Series B for Dividend | 102,720 | 102,720 | ||||
Preferred Stock - Series B for Dividend, shares | 10 | |||||
Net Loss | (1,154,808) | (1,154,808) | ||||
Comprehensive Loss | 16,620 | $ 16,620 | ||||
Exercise of options and warrants, shares | ||||||
Ending balance, value at Dec. 31, 2019 | $ 514 | 34,052,704 | (36,493,300) | (195,287) | $ (2,635,369) | |
Ending balance, shares at Dec. 31, 2019 | 51,401,395 | 247 | ||||
Stock Based Compensation | 165,167 | 165,167 | ||||
Common Stock Purchace Warrants for Services | 11,475 | 11,475 | ||||
Common Stock Purchace Warrants for Convertible Debenture incentives | 136,110 | 136,110 | ||||
Convertible Debenture Value | 105,572 | 105,572 | ||||
Dividends Accrued - Series B Preferred Stock | (226,853) | (226,853) | ||||
Preferred Stock - Series B for Dividend | 95,000 | 95,000 | ||||
Preferred Stock - Series B for Dividend, shares | 10 | |||||
Common Stock Issued for Cash | ||||||
Costs of Capital | ||||||
Warrants for Services | 11,475 | 11,475 | ||||
Warrants for Interest Expense | 136,110 | 136,110 | ||||
Preferred Stock - Series B | ||||||
Dividends - P/S Series B | (226,853) | (226,853) | ||||
Conversion of Debt to stock | ||||||
Payment on Stockholder Prom Note | ||||||
Net Loss | (1,602,303) | (1,602,303) | ||||
Comprehensive Loss | 42,033 | 42,033 | ||||
Exercise of options and warrants | $ 13 | 202,587 | $ 202,600 | |||
Exercise of options and warrants, shares | 1,270,000 | 1,270,000 | ||||
Ending balance, value at Dec. 31, 2020 | $ 527 | 34,768,615 | (38,322,456) | (153,254) | $ (3,706,568) | |
Ending balance, shares at Dec. 31, 2020 | 52,671,395 | 257 | ||||
Stock Based Compensation | 88,000 | 88,000 | ||||
Convertible Debenture Value | 69,729 | 69,729 | ||||
Preferred Stock - Series B for Dividend | 23,750 | 23,750 | ||||
Preferred Stock - Series B for Dividend, shares | 2 | |||||
Common Stock Issued for Cash | $ 54 | 2,112,946 | 2,113,000 | |||
Common Stock Issued for Cash, shares | 5,355,238 | |||||
Costs of Capital | (1,932,736) | (1,932,736) | ||||
Common Stock for Accounts Payable | $ 2 | 99,787 | 99,789 | |||
Common Stock for Accounts Payable, shares | 223,164 | |||||
Common Stock for Costs of Financing | $ 50 | 1,932,686 | 1,932,736 | |||
Common Stock for Costs of Financing, shares | 5,030,000 | |||||
Warrants for Services | 122,966 | 122,966 | ||||
Warrants for Interest Expense | 69,729 | 69,729 | ||||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock | $ 87 | 432,089 | 432,176 | |||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock, shares | 8,720,119 | (259) | ||||
Dividends - P/S Series B | (40,301) | (40,301) | ||||
Conversion of Debt & Interest to Common Stock | $ 21 | 788,516 | 788,537 | |||
Conversion of Debt & Interest to Common Stock, shares | 2,070,376 | |||||
Net Loss | (1,775,728) | (1,775,728) | ||||
Comprehensive Loss | 20,746 | 20,746 | ||||
Ending balance, value at Sep. 30, 2021 | $ 741 | $ 38,576,077 | $ (40,138,485) | $ (132,508) | $ (1,694,175) | |
Ending balance, shares at Sep. 30, 2021 | 74,070,292 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Loss | $ (1,775,728) | $ (1,185,493) | $ (1,602,303) | $ (1,154,808) |
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities | ||||
Depreciation and Amortization | 17,148 | 10,000 | 25,695 | 25,803 |
Amortization of Deferred Financing Costs | ||||
Stock Option Compensation | 88,000 | 165,167 | 95,167 | |
Bad Debt Expense | ||||
Convertible Debt Value | 69,729 | |||
Common Stock Warrants Issued for Services | 122,966 | 11,475 | 36,545 | |
Common Stock Warrants Issued for Interest | 69,729 | 241,682 | 254,537 | |
(Increase) Decrease in Operating Assets | ||||
Accounts Receivable | 150,551 | 646,046 | 669,155 | (573,620) |
Inventory | (236,768) | 132,747 | (89,121) | 920,160 |
Other Current Assets | (328,086) | (274,302) | 84,822 | 66,291 |
Other Assets | 60,476 | 41,234 | (19,242) | (39,414) |
Increase (Decrease) in Accounts and Other Payables | 582,310 | 535,074 | 367,102 | 637,418 |
Net Cash Used in Operating Activities | (1,179,673) | (94,695) | (145,568) | 268,079 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of Property and Equipment | (17,352) | (35,305) | (21,915) | (1,496) |
Proceeds from Sale of Equipment | ||||
Net Cash Provided by (Used in) Investing Activities | (17,352) | (35,305) | (21,915) | (1,496) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Changes in Restricted Cash | (59,209) | (126,914) | (7,385) | 80,238 |
Proceeds from (Payments on) Long-Term Notes Payable/Debt | 115,865 | |||
Proceeds from (Payments on) Short-Term Notes Payable/Debt | 71,248 | 268,424 | 152,260 | (241,704) |
Proceeds from (Payments to) Due to Related Parties | (82,711) | (69,327) | (31,150) | (55,072) |
Common Stock Issued, Net of (Cost of Capital) | 2,113,000 | 63,578 | ||
Proceeds from Exercise of Stock Options | ||||
Deferred Finance Costs, Net | ||||
Net Cash Provided by Financing Activities | 2,158,193 | 72,183 | 113,725 | (152,960) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 20,745 | 15,739 | 46,309 | 16,620 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 981,913 | (42,078) | (7,449) | 130,243 |
Cash and Cash Equivalents- Beginning of Period | 249,521 | 256,970 | 256,970 | 126,727 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 1,231,434 | 214,892 | 249,521 | 256,970 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest Paid | 2,096 | 1,806 | 5,016 | 13,500 |
Income Tax Paid | 7,762 | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Warrants Issued for Interest Expense | 136,110 | 125,738 | ||
Convertible Debenture conversion features | 105,572 | 128,799 | ||
Warrants for services | 11,475 | 36,545 | ||
Dividends Paid with Series B Preferred Stock | $ 95,000 | $ 102,720 | ||
Debenture Principal converted to Common Stock | 499,750 | |||
Debenture Accrued Interest converted to Common Stock | 288,787 | |||
Rent Accounts Payable to related Party converted to Common Stock | 99,789 | |||
Common Stock issued for Consulting Agreements related to Cost of Capital | 1,932,736 | |||
Accrued Dividends converted to Common Stock | $ 455,926 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance system and IoT (Internet of Things) devices and platforms. Our evolution is in response to digital transformation demands from many cities and organizations across the globe. Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video surveillance systems. IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management systems (VMS). IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements. AI Functions ● Object Search ● Face Search (No Database Required) ● Face Recognition (from a Database) ● License Plate Recognition (100+ Countries), includes make and model ● Intrusion Detection ● Weapon Detection ● Fire Detection ● People Counting ● Vehicle Counting ● Temperature Detection ● Public Health Analytics (Facemask Detection, ● QR and Barcode Detection Key Features ● Live Camera View ● Live Tracking ● Abnormality Detection – Vehicle/Person wrong direction detection ● Vehicle/Person Loitering Detection ● Fall Detection ● Illegal Parking Detection ● Heatmap Generation IvedaAI consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level or data center for centralized cloud model. We combined hardware and artificial intelligence software for fast and efficient video search for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera. IvedaAI works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across dozens to thousands of cameras in less than 1 second. IvedaAI products are designed to maximize efficiency, save time, and cut cost. Instead of watching hours of video recording after-the-fact, users can set up alerts. Iveda offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and patient/elder care. Our gateway and station serve as the main hub for sensors and devices in any given area. They are equipped with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB. They connect to the Internet via Ethernet or cellular data network. We provide IoT platforms that enable centralized device management and push digital services on a massive scale. Our smart devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices. We also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects. Our smart power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software for monitoring and control purposes. This line of product includes smart power, water meter, smart lighting controls systems, and smart payment system. Iveda’s Cerebro manages all the components of our smart power technology including statistics on energy consumption. Cerebro is a software platform designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive user interface. Cerebro’s roadmap includes dashboard for all of Iveda’s platforms for central management of all devices. Cerebro is system agnostic and will support cross-platform interoperability. The common unified user interface will allow remote control of platforms, sensors and subsystems throughout an entire environment. This integration and unification of all subsystems enable acquisition and analysis of all information on one central command center, allowing comprehensive, effective, and overall management and protection of a city. In the last few years, smart city has been a hot topic among cities across the globe. With little to no human interaction, technology increases efficiency, expedites decision making, and reduces response time. Dwindling public safety budgets and resources has necessitated the transformation. More and more municipalities are using next-generation technologies to improve the safety and security of its citizens. Our response is our complete suite of IoT technologies, including AI intelligent video search technology, smart sensors, tracking devices, video surveillance systems, and smart power. Historically, we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and marketing. We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety of businesses and organizations. While we only used off-the shelf camera systems from well-known camera brands, we now source our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs. We now have the capability to provide IP cameras and NVRs based on customer specifications. We still utilize ONVIF (Open Network Video Interface Forum) cameras which is a global standard for the interface of IP-based physical security products. In 2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers such as telecommunications companies, integrators and other technology resellers already providing services to an existing customer base. Partnering with service providers that have an existing loyal subscriber base allows us to focus on servicing just a handful of our partners and concentrating on our technology offering. Service providers leverage their end-user infrastructure to sell, bill, and provide customer service for Iveda’s product offering. This business model provides dual revenue streams – one from hardware sales and the other from monthly licensing fees. MEGAsys ® 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 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. We generated accumulated losses of approximately $ 38 million from January 2005 through December 31, 2020 and have insufficient working capital and cash flows to support operations. These factors raise substantial doubt about our ability to continue as a going concern. The 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. Impairment of Long-Lived Assets We have a significant amount of property and equipment, consisting primarily of leased equipment. We review the recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. We did no t make any impairment for the nine months ended September 30, 2021 or the years ended December 31, 2020 and 2019. Basis of Accounting Our consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Revenue and Expense Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services primarily to municipalities and commercial customers in the following manner: ● The majority of MEGAsys sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the equipment is shipped to the end customer and charged for service when installation or maintenance work is performed. Revenues from fixed-price equipment installation contracts (project sales) are recognized on the percentage-of-completion method. The percentage completed is measured by the percentage of costs incurred to date to estimated total costs for each contract. This method is used because management considers expended costs to be the best available measure of progress on these contracts. Because of inherent uncertainties in estimating costs and revenues, it is at least reasonably possible that the estimates used will change. Contract costs include all direct material, subcontractors, labor costs, and equipment costs and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenues when their realization is reasonably assured. Claims are included in revenues when realization is probable and the amount can be reliably estimated. ● The majority of Iveda US hardware sales are to international customers and are made through independent distributors or integrators who purchase products from the Company at a wholesale price and sell to the end user (typically municipalities or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor or integrator generally maintains product inventory or product is drop shipped from the manufacturer, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor or as directed by the distributor consistent with the terms of the distribution agreement. ● Iveda US also sells software that include licensing fees that are paid either monthly or yearly. The revenues are recorded monthly, if the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective time period. Comprehensive Loss Comprehensive loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Our current component of other comprehensive income is the foreign currency translation adjustment. 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 FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 million. At times, amounts on deposit in Taiwan may be in excess of the CDIC Insurance limit. Accounts receivables 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. Two customers represented approximately 40% and 77% of total accounts receivable of $ 76,063 and $ 226,614 as of September 30, 2021 and December 31, 2020, respectively. These customers are longtime customers, and we don’t expect any problem with collectability of these accounts receivable. We had revenue from one customer with greater than 10% of total revenues during the nine months ended September 30, 2021 that represented approximately 25% of total revenues. We had $ 219,222 revenues ( 25% ) from Chunghwa Telecom. We had revenue from two customers with greater than 10% of total revenues during 2020 that represented approximately 39% of total revenues. We had $ 414,415 revenues ( 28% ) from Chunghwa Telecom and $ 159,048 revenues ( 11% ) from Siemens . No other customers represented greater than 10% of total revenues in nine months ended September 30, 2021 and 2020. Cash and Cash Equivalents For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For our U.S.-based segment, receivables past due more than 120 days are considered delinquent. For our Taiwan-based segment, receivables over one year are considered delinquent. Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer. As of September 30, 2021 and December 31, 2020, respectively, an allowance for uncollectible accounts of $ 0 and $ 0 was deemed necessary for our U.S.-based segment. Deposits – Current Our current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for new proposed projects. Other Current Assets Other current assets represent cash paid in advance to insurance companies and vendors for service coverage extending into subsequent periods. Inventories We review our inventories for excess or obsolete products or components based on an analysis of historical usage and an evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. The allowance for slow-moving and obsolete inventory is $ 0 and $ 0 , as of September 30, 2021 and December 31, 2020, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the nine months ended September 30, 2021 and September 30, 2020 was $ 10,482 and $ 5,000 , respectively. 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 of nine months to ten years . Other intangible assets and trademarks are fully amortized at September 30, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 2022 - Total $ 6,666 Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of MEGAsys’ office space, and tender deposits placed with local governments and major customers in Taiwan as part of the bidding process, which are anticipated to be held more than one year if the bid is accepted. Income Taxes Deferred income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax assets that, more likely than not, will be realized. Income tax expense is the tax payable for the year and the change during the year in deferred tax assets and liabilities. During 2020, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2020. We are subject to U.S. federal income tax as well as state income tax. Our U.S. income tax returns are subject to review and examination by federal, state, and local authorities. Our U.S. tax returns for the years 2016 to 2020 are open to examination by federal, local, and state authorities. Our Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance. Our Taiwan tax return for the years 2016 to 2020 are open to examination by the Taiwan Ministry of Finance. Restricted Cash Restricted cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment. Accounts and Other Payables SCHEDULE OF ACCOUNTS AND OTHER PAYABLES September 30, 2021 December 31, 2020 (Unaudited) Accounts Payable $ 473,977 $ 405,819 Accrued Expenses 2,774,214 2,751,127 Deferred Revenue and Customer Deposits 104,983 864 Accounts and Other Payables $ 3,353,174 $ 3,157,810 Deferred Revenue Advance payments received from customers on future installation projects are recorded as deferred revenue. Stock-Based Compensation On January 1, 2006, we adopted the fair value recognition provisions of ASC 718, “Share-Based Payment,” which requires the recognition of an expense related to the fair value of stock-based compensation awards. We elected the modified prospective transition method as permitted by ASC 718. Under this transition method, stock-based compensation expense includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718. We recognize stock-based compensation expense on a straight-line basis over the requisite service period of the award. The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2020 and 2019, were estimated using the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.” Therefore, no compensation expense is recognized for these awards in accordance with ASC 718. We recognized $ 165,167 and $ 95,167 of stock-based compensation expense for the years ended December 31, 2020 and 2019, respectively and $ 88,000 for the nine months ended September 30, 2021. 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, 2021 and December 31, 2020. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts receivable, 0 payable, accrued expenses, and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because they are short-term in nature and their carrying amounts approximate their fair values or because they are receivable or payable on demand. 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 business conducted and the customer bases located in the United States. The net revenues and net assets (liabilities) for other significant geographic regions are as follows: SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS September 30, 2021 Net Revenue Net Assets United States $ 59,200 $ (2,404,401 ) Republic of China (Taiwan) $ 1,245,525 $ 710,225 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. Reclassification Certain amounts in 2020 have been reclassified to conform to the 2021 presentation. New Accounting Standards No new relevant accounting standards | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance system and IoT (Internet of Things) devices and platforms. Our evolution is in response to digital transformation demands from many cities and organizations across the globe. Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video surveillance systems. IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management systems (VMS). IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements. AI Functions ● Object Search ● Face Search (No Database Required) ● Face Recognition (from a Database) ● License Plate Recognition (100+ Countries), includes make and model ● Intrusion Detection ● Weapon Detection ● Fire Detection ● People Counting ● Vehicle Counting ● Temperature Detection ● Public Health Analytics (Facemask Detection, ● QR and Barcode Detection Key Features ● Live Camera View ● Live Tracking ● Abnormality Detection – Vehicle/Person wrong direction detection ● Vehicle/Person Loitering Detection ● Fall Detection ● Illegal Parking Detection ● Heatmap Generation IvedaAI consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level or data center for centralized cloud model. We combined hardware and artificial intelligence software for fast and efficient video search for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera. IvedaAI works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across dozens to thousands of cameras in less than 1 second. IvedaAI products are designed to maximize efficiency, save time, and cut cost. Instead of watching hours of video recording after-the-fact, users can set up alerts. Iveda offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and patient/elder care. Our gateway and station serve as the main hub for sensors and devices in any given area. They are equipped with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB. They connect to the Internet via Ethernet or cellular data network. We provide IoT platforms that enable centralized device management and push digital services on a massive scale. Our smart devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices. We also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects. Our smart power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software for monitoring and control purposes. This line of product includes smart power, water meter, smart lighting controls systems, and smart payment system. Iveda’s Cerebro manages all the components of our smart power technology including statistics on energy consumption. Cerebro is a software platform designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive user interface. Cerebro’s roadmap includes dashboard for all of Iveda’s platforms for central management of all devices. Cerebro is system agnostic and will support cross-platform interoperability. The common unified user interface will allow remote control of platforms, sensors and subsystems throughout an entire environment. This integration and unification of all subsystems enable acquisition and analysis of all information on one central command center, allowing comprehensive, effective, and overall management and protection of a city. In the last few years, smart city has been a hot topic among cities across the globe. With little to no human interaction, technology increases efficiency, expedites decision making, and reduces response time. Dwindling public safety budgets and resources has necessitated the transformation. More and more municipalities are using next-generation technologies to improve the safety and security of its citizens. Our response is our complete suite of IoT technologies, including AI intelligent video search technology, smart sensors, tracking devices, video surveillance systems, and smart power. Historically, we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and marketing. We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety of businesses and organizations. While we only used off-the shelf camera systems from well-known camera brands, we now source our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs. We now have the capability to provide IP cameras and NVRs based on customer specifications. We still utilize ONVIF (Open Network Video Interface Forum) cameras which is a global standard for the interface of IP-based physical security products. In 2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers such as telecommunications companies, integrators and other technology resellers already providing services to an existing customer base. Partnering with service providers that have an existing loyal subscriber base allows us to focus on servicing just a handful of our partners and concentrating on our technology offering. Service providers leverage their end-user infrastructure to sell, bill, and provide customer service for Iveda’s product offering. This business model provides dual revenue streams – one from hardware sales and the other from monthly licensing fees. MEGAsys®, our subsidiary in Taiwan, specializes in deploying new, and integrating existing, video surveillance systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City. MEGAsys combines security surveillance products, software, and services to provide integrated security solutions to the end user. Through MEGAsys, we have access not only to Asian markets but also to Asian manufacturers and engineering expertise. MEGAsys is our research and development arm, working with a team of developers in Taiwan. 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 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. We generated accumulated losses of approximately $ 38 Impairment of Long-Lived Assets We have a minimal amount of property and equipment, consisting primarily of leased equipment. We review the recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. We did not make any impairment for the years ended December 31, 2020 and 2019. Basis of Accounting Our consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Revenue and Expense Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services primarily to municipalities and commercial customers in the following manner: ● The majority of MEGAsys sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the equipment is shipped to the end customer and charged for service when installation or maintenance work is performed. Revenues from fixed-price equipment installation contracts (project sales) are recognized on the percentage-of-completion method. The percentage completed is measured by the percentage of costs incurred to date to estimated total costs for each contract. This method is used because management considers expended costs to be the best available measure of progress on these contracts. Because of inherent uncertainties in estimating costs and revenues, it is at least reasonably possible that the estimates used will change. Contract costs include all direct material, subcontractors, labor costs, and equipment costs and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenues when their realization is reasonably assured. Claims are included in revenues when realization is probable, and the amount can be reliably estimated. ● The majority of Iveda US hardware sales are to international customers and are made through independent distributors or integrators who purchase products from the Company at a wholesale price and sell to the end user (typically municipalities or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor or integrator generally maintains product inventory or product is drop shipped from the manufacturer, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor or as directed by the distributor consistent with the terms of the distribution agreement. ● Iveda US also sells software that include licensing fees that are paid either monthly or yearly. The revenues are recorded monthly, if the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective time period. Comprehensive Loss Comprehensive loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Our current component of other comprehensive income is the foreign currency translation adjustment. 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 three financial institutions, two in the United States and one in Taiwan. At times, amounts on deposit in the United States may be in excess of the FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 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. Two customers represented approximately 77% 83% 226,614 895,769 We had revenue from two customers with greater than 10% of total revenues during 2020 that represented approximately 39% 414,415 28% 159,048 11% We had revenue from three customers with greater than 10% of total revenues during 2019 that represented approximately 76% 1,986,534 54% 389,888 11% 400,065 11% No other customers represented greater than 10% of total revenues in 2020 and 2019. Cash and Cash Equivalents For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For our U.S.-based segment, receivables past due more than 120 days are considered delinquent. For our Taiwan-based segment, receivables over one year are considered delinquent. Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer. As of December 31, 2020 and 2019, respectively, an allowance for uncollectible accounts of $ 0 0 3,380 3,172 Trade receivables, net are comprised of the following: SCHEDULE OF TRADE RECEIVABLES 2020 2019 Trade receivables, gross $ 229,994 $ 898,941 Allowance for doubtful accounts (3,380 ) (3,172 ) Trade receivables, net $ 226,614 $ 895,769 Other current assets are comprised of the following: SCHEDULE OF OTHER CURRENT ASSESTS 2020 2019 Notes receivables $ - $ 115,305 Deposits-current 104,617 68,992 Advance to suppliers 3,832 531 Prepaid expenses and other current assets 13,652 27,095 Other current assets $ 122,101 $ 211,923 Deposits – Current Our current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for new proposed projects. Other Current Assets Other current assets represent cash paid in advance to insurance companies and vendors for service coverage extending into subsequent periods. Inventories We review our inventories for excess or obsolete products or components based on an analysis of historical usage and an evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. The allowance for slow-moving and obsolete inventory is $ 11,228 10,508 Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the years ended December 31, 2020 and 2019 was $ 5,695 5,804 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 of six months to ten years. Other intangible assets are fully amortized at December 31, 2020. Future amortization of trademarks is as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS - 2021 $ 6,666 Total $ 6,666 Other Assets Other assets are comprised of the following: SCHEDULE OF OTHER ASSETS COMPRISED As of December 31, 2020 2019 Deposits-long-term $ 60,476 $ 41,234 Deferred tax assets $ 171,148 $ 160,653 Deferred finance costs $ - $ - Other assets $ 162,381 $ 364,320 Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of MEGAsys’ office space, and tender deposits placed with local governments and major customers in Taiwan as part of the bidding process, which are anticipated to be held more than one year if the bid is accepted. Income Taxes Deferred income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax assets that, more likely than not, will be realized. Income tax expense is the tax payable for the year and the change during the year in deferred tax assets and liabilities. During 2020, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2020. We are subject to U.S. federal income tax as well as state income tax. Our U.S. income tax returns are subject to review and examination by federal, state, and local authorities. Our U.S. tax returns for the years 2015 to 2019 are open to examination by federal, local, and state authorities. Our Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance. Our Taiwan tax return for the years 2015 to 2019 are open to examination by the Taiwan Ministry of Finance. Restricted Cash Restricted cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment. Accounts and Other Payables Accounts and other payables are comprised of the following: SCHEDULE OF ACCOUNTS AND OTHER PAYABLES 2020 2019 Accounts Payable $ 405,819 $ 521,540 Accrued Expenses 2,751,127 2,472,617 Deferred Revenue 864 4,151 Accounts and Other Payables $ 3,157,810 $ 2,998,308 Deferred Revenue Advance payments received from customers on future installation projects are recorded as deferred revenue. Stock-Based Compensation On January 1, 2006, we adopted the fair value recognition provisions of ASC 718, “Share-Based Payment,” which requires the recognition of an expense related to the fair value of stock-based compensation awards. We elected the modified prospective transition method as permitted by ASC 718. Under this transition method, stock-based compensation expense includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718. We recognize stock-based compensation expense on a straight-line basis over the requisite service period of the award. The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2020 and 2019, were estimated using the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.” Therefore, no compensation expense is recognized for these awards in accordance with ASC 718. We recognized $ 165,167 95,167 Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of December 31, 2020 and 2019. 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 they are short-term in nature and their carrying amounts approximate their fair values or because they are receivable or payable on demand. 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 business conducted and the customer bases located in the United States. The net revenues and net assets (liabilities) for other significant geographic regions are as follows: SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS December 31, 2020 Net Revenue Net Assets (Liabilities) United States $ 435,608 $ (4,375,933 ) Republic of China (Taiwan) $ 1,048,627 $ 669,365 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 Solutions, Inc., 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. SCHEDULE OF REPORTING SEGMENTS Year Ended Year Ended Condensed Dec. 31, 2020 Dec. 31, 2020 Consolidated Iveda MEGAsys Total Revenue $ 435,608 $ 1,048,627 $ 1,484,235 Cost of Revenue 381,924 609,634 991,558 Gross Profit 53,684 438,993 492,677 Depreciation and Amortization 20,000 5,695 25,695 General and Administrative 1,176,860 518,865 1,695,725 Gain (Loss) from Operations (1,143,176 ) (85,567 ) (1,228,743 ) Foreign Currency Gain - - - Other Misc Income 24,282 24,282 Gain on Disposal of Assets, Net - Interest Income - 914 914 Interest Expense (396,348 ) (2,408 ) (398,756 ) Gain (Loss) Before Income Taxes (1,539,524 ) (62,779 ) (1,602,303 ) Benefit (Provision) for Income Taxes - - Net Income (Loss) $ (1,539,524 ) $ (62,779 ) $ (1,602,303 ) Revenues as shown below represent sales to external customers for each segment. Intercompany revenues have been eliminated and are immaterial. 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. SCHEDULE OF REVENUES,LONG-LIVED ASSETS, INVENTORY AND PROPERTY AND EQUIPMENT FOR OPERATING SEGMENTS December 31, 2020 2019 Revenue United States $ 435,608 $ 178,886 Republic of China (Taiwan) 1,069,926 3,461,910 Elimination of intersegment revenues (21,299 ) - Revenues $ 1,484,235 $ 3,640,796 December 31, 2020 2019 Operating Earnings (Loss) United States $ (1,539,524 ) $ (1,331,274 ) Republic of China (Taiwan) (62,779 ) 193,086 Operating Earnings (Loss) $ (1,602,303 ) $ (1,138,188 ) December 31, 2020 2019 Property and Equipment, Net United States $ 0 $ 0 Republic of China (Taiwan) 22,027 5,807 Property and Equipment, Net $ 22,027 $ 5,807 December 31, 2020 2019 Additions to (Deletions from) Long-Lived Assets United States $ - Republic of China (Taiwan) 21,915 1,496 Additions to (Deletions from) Long-Lived Assets $ 21,915 $ 1,496 December 31, 2020 2019 Inventory United States $ - $ - Republic of China (Taiwan) 221,868 132,747 Inventory $ 221,868 $ 132,747 December 31, 2020 2019 Total Assets United States $ 40,141 $ 130,394 Republic of China (Taiwan) 1,205,425 1,773,906 Total Assets $ 1,245,566 $ 1,904,300 Reclassification Certain amounts in 2019 have been reclassified to conform to the 2020 presentation. New Accounting Standards No new relevant standards |
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Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
RELATED PARTIES | NOTE 2 RELATED PARTIES SCHEDULE OF RELATED PARTY TRANSACTIONS September 30, 2021 December 31, 2020 (Unaudited) During 2020 one of the three MEGAsys directors loaned money to MEGAsys at no interest. - 37,711 On October 18, 2018, we entered into a debenture agreement for $ 50,000 with Quadrant International LLC (four partners, three of which are related parties) at 0.0% interest per annum with interest and principal payable on the maturity date of December 31, 2019 . - 45,534 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. *No longer a Director - 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 purchase 10,000 shares of our common stock with an exercise price of $ 0.77 per share. *No longer a Director - 100,000 * On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, formerly 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 December 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 exercise price of $ 0.77 per share. This debenture was extended to December 31, 2016 . Mr. Omi is currently the CTO of the company. 200,000 200,000 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 exercise price of $ 0.77 per share This debenture was extended to December 31, 2016 $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 $ 300,000 512,711 Less Current Portion (300,000 ) (512,711 ) Less: Debt Discount - - Total Long-Term $ - $ - | NOTE 2 RELATED PARTIES SCHEDULE OF RELATED PARTY TRANSACTIONS 2020 2019 During 2019 and 2020 MEGAsys received unsecured loans from one of its directors. These amounts represent the outstanding balance at yearend. $ 37,177 $ 63,861 On October 18, 2018, we entered into a debenture agreement for $ 50,000 0.0% December 31, 2019 45,534 50,000 On September 10, 2014, we entered into a debenture agreement with Mr. Alex Kuo, a member of the Board of Directors, for $ 30,000 9.5% December 31, 2015 3,000 0.77 30,000 30,000 On September 8, 2014, we entered into a debenture agreement with Mr. Kuo’s wife, Li-Min Hsu, for $ 100,000, 9.5% December 31, 2015 10,000 0.77 100,000 100,000 On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, who was a member of our Board of Directors of the company for $ 200,000 9.5% December 31, 2016 20,000 0.77 December 31, 2016 200,000 200,000 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 10% December 19, 2014 5,000 December 31, 2015 10,000 0.77 December 31, 2016 $ 100,000 $ 100,000 Total Due to Related Parties $ 512,711 $ 543,861 Less Current Portion (512,711 ) (543,861 ) Less: Debt Discount - - Total Long-Term $ - $ - |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SHORT-TERM AND LONG-TERM DEBT | NOTE 3 SHORT-TERM AND LONG-TERM DEBT The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT September 30, 2021 December 31, 2020 (Unaudited) $ - $ 100,000 Unsecured loan from a shareholder in April 2018 for $ 100,000 at a 50% interest rate and six month maturity, was due October 2018 . principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. $ - $ 100,000 Note Payable to Siemens due December 31, 2021 at 0% interest. 82,486 Loan from Hua Nan Bank in 2020 at 2.42% interest rate per annum and due December 2021 , 2019 loan at 2.61% interest paid, February - April 2020 71,238 Debenture agreements with various shareholders at 10% interest rate beginning in February 2019 - December 2019, one year maturity, were due February 2020 – December 2020 , principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. 210,000 346,250 Debenture agreements with various shareholders at 10% - 20% interest rate beginning in January 2020 - February 2021, one year maturity, due January 2021 – February 2022 , principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. 275,000 313,500 Short-term three month loan at 0% interest from a shareholder in June 2020 , was due September 2020 - 35,000 Balance at end of period $ 567,486 $ 865,988 The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT 115,865 - Loans from Shanghai Bank with interest rates 1.00% per annum due February 2024 115,865 - Current Portion of Long-term debt (47,944 ) - Balance at end of period $ 67,921 - | NOTE 3 SHORT-TERM AND LONG-TERM DEBT Short-term bank loans were initiated with MEGAsys throughout 2019 and 2020 with Taiwan Banks and Iveda US secured loans from shareholders during that same period. The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT December 31, 2020 December 31, 2019 Unsecured loan from a shareholder in April 2018 for $ 100,000 50% six month maturity, was due October 2018 0.35 $ 100,000 $ 100,000 Note Payable to Siemens due December 31, 2021 at 0% interest. 82,486 Loan from Hua Nan Bank in 2020 at 2.42% due June 2021 2.61% February - April 2020 71,238 267,478 Debenture agreements with various shareholders at 10% beginning in February 2019 - December 2019, one year maturity, was due February 2020 – December 2020 0.35 346,250 346,350 Debenture agreements with various shareholders at 10% 20% beginning in January 2020 - December 2020, one year maturity, due January 2021 – December 2021 0.35 313,500 - Short term three month loan at 0% September 2020 35,000 - Balance at end of period $ 865,988 $ 713,828 The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT 115,865 - Loans from Shanghai Bank with interest rates 1.00% per annum due February 2024 115,865 - Current Portion of Long-term debt (47,944 ) - Balance at end of period $ 67,921 - |
PREFERRED STOCK
PREFERRED STOCK | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
PREFERRED STOCK | NOTE 4 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 of 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 initial conversion price of $ 1.00 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 automatically converted 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) at a price per share that is lower than the then-applicable conversion price for the Series A Preferred Stock, the conversion price for the Series A Preferred Stock will be adjusted to account for the dilutive issuance. 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 A Preferred Stock will be appropriately decreased to protect the Series A 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 A Preferred Stock will increase in order to proportionately decrease the number of shares issuable upon conversion . 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 of 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 shares of our Series B Preferred Stock outstanding, 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. 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 Stockholders 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. As of September 30, 2021, we have no outstanding shares of Series B Preferred Stock. | NOTE 4 PREFERRED STOCK We are currently authorized to issue up to 100,000,000 0.00001 10,000,000 500 Series A Preferred Stock We are authorized to issue up to 10,000,000 9.5 1.00 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 initial conversion price of $ 1.00 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) at a price per share that is lower than the then-applicable conversion price for the Series A Preferred Stock, the conversion price for the Series A Preferred Stock will be adjusted to account for the dilutive issuance. 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 A Preferred Stock will be appropriately decreased to protect the Series A 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 A Preferred Stock will increase in order to proportionately decrease the number of shares issuable upon conversion . Series B Preferred Stock We are authorized to issue up to 500 9.5 10,000 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 0.75 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. |
EQUITY
EQUITY | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
EQUITY | NOTE 5 EQUITY 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. The Company raised $ 2,113,000 during the nine months ended September 30, 2021 issuing 5,355,238 shares of common stock and warrants to purchase common shares with a Fair Market Value of approximately $ 900,000 . | NOTE 5 EQUITY Common Stock We are authorized to issue up to 100,000,000 0.00001 On April 21, 2016, certain Series B Preferred Shareholders exercised and exchanged $ 380,000 0.35 1.00 0.35 1.00 The initial exercise price of the Tranche B Warrants was $ 1.10 0.35 As a result of this event, the exercise price of warrants issued to Series A Preferred Shareholders adjusted from $ .75 .35 .97 .86 |
STOCK OPTION PLAN AND WARRANTS
STOCK OPTION PLAN AND WARRANTS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
STOCK OPTION PLAN AND WARRANTS | NOTE 6 STOCK OPTION PLAN AND WARRANTS Stock Options On October 15, 2009, we adopted the 2009 Stock Option Plan (the “2009 Option Plan”), with an aggregate number of 1,500,000 shares of common stock issuable under the plan. The purpose of the 2009 Option Plan was to assume options that were already issued in the 2006 and 2008 Option plans under Iveda Corporation after the merger with Charmed Homes. On January 18, 2010, we adopted the 2010 Stock Option Plan (the “2010 Option Plan”), which allows the Board to grant options to purchase up to 1,000,000 shares of common stock to directors, officers, key employees, and service providers of our company. In 2011, the 2010 Option Plan was amended to increase the number of shares issuable under the 2010 Option Plan to 3,000,000 shares. In 2012, 2010 Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 13,000,000 shares. The shares issuable pursuant to the 2010 Option Plan are registered with the SEC under Forms S-8 filed on February 4, 2010 (No. 333- 164691), June 24, 2011 (No. 333-175143), and December 4, 2013 (No. 333-192655). The 2010 Option Plan expired on January 18, 2020. We adopted a new plan called Iveda Solutions, Inc. 2020 Plan (the “2020 Plan”). The 2020 Plan will have a maximum of 10 million option shares authorized with similar terms and conditions to the 2010 Option Plan. This plan has not been approved by the shareholders and as of December 31, 2020 and 2,500,000 options were outstanding under the 2020 Option Plan. Stock options may be granted as either incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or as options not qualified under Section 422 of the Code. All options are issued with an exercise price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors. Incentive stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m) of the Code. Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m). Under the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant. We have also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price no less than the fair 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 to others that ratably vest over a period of time up to four years. Standard vested options may be exercised up to three months following date of termination of the relationship 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. At December 31, 2020, we had no unrecognized stock- based compensation. Stock option transactions during 2020 and 2019 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2020 2019 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 6,741,200 $ 0.78 6,046,200 $ 0.83 Granted 2,500,000 0.37 695,000 0.28 Exercised (1,270,000 ) 0.16 - - Forfeited or Canceled (355,000 ) 1.12 - - Outstanding at End of Year 7,616,200 0.73 6,741,200 0.78 Options Exercisable at Year-End 7,616,200 0.73 6,741,200 0.78 Weighted-Average Fair Value of Options Granted During the Year $ 0.25 $ 0.20 Information with respect to stock options outstanding and exercisable at December 31, 2020 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.04 - $ 1.75 7,616,200 5.7 $ 0.73 7,616,200 $ 0.73 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. SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL 2020 2019 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 % 1.67 % Warrant transactions during 2020 and 2019 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2020 2019 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 5,563,509 $ 0.38 4,796,876 $ 0.40 Granted 989,856 0.35 1,335,178 0.35 Exercised - Forfeited or Canceled (2,203,331 ) 0.36 (568,545 ) 0.45 Outstanding at End of Year 4,350,034 0.38 5,563,509 0.38 Warrant Exercisable at Year-End 4,350,034 0.38 5,563,509 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.10 - $ 0.26 $ 0.00 - $ 0.22 Information with respect to warrants outstanding and exercisable at December 31, 2020 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION Warrants Outstanding Warrants Exercisable Range of Number Outstanding at Weighted- Weighted- Number Exercisable at Weighted- $ 0.35 - $ 1.65 4,350,034 1.0 $ 0.38 4,350,034 $ 0.38 The fair value of each warrant 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. SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE 2020 2019 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.19 - 1.59 % 1.74 - 2.47 % | NOTE 6 STOCK OPTION PLAN AND WARRANTS Stock Options On October 15, 2009, we adopted the 2009 Stock Option Plan (the “2009 Option Plan”), with an aggregate number of 1,500,000 0 On January 18, 2010, we adopted the 2010 Stock Option Plan (the “2010 Option Plan”), which allows the Board to grant options to purchase up to 1,000,000 3,000,000 13,000,000 7,616,200 Stock options may be granted as either incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or as options not qualified under Section 422 of the Code. All options are issued with an exercise price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors. Incentive stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m) of the Code. Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m). Under the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant. We have also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price no less than the fair 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 to others that ratably vest over a period of time up to four years. Standard vested options may be exercised up to three months following date of termination of the relationship 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. At December 31, 2020, we had unrecognized stock- based compensation of $ 0 three years Stock option transactions during 2020 and 2019 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2020 2019 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at Beginning of Year 6,741,200 $ 0.78 6,046,200 $ 0.83 Granted 2,500,000 0.37 695,000 0.28 Exercised (1,270,000 ) 0.16 - - Forfeited or Canceled (355,000 ) 1.12 - - Outstanding at End of Year 7,616,200 0.73 6,741,200 0.78 Options Exercisable at Year-End 7,616,200 0.73 6,741,200 0.78 Weighted-Average Fair Value of Options Granted During the Year $ 0.25 $ 0.20 Information with respect to stock options outstanding and exercisable at December 31, 2020 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Exericse Prices Number Outstanding at December 31, 2020 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable at December 31, 2020 Weighted-Average Exercise Price $ 0.04 1.75 7,616,200 5.7 $ 0.73 7,616,200 $ 0.73 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. SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL 2020 2019 Expected Life 5 5 Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 % 1.67 % Warrant transactions during 2020 and 2019 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2020 2019 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at Beginning of Year 5,563,509 $ 0.38 4,796,876 $ 0.40 Granted 989,856 0.35 1,335,178 0.35 Exercised - Forfeited or Canceled (2,203,331 ) 0.36 (568,545 ) 0.45 Outstanding at End of Year 4,350,034 0.38 5,563,509 0.38 Warrant Exercisable at Year-End 4,350,034 0.38 5,563,509 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.10 0.26 $ 0.00 0.22 Information with respect to warrants outstanding and exercisable at December 31, 2020 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION Warrants Outstanding Warrants Exercisable Range of Exericse Prices Number Outstanding at December 31, 2020 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable at December 31, 2020 Weighted-Average Exercise Price $ 0.35 1.65 4,350,034 1.0 $ 0.38 4,350,034 $ 0.38 The fair value of each warrant 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. SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE 2020 2019 Expected Life 1.5 1.5 Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.19 1.59 1.74 2.47 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | NOTE 7 INCOME TAXES U.S. Federal Corporate Income Tax Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2019 Tax Operating Loss Carryforward - USA $ 9,800,000 $ 9,600,000 Other - - Valuation Allowance - USA (9,800,000 ) (9,600,000 ) Deferred Tax Assets, Net $ - $ - The valuation allowance increased approximately $ 2.1 million, primarily as a result of the increased net operating losses of our U.S.- based segment. As of December 31, 2020, we had federal net operating loss carryforwards for income tax purposes of approximately $ 25.0 million which will begin to expire in 2025 . We also had Arizona and California net operating loss carryforwards for income tax purposes of approximately $ 19.4 million and $ 2.0 million, respectively, which began to expire in 2014 . These carryforwards have been utilized in the determination of the deferred income taxes for financial statement purposes. The following table accounts for federal net operating loss carryforwards only. SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2020 $ 590,000 2040 2019 260,000 2039 2018 160,000 2038 2017 140,000 2037 2016 1,640,000 2036 2015 3,400,000 2035 2014 5,230,000 2034 2013 5,600,000 2033 2012 2,850,000 2032 2011 2,427,000 2031 2010 1,799,000 2030 2009 1,750,000 2029 2008 1,308,000 2028 2007 429,000 2027 2006 476,000 2026 2005 414,000 2025 Taiwan (Republic of China) Corporate Tax Sole-Vision Technologies, Inc. is a subsidiary of the Company which is operating in Taiwan as a profit-seeking enterprise. Its applicable corporate income tax rate is 17%. In addition, Taiwan’s corporate tax system allows the government to levy a 10% profit retention tax on undistributed earnings for the prior year. This tax will not be provided if the company distributed the earnings before the ended of the fiscal year. According to the Taiwan corporate income tax (“TCIT”) reporting system, the TCIT sales cut-off base is concurrent with the business tax classified as value-added type (“VAT”) which will be reported to the Ministry of Finance (“MOF”) on a bi-monthly basis. Since the VAT and TCIT are accounted for on a VAT tax basis that recorded all sales on business tax on a VAT tax reporting system, the Company is bound to report the TCIT according to the MOF prescribed tax reporting rules. Under the VAT tax reporting system, sales cut-off did not take the accrual base but rather on a VAT taxable reporting basis. Therefore, when the company adopted US GAAP on accrual basis, the sales cut-off TCIT timing difference which derived from the VAT reporting system will create a temporary sales cut-off timing difference and this difference is reflected in the deferred tax assets or liabilities calculations. | NOTE 7 INCOME TAXES U.S. Federal Corporate Income Tax Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2019 Tax Operating Loss Carryforward - USA $ 9,800,000 $ 9,600,000 Other - - Valuation Allowance - USA (9,800,000 ) (9,600,000 ) $ - $ - The valuation allowance increased approximately $ 2.1 As of December 31, 2020, we had federal net operating loss carryforwards for income tax purposes of approximately $ 28.0 which will begin to expire in 2025 2.8 which only carryforward for five years SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2020 $ 590,000 2040 2019 260,000 2039 2018 160,000 2038 2017 140,000 2037 2016 1,640,000 2036 2015 3,400,000 2035 2014 5,230,000 2034 2013 5,600,000 2033 2012 2,850,000 2032 2011 2,427,000 2031 2010 1,799,000 2030 2009 1,750,000 2029 2008 1,308,000 2028 2007 429,000 2027 2006 476,000 2026 2005 414,000 2025 Taiwan (Republic of China) Corporate Tax Sole-Vision Technologies, Inc. is a subsidiary of the Company which is operating in Taiwan as a profit-seeking enterprise. Its applicable corporate income tax rate is 17%. In addition, Taiwan’s corporate tax system allows the government to levy a 10% profit retention tax on undistributed earnings for the prior year. This tax will not be provided if the company distributed the earnings before the ended of the fiscal year. According to the Taiwan corporate income tax (“TCIT”) reporting system, the TCIT sales cut-off base is concurrent with the business tax classified as value-added type (“VAT”) which will be reported to the Ministry of Finance (“MOF”) on a bi-monthly basis. Since the VAT and TCIT are accounted for on a VAT tax basis that recorded all sales on business tax on a VAT tax reporting system, the Company is bound to report the TCIT according to the MOF prescribed tax reporting rules. Under the VAT tax reporting system, sales cut-off did not take the accrual base but rather on a VAT taxable reporting basis. Therefore, when the company adopted US GAAP on accrual basis, the sales cut-off TCIT timing difference which derived from the VAT reporting system will create a temporary sales cut-off timing difference and this difference is reflected in the deferred tax assets or liabilities calculations. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
EARNINGS (LOSS) PER SHARE | NOTE 8 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, 2020 and 2019 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 periods ended September 30, 2021 and 2020. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED September 30, September 30, (Unaudited) (Unaudited) Basic EPS Net Loss $ (1,775,728 ) $ (1,185,493 ) Weighted Average Shares 69,581,603 51,401,395 Basic Loss Per Share $ (0.03 ) $ (0.02 ) | NOTE 8 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, 2020 and 2019 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 years ended December 31, 2020 and 2019. Total common stock equivalents that could be convertible into common stock were 11,966,234 12,304,709 SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED 2020 2019 Basic EPS Net Loss $ (1,602,303 ) $ (1,154,808 ) Weighted Average Shares 51,718,895 50,693,726 Basic Loss Per Share $ (0.03 ) $ (0.02 ) |
CONTINGENT LIABILITIES_TAIWAN
CONTINGENT LIABILITIES—TAIWAN | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
CONTINGENT LIABILITIES—TAIWAN | NOTE 9 CONTINGENT LIABILITIES—TAIWAN Pursuant to certain contracts with Siemens, Chung-Hsin Electric and Machinery Manufacturing Corp, MEGAsys is required to provide after-project services. If MEGAsys fails to provide these after-project services in the future, other parties of the related contract would have recourse. The financial exposure to MEGAsys in the event of failure to provide after- project services in the future as of September 30, 2021 is $ 61,435 . | NOTE 9 CONTINGENT LIABILITIES—TAIWAN Pursuant to certain contracts with New Taipei City, TECO Electric and Machinery Co., Ltd, and the Taiwan Stock Exchange Information Center, MEGAsys is required to provide after-project services. If MEGAsys fails to provide these after-project services in the future, other parties of the related contract would have recourse. The financial exposure to MEGAsys in the event of failure to provide after- project services in the future as of December 31, 2020 is $ 0 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | NOTE 10 SUBSEQUENT EVENTS From October 1, 2021 to November 8, 2021, short-term debenture holders converted $ 110,000 principal and $ 22,809 accrued interest into 384,454 shares of common stock, we sold 756,000 shares of unregistered restricted common stock at $ 0.75 for $ 567,000 of proceeds and a warrant to purchase 270,000 shares of common stock at $ 0.35 was exercised for $ 94,500 . | NOTE 10 SUBSEQUENT EVENTS On February 5, 2021, Wolverine Flagship Fund Trading Limited converted 117.372 10,000 0.35 3,353,486 During 2021 the company raised $ 1,508,000 During 2021 debenture holders converted $ 439,750 125,376 On June 30, 2021 the company issued common stock to pay Series B Preferred shareholders $ 455,926 0.35 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Nature of Operations | Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance system and IoT (Internet of Things) devices and platforms. Our evolution is in response to digital transformation demands from many cities and organizations across the globe. Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video surveillance systems. IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management systems (VMS). IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements. AI Functions ● Object Search ● Face Search (No Database Required) ● Face Recognition (from a Database) ● License Plate Recognition (100+ Countries), includes make and model ● Intrusion Detection ● Weapon Detection ● Fire Detection ● People Counting ● Vehicle Counting ● Temperature Detection ● Public Health Analytics (Facemask Detection, ● QR and Barcode Detection Key Features ● Live Camera View ● Live Tracking ● Abnormality Detection – Vehicle/Person wrong direction detection ● Vehicle/Person Loitering Detection ● Fall Detection ● Illegal Parking Detection ● Heatmap Generation IvedaAI consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level or data center for centralized cloud model. We combined hardware and artificial intelligence software for fast and efficient video search for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera. IvedaAI works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across dozens to thousands of cameras in less than 1 second. IvedaAI products are designed to maximize efficiency, save time, and cut cost. Instead of watching hours of video recording after-the-fact, users can set up alerts. Iveda offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and patient/elder care. Our gateway and station serve as the main hub for sensors and devices in any given area. They are equipped with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB. They connect to the Internet via Ethernet or cellular data network. We provide IoT platforms that enable centralized device management and push digital services on a massive scale. Our smart devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices. We also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects. Our smart power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software for monitoring and control purposes. This line of product includes smart power, water meter, smart lighting controls systems, and smart payment system. Iveda’s Cerebro manages all the components of our smart power technology including statistics on energy consumption. Cerebro is a software platform designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive user interface. Cerebro’s roadmap includes dashboard for all of Iveda’s platforms for central management of all devices. Cerebro is system agnostic and will support cross-platform interoperability. The common unified user interface will allow remote control of platforms, sensors and subsystems throughout an entire environment. This integration and unification of all subsystems enable acquisition and analysis of all information on one central command center, allowing comprehensive, effective, and overall management and protection of a city. In the last few years, smart city has been a hot topic among cities across the globe. With little to no human interaction, technology increases efficiency, expedites decision making, and reduces response time. Dwindling public safety budgets and resources has necessitated the transformation. More and more municipalities are using next-generation technologies to improve the safety and security of its citizens. Our response is our complete suite of IoT technologies, including AI intelligent video search technology, smart sensors, tracking devices, video surveillance systems, and smart power. Historically, we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and marketing. We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety of businesses and organizations. While we only used off-the shelf camera systems from well-known camera brands, we now source our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs. We now have the capability to provide IP cameras and NVRs based on customer specifications. We still utilize ONVIF (Open Network Video Interface Forum) cameras which is a global standard for the interface of IP-based physical security products. In 2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers such as telecommunications companies, integrators and other technology resellers already providing services to an existing customer base. Partnering with service providers that have an existing loyal subscriber base allows us to focus on servicing just a handful of our partners and concentrating on our technology offering. Service providers leverage their end-user infrastructure to sell, bill, and provide customer service for Iveda’s product offering. This business model provides dual revenue streams – one from hardware sales and the other from monthly licensing fees. MEGAsys ® | Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that provide true intelligence to any video surveillance system and IoT (Internet of Things) devices and platforms. Our evolution is in response to digital transformation demands from many cities and organizations across the globe. Our IvedaAI intelligent video search technology adds critical intelligence to normally passive video surveillance systems. IvedaAI provides AI functions to any IP camera and most popular network video recorders (NVR) and video management systems (VMS). IvedaAI comes with an appliance or server, preconfigured with multiple AI functions based on the end user requirements. AI Functions ● Object Search ● Face Search (No Database Required) ● Face Recognition (from a Database) ● License Plate Recognition (100+ Countries), includes make and model ● Intrusion Detection ● Weapon Detection ● Fire Detection ● People Counting ● Vehicle Counting ● Temperature Detection ● Public Health Analytics (Facemask Detection, ● QR and Barcode Detection Key Features ● Live Camera View ● Live Tracking ● Abnormality Detection – Vehicle/Person wrong direction detection ● Vehicle/Person Loitering Detection ● Fall Detection ● Illegal Parking Detection ● Heatmap Generation IvedaAI consists of deep-learning video analytics software running in a computer/server environment that can either be deployed at an edge level or data center for centralized cloud model. We combined hardware and artificial intelligence software for fast and efficient video search for objects stored in an external (NVR) or storage device and live streaming video data from any IP camera. IvedaAI works with any ONVIF-compliant IP cameras and most popular NVR/VMS (Video Management System) platforms, enabling accurate search across dozens to thousands of cameras in less than 1 second. IvedaAI products are designed to maximize efficiency, save time, and cut cost. Instead of watching hours of video recording after-the-fact, users can set up alerts. Iveda offers many IoT sensors and devices for various applications such as energy management, smart home, smart building, smart community and patient/elder care. Our gateway and station serve as the main hub for sensors and devices in any given area. They are equipped with high-level communication protocols such as Zigbee, WiFi, Bluetooth, and USB. They connect to the Internet via Ethernet or cellular data network. We provide IoT platforms that enable centralized device management and push digital services on a massive scale. Our smart devices include water sensor, environment sensor, entry sensor, smart plug, siren, body temperature pad, care watch and tracking devices. We also offer smart power technology for office buildings, schools, shopping centers, hotels, hospitals, and smart city projects. Our smart power hardware is equipped with an RS485 communication interface allowing the meters to be connected to various third-party SCADA software for monitoring and control purposes. This line of product includes smart power, water meter, smart lighting controls systems, and smart payment system. Iveda’s Cerebro manages all the components of our smart power technology including statistics on energy consumption. Cerebro is a software platform designed to integrate multiple unconnected energy, security and safety applications and devices and control them through one comprehensive user interface. Cerebro’s roadmap includes dashboard for all of Iveda’s platforms for central management of all devices. Cerebro is system agnostic and will support cross-platform interoperability. The common unified user interface will allow remote control of platforms, sensors and subsystems throughout an entire environment. This integration and unification of all subsystems enable acquisition and analysis of all information on one central command center, allowing comprehensive, effective, and overall management and protection of a city. In the last few years, smart city has been a hot topic among cities across the globe. With little to no human interaction, technology increases efficiency, expedites decision making, and reduces response time. Dwindling public safety budgets and resources has necessitated the transformation. More and more municipalities are using next-generation technologies to improve the safety and security of its citizens. Our response is our complete suite of IoT technologies, including AI intelligent video search technology, smart sensors, tracking devices, video surveillance systems, and smart power. Historically, we sold and installed video surveillance equipment, primarily for security purposes and secondarily for operational efficiencies and marketing. We also provided video hosting, in-vehicle streaming video, archiving, and real-time remote surveillance services to a variety of businesses and organizations. While we only used off-the shelf camera systems from well-known camera brands, we now source our own cameras using manufacturers in Taiwan in order for us to be more flexible in fulfilling our customer needs. We now have the capability to provide IP cameras and NVRs based on customer specifications. We still utilize ONVIF (Open Network Video Interface Forum) cameras which is a global standard for the interface of IP-based physical security products. In 2014, we changed our revenue model from direct project-based sales to licensing our platform and selling IoT hardware to service providers such as telecommunications companies, integrators and other technology resellers already providing services to an existing customer base. Partnering with service providers that have an existing loyal subscriber base allows us to focus on servicing just a handful of our partners and concentrating on our technology offering. Service providers leverage their end-user infrastructure to sell, bill, and provide customer service for Iveda’s product offering. This business model provides dual revenue streams – one from hardware sales and the other from monthly licensing fees. MEGAsys®, our subsidiary in Taiwan, specializes in deploying new, and integrating existing, video surveillance systems for airports, commercial buildings, government customers, data centers, shopping centers, hotels, banks, and Safe City. MEGAsys combines security surveillance products, software, and services to provide integrated security solutions to the end user. Through MEGAsys, we have access not only to Asian markets but also to Asian manufacturers and engineering expertise. MEGAsys is our research and development arm, working with a team of developers in Taiwan. |
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. | 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 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. We generated accumulated losses of approximately $ 38 million from January 2005 through December 31, 2020 and have insufficient working capital and cash flows to support operations. These factors raise substantial doubt about our ability to continue as a going concern. The 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. | Going Concern The accompanying 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. We generated accumulated losses of approximately $ 38 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We have a significant amount of property and equipment, consisting primarily of leased equipment. We review the recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. We did no t make any impairment for the nine months ended September 30, 2021 or the years ended December 31, 2020 and 2019. | Impairment of Long-Lived Assets We have a minimal amount of property and equipment, consisting primarily of leased equipment. We review the recoverability of the carrying value of long-lived assets using the methodology prescribed in ASC 360 “Property, Plant and Equipment.” We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net operating cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. We did not make any impairment for the years ended December 31, 2020 and 2019. |
Basis of Accounting | Basis of Accounting Our consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. | Basis of Accounting Our consolidated financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Revenue and Expense Recognition | Revenue and Expense Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services primarily to municipalities and commercial customers in the following manner: ● The majority of MEGAsys sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the equipment is shipped to the end customer and charged for service when installation or maintenance work is performed. Revenues from fixed-price equipment installation contracts (project sales) are recognized on the percentage-of-completion method. The percentage completed is measured by the percentage of costs incurred to date to estimated total costs for each contract. This method is used because management considers expended costs to be the best available measure of progress on these contracts. Because of inherent uncertainties in estimating costs and revenues, it is at least reasonably possible that the estimates used will change. Contract costs include all direct material, subcontractors, labor costs, and equipment costs and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenues when their realization is reasonably assured. Claims are included in revenues when realization is probable and the amount can be reliably estimated. ● The majority of Iveda US hardware sales are to international customers and are made through independent distributors or integrators who purchase products from the Company at a wholesale price and sell to the end user (typically municipalities or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor or integrator generally maintains product inventory or product is drop shipped from the manufacturer, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor or as directed by the distributor consistent with the terms of the distribution agreement. ● Iveda US also sells software that include licensing fees that are paid either monthly or yearly. The revenues are recorded monthly, if the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective time period. | Revenue and Expense Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services primarily to municipalities and commercial customers in the following manner: ● The majority of MEGAsys sales are project sales to Taiwan customers and are made direct to the end customer (typically a municipality or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the equipment is shipped to the end customer and charged for service when installation or maintenance work is performed. Revenues from fixed-price equipment installation contracts (project sales) are recognized on the percentage-of-completion method. The percentage completed is measured by the percentage of costs incurred to date to estimated total costs for each contract. This method is used because management considers expended costs to be the best available measure of progress on these contracts. Because of inherent uncertainties in estimating costs and revenues, it is at least reasonably possible that the estimates used will change. Contract costs include all direct material, subcontractors, labor costs, and equipment costs and those indirect costs related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Changes in estimated job profitability resulting from job performance, job conditions, contract penalty provisions, claims, change orders, and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenues when their realization is reasonably assured. Claims are included in revenues when realization is probable, and the amount can be reliably estimated. ● The majority of Iveda US hardware sales are to international customers and are made through independent distributors or integrators who purchase products from the Company at a wholesale price and sell to the end user (typically municipalities or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor or integrator generally maintains product inventory or product is drop shipped from the manufacturer, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor or as directed by the distributor consistent with the terms of the distribution agreement. ● Iveda US also sells software that include licensing fees that are paid either monthly or yearly. The revenues are recorded monthly, if the license is paid yearly the revenue will be recorded as deferred revenue and amortized on a straight-line basis over the respective time period. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Our current component of other comprehensive income is the foreign currency translation adjustment. | Comprehensive Loss Comprehensive loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Our current component of other comprehensive income is the foreign currency translation adjustment. |
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 FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 million. At times, amounts on deposit in Taiwan may be in excess of the CDIC Insurance limit. Accounts receivables 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. Two customers represented approximately 40% and 77% of total accounts receivable of $ 76,063 and $ 226,614 as of September 30, 2021 and December 31, 2020, respectively. These customers are longtime customers, and we don’t expect any problem with collectability of these accounts receivable. We had revenue from one customer with greater than 10% of total revenues during the nine months ended September 30, 2021 that represented approximately 25% of total revenues. We had $ 219,222 revenues ( 25% ) from Chunghwa Telecom. We had revenue from two customers with greater than 10% of total revenues during 2020 that represented approximately 39% of total revenues. We had $ 414,415 revenues ( 28% ) from Chunghwa Telecom and $ 159,048 revenues ( 11% ) from Siemens . No other customers represented greater than 10% of total revenues in nine months ended September 30, 2021 and 2020. | 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 three financial institutions, two in the United States and one in Taiwan. At times, amounts on deposit in the United States may be in excess of the FDIC insurance limit. Deposits in Taiwan financial institutions are insured by CDIC (Central Deposit Insurance Corporation) with maximum coverage of NTD 3 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. Two customers represented approximately 77% 83% 226,614 895,769 We had revenue from two customers with greater than 10% of total revenues during 2020 that represented approximately 39% 414,415 28% 159,048 11% We had revenue from three customers with greater than 10% of total revenues during 2019 that represented approximately 76% 1,986,534 54% 389,888 11% 400,065 11% No other customers represented greater than 10% of total revenues in 2020 and 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | Cash and Cash Equivalents For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For our U.S.-based segment, receivables past due more than 120 days are considered delinquent. For our Taiwan-based segment, receivables over one year are considered delinquent. Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer. As of September 30, 2021 and December 31, 2020, respectively, an allowance for uncollectible accounts of $ 0 and $ 0 was deemed necessary for our U.S.-based segment. | Accounts Receivable We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For our U.S.-based segment, receivables past due more than 120 days are considered delinquent. For our Taiwan-based segment, receivables over one year are considered delinquent. Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer. As of December 31, 2020 and 2019, respectively, an allowance for uncollectible accounts of $ 0 0 3,380 3,172 Trade receivables, net are comprised of the following: SCHEDULE OF TRADE RECEIVABLES 2020 2019 Trade receivables, gross $ 229,994 $ 898,941 Allowance for doubtful accounts (3,380 ) (3,172 ) Trade receivables, net $ 226,614 $ 895,769 Other current assets are comprised of the following: SCHEDULE OF OTHER CURRENT ASSESTS 2020 2019 Notes receivables $ - $ 115,305 Deposits-current 104,617 68,992 Advance to suppliers 3,832 531 Prepaid expenses and other current assets 13,652 27,095 Other current assets $ 122,101 $ 211,923 |
Deposits – Current | Deposits – Current Our current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for new proposed projects. | Deposits – Current Our current deposits represent tender deposits placed with local governments and major customers in Taiwan during the bidding process for new proposed projects. |
Other Current Assets | Other Current Assets Other current assets represent cash paid in advance to insurance companies and vendors for service coverage extending into subsequent periods. | Other Current Assets Other current assets represent cash paid in advance to insurance companies and vendors for service coverage extending into subsequent periods. |
Inventories | Inventories We review our inventories for excess or obsolete products or components based on an analysis of historical usage and an evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. The allowance for slow-moving and obsolete inventory is $ 0 and $ 0 , as of September 30, 2021 and December 31, 2020, respectively. | Inventories We review our inventories for excess or obsolete products or components based on an analysis of historical usage and an evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. The allowance for slow-moving and obsolete inventory is $ 11,228 10,508 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the nine months ended September 30, 2021 and September 30, 2020 was $ 10,482 and $ 5,000 , respectively. | Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the years ended December 31, 2020 and 2019 was $ 5,695 5,804 |
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 of nine months to ten years . Other intangible assets and trademarks are fully amortized at September 30, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 2022 - Total $ 6,666 | 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 of six months to ten years. Other intangible assets are fully amortized at December 31, 2020. Future amortization of trademarks is as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS - 2021 $ 6,666 Total $ 6,666 |
Other Assets | Other Assets Other assets are comprised of the following: SCHEDULE OF OTHER ASSETS COMPRISED As of December 31, 2020 2019 Deposits-long-term $ 60,476 $ 41,234 Deferred tax assets $ 171,148 $ 160,653 Deferred finance costs $ - $ - Other assets $ 162,381 $ 364,320 | |
Deposits—Long-Term | Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of MEGAsys’ office space, and tender deposits placed with local governments and major customers in Taiwan as part of the bidding process, which are anticipated to be held more than one year if the bid is accepted. | Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of MEGAsys’ office space, and tender deposits placed with local governments and major customers in Taiwan as part of the bidding process, which are anticipated to be held more than one year if the bid is accepted. |
Income Taxes | Income Taxes Deferred income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax assets that, more likely than not, will be realized. Income tax expense is the tax payable for the year and the change during the year in deferred tax assets and liabilities. During 2020, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2020. We are subject to U.S. federal income tax as well as state income tax. Our U.S. income tax returns are subject to review and examination by federal, state, and local authorities. Our U.S. tax returns for the years 2016 to 2020 are open to examination by federal, local, and state authorities. Our Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance. Our Taiwan tax return for the years 2016 to 2020 are open to examination by the Taiwan Ministry of Finance. | Income Taxes Deferred income taxes are recognized in the consolidated financial statements for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates. Temporary differences arise from sales cut-off, depreciation, deferred rent expense, and net operating losses. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that represents our best estimate of such deferred tax assets that, more likely than not, will be realized. Income tax expense is the tax payable for the year and the change during the year in deferred tax assets and liabilities. During 2020, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2020. We are subject to U.S. federal income tax as well as state income tax. Our U.S. income tax returns are subject to review and examination by federal, state, and local authorities. Our U.S. tax returns for the years 2015 to 2019 are open to examination by federal, local, and state authorities. Our Taiwan tax returns are subject to review and examination by the Taiwan Ministry of Finance. Our Taiwan tax return for the years 2015 to 2019 are open to examination by the Taiwan Ministry of Finance. |
Restricted Cash | Restricted Cash Restricted cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment. | Restricted Cash Restricted cash represents time deposits on account to secure short-term bank loans in our Taiwan-based segment. |
Accounts and Other Payables | Accounts and Other Payables SCHEDULE OF ACCOUNTS AND OTHER PAYABLES September 30, 2021 December 31, 2020 (Unaudited) Accounts Payable $ 473,977 $ 405,819 Accrued Expenses 2,774,214 2,751,127 Deferred Revenue and Customer Deposits 104,983 864 Accounts and Other Payables $ 3,353,174 $ 3,157,810 | Accounts and Other Payables Accounts and other payables are comprised of the following: SCHEDULE OF ACCOUNTS AND OTHER PAYABLES 2020 2019 Accounts Payable $ 405,819 $ 521,540 Accrued Expenses 2,751,127 2,472,617 Deferred Revenue 864 4,151 Accounts and Other Payables $ 3,157,810 $ 2,998,308 |
Deferred Revenue | Deferred Revenue Advance payments received from customers on future installation projects are recorded as deferred revenue. | Deferred Revenue Advance payments received from customers on future installation projects are recorded as deferred revenue. |
Stock-Based Compensation | Stock-Based Compensation On January 1, 2006, we adopted the fair value recognition provisions of ASC 718, “Share-Based Payment,” which requires the recognition of an expense related to the fair value of stock-based compensation awards. We elected the modified prospective transition method as permitted by ASC 718. Under this transition method, stock-based compensation expense includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718. We recognize stock-based compensation expense on a straight-line basis over the requisite service period of the award. The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2020 and 2019, were estimated using the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.” Therefore, no compensation expense is recognized for these awards in accordance with ASC 718. We recognized $ 165,167 and $ 95,167 of stock-based compensation expense for the years ended December 31, 2020 and 2019, respectively and $ 88,000 for the nine months ended September 30, 2021. | Stock-Based Compensation On January 1, 2006, we adopted the fair value recognition provisions of ASC 718, “Share-Based Payment,” which requires the recognition of an expense related to the fair value of stock-based compensation awards. We elected the modified prospective transition method as permitted by ASC 718. Under this transition method, stock-based compensation expense includes compensation expense for stock-based compensation granted on or after the date ASC 718 was adopted based on the grant-date fair value estimated in accordance with the provisions of ASC 718. We recognize stock-based compensation expense on a straight-line basis over the requisite service period of the award. The fair value of stock-based compensation awards granted prior to, but not yet vested as of December 31, 2020 and 2019, were estimated using the “minimum value method” as prescribed by original provisions of ASC 718, “Accounting for Stock-Based Compensation.” Therefore, no compensation expense is recognized for these awards in accordance with ASC 718. We recognized $ 165,167 95,167 |
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, 2021 and December 31, 2020. The respective carrying values of certain on-balance-sheet financial instruments approximate their fair values. These financial instruments include cash, accounts receivable, 0 payable, accrued expenses, and amounts due to related parties. Fair values were assumed to approximate carrying values for these financial instruments because they are short-term in nature and their carrying amounts approximate their fair values or because they are receivable or payable on demand. | Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of December 31, 2020 and 2019. 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 they are short-term in nature and their carrying amounts approximate their fair values or because they are receivable or payable on demand. |
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 business conducted and the customer bases located in the United States. The net revenues and net assets (liabilities) for other significant geographic regions are as follows: SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS September 30, 2021 Net Revenue Net Assets United States $ 59,200 $ (2,404,401 ) Republic of China (Taiwan) $ 1,245,525 $ 710,225 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. | 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 business conducted and the customer bases located in the United States. The net revenues and net assets (liabilities) for other significant geographic regions are as follows: SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS December 31, 2020 Net Revenue Net Assets (Liabilities) United States $ 435,608 $ (4,375,933 ) Republic of China (Taiwan) $ 1,048,627 $ 669,365 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 Solutions, Inc., 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. SCHEDULE OF REPORTING SEGMENTS Year Ended Year Ended Condensed Dec. 31, 2020 Dec. 31, 2020 Consolidated Iveda MEGAsys Total Revenue $ 435,608 $ 1,048,627 $ 1,484,235 Cost of Revenue 381,924 609,634 991,558 Gross Profit 53,684 438,993 492,677 Depreciation and Amortization 20,000 5,695 25,695 General and Administrative 1,176,860 518,865 1,695,725 Gain (Loss) from Operations (1,143,176 ) (85,567 ) (1,228,743 ) Foreign Currency Gain - - - Other Misc Income 24,282 24,282 Gain on Disposal of Assets, Net - Interest Income - 914 914 Interest Expense (396,348 ) (2,408 ) (398,756 ) Gain (Loss) Before Income Taxes (1,539,524 ) (62,779 ) (1,602,303 ) Benefit (Provision) for Income Taxes - - Net Income (Loss) $ (1,539,524 ) $ (62,779 ) $ (1,602,303 ) Revenues as shown below represent sales to external customers for each segment. Intercompany revenues have been eliminated and are immaterial. 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. SCHEDULE OF REVENUES,LONG-LIVED ASSETS, INVENTORY AND PROPERTY AND EQUIPMENT FOR OPERATING SEGMENTS December 31, 2020 2019 Revenue United States $ 435,608 $ 178,886 Republic of China (Taiwan) 1,069,926 3,461,910 Elimination of intersegment revenues (21,299 ) - Revenues $ 1,484,235 $ 3,640,796 December 31, 2020 2019 Operating Earnings (Loss) United States $ (1,539,524 ) $ (1,331,274 ) Republic of China (Taiwan) (62,779 ) 193,086 Operating Earnings (Loss) $ (1,602,303 ) $ (1,138,188 ) December 31, 2020 2019 Property and Equipment, Net United States $ 0 $ 0 Republic of China (Taiwan) 22,027 5,807 Property and Equipment, Net $ 22,027 $ 5,807 December 31, 2020 2019 Additions to (Deletions from) Long-Lived Assets United States $ - Republic of China (Taiwan) 21,915 1,496 Additions to (Deletions from) Long-Lived Assets $ 21,915 $ 1,496 December 31, 2020 2019 Inventory United States $ - $ - Republic of China (Taiwan) 221,868 132,747 Inventory $ 221,868 $ 132,747 December 31, 2020 2019 Total Assets United States $ 40,141 $ 130,394 Republic of China (Taiwan) 1,205,425 1,773,906 Total Assets $ 1,245,566 $ 1,904,300 |
Reclassification | Reclassification Certain amounts in 2020 have been reclassified to conform to the 2021 presentation. | Reclassification Certain amounts in 2019 have been reclassified to conform to the 2020 presentation. |
New Accounting Standards | New Accounting Standards No new relevant accounting standards | New Accounting Standards No new relevant standards |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF TRADE RECEIVABLES | Trade receivables, net are comprised of the following: SCHEDULE OF TRADE RECEIVABLES 2020 2019 Trade receivables, gross $ 229,994 $ 898,941 Allowance for doubtful accounts (3,380 ) (3,172 ) Trade receivables, net $ 226,614 $ 895,769 | |
SCHEDULE OF OTHER CURRENT ASSESTS | Other current assets are comprised of the following: SCHEDULE OF OTHER CURRENT ASSESTS 2020 2019 Notes receivables $ - $ 115,305 Deposits-current 104,617 68,992 Advance to suppliers 3,832 531 Prepaid expenses and other current assets 13,652 27,095 Other current assets $ 122,101 $ 211,923 | |
SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS | SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 2022 - Total $ 6,666 | SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS - 2021 $ 6,666 Total $ 6,666 |
SCHEDULE OF OTHER ASSETS COMPRISED | Other assets are comprised of the following: SCHEDULE OF OTHER ASSETS COMPRISED As of December 31, 2020 2019 Deposits-long-term $ 60,476 $ 41,234 Deferred tax assets $ 171,148 $ 160,653 Deferred finance costs $ - $ - Other assets $ 162,381 $ 364,320 | |
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES | SCHEDULE OF ACCOUNTS AND OTHER PAYABLES September 30, 2021 December 31, 2020 (Unaudited) Accounts Payable $ 473,977 $ 405,819 Accrued Expenses 2,774,214 2,751,127 Deferred Revenue and Customer Deposits 104,983 864 Accounts and Other Payables $ 3,353,174 $ 3,157,810 | Accounts and other payables are comprised of the following: SCHEDULE OF ACCOUNTS AND OTHER PAYABLES 2020 2019 Accounts Payable $ 405,819 $ 521,540 Accrued Expenses 2,751,127 2,472,617 Deferred Revenue 864 4,151 Accounts and Other Payables $ 3,157,810 $ 2,998,308 |
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS | SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS September 30, 2021 Net Revenue Net Assets United States $ 59,200 $ (2,404,401 ) Republic of China (Taiwan) $ 1,245,525 $ 710,225 | SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS December 31, 2020 Net Revenue Net Assets (Liabilities) United States $ 435,608 $ (4,375,933 ) Republic of China (Taiwan) $ 1,048,627 $ 669,365 |
SCHEDULE OF REPORTING SEGMENTS | SCHEDULE OF REPORTING SEGMENTS Year Ended Year Ended Condensed Dec. 31, 2020 Dec. 31, 2020 Consolidated Iveda MEGAsys Total Revenue $ 435,608 $ 1,048,627 $ 1,484,235 Cost of Revenue 381,924 609,634 991,558 Gross Profit 53,684 438,993 492,677 Depreciation and Amortization 20,000 5,695 25,695 General and Administrative 1,176,860 518,865 1,695,725 Gain (Loss) from Operations (1,143,176 ) (85,567 ) (1,228,743 ) Foreign Currency Gain - - - Other Misc Income 24,282 24,282 Gain on Disposal of Assets, Net - Interest Income - 914 914 Interest Expense (396,348 ) (2,408 ) (398,756 ) Gain (Loss) Before Income Taxes (1,539,524 ) (62,779 ) (1,602,303 ) Benefit (Provision) for Income Taxes - - Net Income (Loss) $ (1,539,524 ) $ (62,779 ) $ (1,602,303 ) | |
SCHEDULE OF REVENUES,LONG-LIVED ASSETS, INVENTORY 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. SCHEDULE OF REVENUES,LONG-LIVED ASSETS, INVENTORY AND PROPERTY AND EQUIPMENT FOR OPERATING SEGMENTS December 31, 2020 2019 Revenue United States $ 435,608 $ 178,886 Republic of China (Taiwan) 1,069,926 3,461,910 Elimination of intersegment revenues (21,299 ) - Revenues $ 1,484,235 $ 3,640,796 December 31, 2020 2019 Operating Earnings (Loss) United States $ (1,539,524 ) $ (1,331,274 ) Republic of China (Taiwan) (62,779 ) 193,086 Operating Earnings (Loss) $ (1,602,303 ) $ (1,138,188 ) December 31, 2020 2019 Property and Equipment, Net United States $ 0 $ 0 Republic of China (Taiwan) 22,027 5,807 Property and Equipment, Net $ 22,027 $ 5,807 December 31, 2020 2019 Additions to (Deletions from) Long-Lived Assets United States $ - Republic of China (Taiwan) 21,915 1,496 Additions to (Deletions from) Long-Lived Assets $ 21,915 $ 1,496 December 31, 2020 2019 Inventory United States $ - $ - Republic of China (Taiwan) 221,868 132,747 Inventory $ 221,868 $ 132,747 December 31, 2020 2019 Total Assets United States $ 40,141 $ 130,394 Republic of China (Taiwan) 1,205,425 1,773,906 Total Assets $ 1,245,566 $ 1,904,300 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF RELATED PARTY TRANSACTIONS | SCHEDULE OF RELATED PARTY TRANSACTIONS September 30, 2021 December 31, 2020 (Unaudited) During 2020 one of the three MEGAsys directors loaned money to MEGAsys at no interest. - 37,711 On October 18, 2018, we entered into a debenture agreement for $ 50,000 with Quadrant International LLC (four partners, three of which are related parties) at 0.0% interest per annum with interest and principal payable on the maturity date of December 31, 2019 . - 45,534 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. *No longer a Director - 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 purchase 10,000 shares of our common stock with an exercise price of $ 0.77 per share. *No longer a Director - 100,000 * On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, formerly 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 December 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 exercise price of $ 0.77 per share. This debenture was extended to December 31, 2016 . Mr. Omi is currently the CTO of the company. 200,000 200,000 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 exercise price of $ 0.77 per share This debenture was extended to December 31, 2016 $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 $ 300,000 512,711 Less Current Portion (300,000 ) (512,711 ) Less: Debt Discount - - Total Long-Term $ - $ - | SCHEDULE OF RELATED PARTY TRANSACTIONS 2020 2019 During 2019 and 2020 MEGAsys received unsecured loans from one of its directors. These amounts represent the outstanding balance at yearend. $ 37,177 $ 63,861 On October 18, 2018, we entered into a debenture agreement for $ 50,000 0.0% December 31, 2019 45,534 50,000 On September 10, 2014, we entered into a debenture agreement with Mr. Alex Kuo, a member of the Board of Directors, for $ 30,000 9.5% December 31, 2015 3,000 0.77 30,000 30,000 On September 8, 2014, we entered into a debenture agreement with Mr. Kuo’s wife, Li-Min Hsu, for $ 100,000, 9.5% December 31, 2015 10,000 0.77 100,000 100,000 On August 28, 2014, we entered into a debenture agreement with Mr. Gregory Omi, who was a member of our Board of Directors of the company for $ 200,000 9.5% December 31, 2016 20,000 0.77 December 31, 2016 200,000 200,000 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 10% December 19, 2014 5,000 December 31, 2015 10,000 0.77 December 31, 2016 $ 100,000 $ 100,000 Total Due to Related Parties $ 512,711 $ 543,861 Less Current Portion (512,711 ) (543,861 ) Less: Debt Discount - - Total Long-Term $ - $ - |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
SCHEDULE OF SHORT-TERM DEBT | The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT September 30, 2021 December 31, 2020 (Unaudited) $ - $ 100,000 Unsecured loan from a shareholder in April 2018 for $ 100,000 at a 50% interest rate and six month maturity, was due October 2018 . principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. $ - $ 100,000 Note Payable to Siemens due December 31, 2021 at 0% interest. 82,486 Loan from Hua Nan Bank in 2020 at 2.42% interest rate per annum and due December 2021 , 2019 loan at 2.61% interest paid, February - April 2020 71,238 Debenture agreements with various shareholders at 10% interest rate beginning in February 2019 - December 2019, one year maturity, were due February 2020 – December 2020 , principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. 210,000 346,250 Debenture agreements with various shareholders at 10% - 20% interest rate beginning in January 2020 - February 2021, one year maturity, due January 2021 – February 2022 , principal and interest convertible at $ 0.35 per share into common stock at the option of the holder until repaid. 275,000 313,500 Short-term three month loan at 0% interest from a shareholder in June 2020 , was due September 2020 - 35,000 Balance at end of period $ 567,486 $ 865,988 | The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT December 31, 2020 December 31, 2019 Unsecured loan from a shareholder in April 2018 for $ 100,000 50% six month maturity, was due October 2018 0.35 $ 100,000 $ 100,000 Note Payable to Siemens due December 31, 2021 at 0% interest. 82,486 Loan from Hua Nan Bank in 2020 at 2.42% due June 2021 2.61% February - April 2020 71,238 267,478 Debenture agreements with various shareholders at 10% beginning in February 2019 - December 2019, one year maturity, was due February 2020 – December 2020 0.35 346,250 346,350 Debenture agreements with various shareholders at 10% 20% beginning in January 2020 - December 2020, one year maturity, due January 2021 – December 2021 0.35 313,500 - Short term three month loan at 0% September 2020 35,000 - Balance at end of period $ 865,988 $ 713,828 |
SCHEDULE OF LONG-TERM DEBT | The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT 115,865 - Loans from Shanghai Bank with interest rates 1.00% per annum due February 2024 115,865 - Current Portion of Long-term debt (47,944 ) - Balance at end of period $ 67,921 - | The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT 115,865 - Loans from Shanghai Bank with interest rates 1.00% per annum due February 2024 115,865 - Current Portion of Long-term debt (47,944 ) - Balance at end of period $ 67,921 - |
STOCK OPTION PLAN AND WARRANTS
STOCK OPTION PLAN AND WARRANTS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions during 2020 and 2019 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2020 2019 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 6,741,200 $ 0.78 6,046,200 $ 0.83 Granted 2,500,000 0.37 695,000 0.28 Exercised (1,270,000 ) 0.16 - - Forfeited or Canceled (355,000 ) 1.12 - - Outstanding at End of Year 7,616,200 0.73 6,741,200 0.78 Options Exercisable at Year-End 7,616,200 0.73 6,741,200 0.78 Weighted-Average Fair Value of Options Granted During the Year $ 0.25 $ 0.20 | Stock option transactions during 2020 and 2019 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2020 2019 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at Beginning of Year 6,741,200 $ 0.78 6,046,200 $ 0.83 Granted 2,500,000 0.37 695,000 0.28 Exercised (1,270,000 ) 0.16 - - Forfeited or Canceled (355,000 ) 1.12 - - Outstanding at End of Year 7,616,200 0.73 6,741,200 0.78 Options Exercisable at Year-End 7,616,200 0.73 6,741,200 0.78 Weighted-Average Fair Value of Options Granted During the Year $ 0.25 $ 0.20 |
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE | Information with respect to stock options outstanding and exercisable at December 31, 2020 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.04 - $ 1.75 7,616,200 5.7 $ 0.73 7,616,200 $ 0.73 | Information with respect to stock options outstanding and exercisable at December 31, 2020 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Exericse Prices Number Outstanding at December 31, 2020 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable at December 31, 2020 Weighted-Average Exercise Price $ 0.04 1.75 7,616,200 5.7 $ 0.73 7,616,200 $ 0.73 |
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. SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL 2020 2019 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 % 1.67 % | 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. SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL 2020 2019 Expected Life 5 5 Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 % 1.67 % |
SCHEDULE OF WARRANT TRANSACTIONS | Warrant transactions during 2020 and 2019 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2020 2019 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 5,563,509 $ 0.38 4,796,876 $ 0.40 Granted 989,856 0.35 1,335,178 0.35 Exercised - Forfeited or Canceled (2,203,331 ) 0.36 (568,545 ) 0.45 Outstanding at End of Year 4,350,034 0.38 5,563,509 0.38 Warrant Exercisable at Year-End 4,350,034 0.38 5,563,509 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.10 - $ 0.26 $ 0.00 - $ 0.22 | Warrant transactions during 2020 and 2019 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2020 2019 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at Beginning of Year 5,563,509 $ 0.38 4,796,876 $ 0.40 Granted 989,856 0.35 1,335,178 0.35 Exercised - Forfeited or Canceled (2,203,331 ) 0.36 (568,545 ) 0.45 Outstanding at End of Year 4,350,034 0.38 5,563,509 0.38 Warrant Exercisable at Year-End 4,350,034 0.38 5,563,509 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.10 0.26 $ 0.00 0.22 |
SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION | Information with respect to warrants outstanding and exercisable at December 31, 2020 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION Warrants Outstanding Warrants Exercisable Range of Number Outstanding at Weighted- Weighted- Number Exercisable at Weighted- $ 0.35 - $ 1.65 4,350,034 1.0 $ 0.38 4,350,034 $ 0.38 | Information with respect to warrants outstanding and exercisable at December 31, 2020 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION Warrants Outstanding Warrants Exercisable Range of Exericse Prices Number Outstanding at December 31, 2020 Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Number Exercisable at December 31, 2020 Weighted-Average Exercise Price $ 0.35 1.65 4,350,034 1.0 $ 0.38 4,350,034 $ 0.38 |
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE | The fair value of each warrant 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. SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE 2020 2019 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.19 - 1.59 % 1.74 - 2.47 % | The fair value of each warrant 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. SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE 2020 2019 Expected Life 1.5 1.5 Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.19 1.59 1.74 2.47 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2019 Tax Operating Loss Carryforward - USA $ 9,800,000 $ 9,600,000 Other - - Valuation Allowance - USA (9,800,000 ) (9,600,000 ) Deferred Tax Assets, Net $ - $ - | Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2020 2019 Tax Operating Loss Carryforward - USA $ 9,800,000 $ 9,600,000 Other - - Valuation Allowance - USA (9,800,000 ) (9,600,000 ) $ - $ - |
SUMMARY OF OPERATING LOSS CARRYFORWARDS | SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2020 $ 590,000 2040 2019 260,000 2039 2018 160,000 2038 2017 140,000 2037 2016 1,640,000 2036 2015 3,400,000 2035 2014 5,230,000 2034 2013 5,600,000 2033 2012 2,850,000 2032 2011 2,427,000 2031 2010 1,799,000 2030 2009 1,750,000 2029 2008 1,308,000 2028 2007 429,000 2027 2006 476,000 2026 2005 414,000 2025 | SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2020 $ 590,000 2040 2019 260,000 2039 2018 160,000 2038 2017 140,000 2037 2016 1,640,000 2036 2015 3,400,000 2035 2014 5,230,000 2034 2013 5,600,000 2033 2012 2,850,000 2032 2011 2,427,000 2031 2010 1,799,000 2030 2009 1,750,000 2029 2008 1,308,000 2028 2007 429,000 2027 2006 476,000 2026 2005 414,000 2025 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | 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, 2020 and 2019 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 periods ended September 30, 2021 and 2020. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED September 30, September 30, (Unaudited) (Unaudited) Basic EPS Net Loss $ (1,775,728 ) $ (1,185,493 ) Weighted Average Shares 69,581,603 51,401,395 Basic Loss Per Share $ (0.03 ) $ (0.02 ) | SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED 2020 2019 Basic EPS Net Loss $ (1,602,303 ) $ (1,154,808 ) Weighted Average Shares 51,718,895 50,693,726 Basic Loss Per Share $ (0.03 ) $ (0.02 ) |
SCHEDULE OF TRADE RECEIVABLES (
SCHEDULE OF TRADE RECEIVABLES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Trade receivables, gross | $ 229,994 | $ 898,941 |
Allowance for doubtful accounts | (3,380) | (3,172) |
Trade receivables, net | $ 226,614 | $ 895,769 |
SCHEDULE OF OTHER CURRENT ASSES
SCHEDULE OF OTHER CURRENT ASSESTS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Notes receivables | $ 115,305 | ||
Deposits-current | 104,617 | 68,992 | |
Advance to suppliers | 3,832 | 531 | |
Prepaid expenses and other current assets | 13,652 | 27,095 | |
Other current assets | $ 450,187 | $ 122,101 | $ 211,923 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Remainder of Fiscal Year | $ 6,666 | |
Year One | 6,666 | |
Total | $ 6,666 | $ 6,666 |
SCHEDULE OF OTHER ASSETS COMPRI
SCHEDULE OF OTHER ASSETS COMPRISED (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Deposits-long-term | $ 60,476 | $ 41,234 |
Deferred tax assets | 171,148 | 160,653 |
Deferred finance costs | ||
Other assets | $ 162,381 | $ 364,320 |
SCHEDULE OF ACCOUNTS AND OTHER
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Accounts Payable | $ 473,977 | $ 405,819 | $ 521,540 |
Accrued Expenses | 2,774,214 | 2,751,127 | 2,472,617 |
Deferred Revenue and Customer Deposits | 104,983 | 864 | 4,151 |
Accounts and Other Payables | $ 3,353,174 | $ 3,157,810 | $ 2,998,308 |
SCHEDULE OF NET REVENUE AND NET
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
UNITED STATES | ||
Net Revenue | $ 59,200 | $ 435,608 |
Net Assets (Liabilities) | (2,404,401) | (4,375,933) |
Republic Of China Taiwan [Member] | ||
Net Revenue | 1,245,525 | 1,048,627 |
Net Assets (Liabilities) | $ 710,225 | $ 669,365 |
SCHEDULE OF REPORTING SEGMENTS
SCHEDULE OF REPORTING SEGMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 411,452 | $ 278,238 | $ 1,304,725 | $ 1,164,640 | $ 1,484,235 | $ 3,640,796 |
Cost of Revenue | 136,887 | 447,248 | 781,895 | 1,007,321 | 991,558 | 2,624,461 |
Gross Profit | 274,565 | (169,010) | 522,830 | 157,319 | 492,677 | 1,016,335 |
Depreciation and Amortization | 17,148 | 10,000 | 25,695 | 25,803 | ||
General and Administrative | 1,695,725 | |||||
Gain (Loss) from Operations | (424,151) | (580,296) | (1,519,193) | (1,107,626) | (1,228,743) | (764,158) |
Foreign Currency Gain | ||||||
Other Misc Income | 24,282 | |||||
Gain on Disposal of Assets, Net | ||||||
Interest Income | 58 | 69 | 193 | 265 | 914 | 411 |
Interest Expense | (29,337) | (32,125) | (256,660) | (98,133) | (398,756) | (383,299) |
Gain (Loss) Before Income Taxes | (453,431) | (600,127) | (1,775,728) | (1,185,493) | (1,602,303) | (1,147,046) |
Benefit (Provision) for Income Taxes | (7,762) | |||||
Net Income (Loss) | $ (453,431) | $ (600,127) | $ (1,775,728) | $ (1,185,493) | (1,602,303) | $ (1,154,808) |
Iveda [Member] | ||||||
Revenue | 435,608 | |||||
Cost of Revenue | 381,924 | |||||
Gross Profit | 53,684 | |||||
Depreciation and Amortization | 20,000 | |||||
General and Administrative | 1,176,860 | |||||
Gain (Loss) from Operations | (1,143,176) | |||||
Foreign Currency Gain | ||||||
Interest Income | ||||||
Interest Expense | (396,348) | |||||
Gain (Loss) Before Income Taxes | (1,539,524) | |||||
Benefit (Provision) for Income Taxes | ||||||
Net Income (Loss) | (1,539,524) | |||||
Megasys [Member] | ||||||
Revenue | 1,048,627 | |||||
Cost of Revenue | 609,634 | |||||
Gross Profit | 438,993 | |||||
Depreciation and Amortization | 5,695 | |||||
General and Administrative | 518,865 | |||||
Gain (Loss) from Operations | (85,567) | |||||
Foreign Currency Gain | ||||||
Other Misc Income | 24,282 | |||||
Interest Income | 914 | |||||
Interest Expense | (2,408) | |||||
Gain (Loss) Before Income Taxes | (62,779) | |||||
Net Income (Loss) | $ (62,779) |
SCHEDULE OF REVENUES,LONG-LIVED
SCHEDULE OF REVENUES,LONG-LIVED ASSETS, INVENTORY AND PROPERTY AND EQUIPMENT FOR OPERATING SEGMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 411,452 | $ 278,238 | $ 1,304,725 | $ 1,164,640 | $ 1,484,235 | $ 3,640,796 |
Operating Earnings (Loss) | (424,151) | $ (580,296) | (1,519,193) | $ (1,107,626) | (1,228,743) | (764,158) |
Property and Equipment, Net | 28,897 | 28,897 | 22,027 | 5,807 | ||
Additions to (Deletions from) Long-Lived Assets | 21,915 | 1,496 | ||||
Inventory | 221,868 | 132,747 | ||||
Total Assets | $ 2,642,349 | $ 2,642,349 | 1,245,566 | 1,904,300 | ||
Loss From Operations [Member] | ||||||
Operating Earnings (Loss) | (1,602,303) | (1,138,188) | ||||
UNITED STATES | ||||||
Revenues | 435,608 | 178,886 | ||||
Property and Equipment, Net | 0 | 0 | ||||
Additions to (Deletions from) Long-Lived Assets | ||||||
Inventory | ||||||
Total Assets | 40,141 | 130,394 | ||||
UNITED STATES | Loss From Operations [Member] | ||||||
Operating Earnings (Loss) | (1,539,524) | (1,331,274) | ||||
CHINA | ||||||
Revenues | 1,069,926 | 3,461,910 | ||||
Property and Equipment, Net | 22,027 | 5,807 | ||||
Additions to (Deletions from) Long-Lived Assets | 21,915 | 1,496 | ||||
Inventory | 221,868 | 132,747 | ||||
Total Assets | 1,205,425 | 1,773,906 | ||||
CHINA | Loss From Operations [Member] | ||||||
Operating Earnings (Loss) | (62,779) | 193,086 | ||||
Elimination of Intersegment Revenues [Member] | ||||||
Revenues | $ (21,299) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | ||||
Accumulated losses | $ 40,138,485 | $ 38,322,456 | $ 36,527,300 | |
Accounts Receivable, Net | 76,063 | 226,614 | 895,769 | |
Allowance for doubtful collections | 0 | 0 | 0 | |
Inventory valuation | 0 | 0 | ||
Depreciation expense | 10,482 | $ 5,000 | 5,695 | 5,804 |
Stock-based compensation expense | 165,167 | 95,167 | ||
Impairment, Long-Lived Asset, Held-for-Use | 0 | |||
Malpractice Insurance, Annual Coverage Limit | 3,000,000 | |||
Accounts Receivable, after Allowance for Credit Loss | 226,614 | 895,769 | ||
Share-based Payment Arrangement, Noncash Expense | $ 88,000 | 165,167 | 95,167 | |
Minimum [Member] | Trademarks [Member] | ||||
Product Information [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 9 months | |||
Maximum [Member] | Trademarks [Member] | ||||
Product Information [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 219,222 | 414,415 | ||
Siemens [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 159,048 | |||
Inventory Valuation and Obsolescence [Member] | ||||
Product Information [Line Items] | ||||
Inventory valuation | 11,228 | 10,508 | ||
Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Accounts Receivable, Net | 414,415 | 1,986,534 | ||
Siemens [Member] | ||||
Product Information [Line Items] | ||||
Accounts Receivable, Net | 159,048 | 389,888 | ||
Taiwan Stock Exchange [Member] | ||||
Product Information [Line Items] | ||||
Accounts Receivable, Net | $ 400,065 | |||
Customer One [Member] | ||||
Product Information [Line Items] | ||||
Accounts Receivable, after Allowance for Credit Loss | $ 76,063 | |||
Customer Two [Member] | ||||
Product Information [Line Items] | ||||
Accounts Receivable, after Allowance for Credit Loss | $ 226,614 | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customers Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 77.00% | 83.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 40.00% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 77.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 25.00% | 28.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Siemens [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers Two [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 39.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 28.00% | 54.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Siemens [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | 11.00% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customers Three [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 76.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Taiwan Stock Exchange [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 11.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 25.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Other Customers [Member] | Minimum [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
NTD [Member] | ||||
Product Information [Line Items] | ||||
Insured by cdic | $ 3,000,000 | |||
Allowance for doubtful collections | $ 3,380 | $ 3,172 |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | $ 300,000 | $ 512,711 | $ 543,861 |
Less Current Portion | (300,000) | (512,711) | (543,861) |
Less: Debt Discount | |||
Total Long-Term | |||
MEGA sys Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 37,177 | 63,861 | |
Quadrant International LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 45,534 | 50,000 | |
Mr Alex Kuo [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 30,000 | 30,000 | |
Mr Kus Wife [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 100,000 | 100,000 | |
Mr Gregory Omi [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 200,000 | 200,000 | 200,000 |
Mr Robert Gillen [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | $ 100,000 | $ 100,000 | $ 100,000 |
SCHEDULE OF RELATED PARTY TRA_2
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) (Parenthetical) - USD ($) | Sep. 10, 2014 | Sep. 08, 2014 | Nov. 12, 2012 | Oct. 18, 2018 | Aug. 28, 2014 | Jun. 23, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 |
Related Party Transaction [Line Items] | |||||||||
Options granted | 2,500,000 | 695,000 | |||||||
Due to Related Parties | $ 512,711 | $ 543,861 | $ 300,000 | ||||||
Debenture Agreement [Member] | Quadrant International LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt principal amount | $ 50,000 | ||||||||
Debt interest rate | 0.00% | ||||||||
Debt maturity date | Dec. 31, 2019 | ||||||||
Debenture Agreement [Member] | Mr Alex Kuo [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt principal amount | $ 30,000 | ||||||||
Debt interest rate | 9.50% | ||||||||
Debt maturity date | Dec. 31, 2015 | Dec. 31, 2015 | |||||||
Options granted | 3,000 | 10,000 | |||||||
Exercise Price | $ 0.77 | ||||||||
Debenture Agreement [Member] | Mr Kus Wife [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt principal amount | $ 100,000 | ||||||||
Debt interest rate | 9.50% | ||||||||
Exercise Price | $ 0.77 | ||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt principal amount | $ 200,000 | ||||||||
Debt interest rate | 9.50% | ||||||||
Debt maturity date | Dec. 31, 2016 | ||||||||
Options granted | 20,000 | ||||||||
Exercise Price | $ 0.77 | ||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | Extended Maturity [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt maturity date | Dec. 31, 2016 | ||||||||
Debenture Agreement [Member] | Mr Robert Gillen [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt principal amount | $ 100,000 | ||||||||
Debt interest rate | 10.00% | ||||||||
Debt maturity date | Dec. 19, 2014 | Dec. 31, 2015 | |||||||
Options granted | 10,000 | ||||||||
Exercise Price | $ 0.77 | ||||||||
Interest expenses | $ 5,000 | ||||||||
Debenture Agreement [Member] | Mr Robert Gillen [Member] | Extended Maturity [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt maturity date | Dec. 31, 2016 |
SCHEDULE OF SHORT-TERM DEBT (De
SCHEDULE OF SHORT-TERM DEBT (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | $ 567,486 | $ 865,988 | $ 747,728 |
Short Term Debt | 567,486 | 865,988 | 713,828 |
Shareholder [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 100,000 | 100,000 | |
Siemens [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 82,486 | ||
Hua Nan Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 71,238 | 267,478 | |
Various Shareholders [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 210,000 | 346,250 | 346,350 |
Various Shareholders One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 275,000 | 313,500 | |
Shareholder One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | $ 35,000 |
SCHEDULE OF SHORT-TERM DEBT (_2
SCHEDULE OF SHORT-TERM DEBT (Details) (Parenthetical) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Feb. 28, 2019 | Jan. 31, 2019 | Apr. 30, 2018 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shareholder [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Short-term Debt | $ 100,000 | ||||||
Interest rate | 50.00% | ||||||
Maturity date, description | six month maturity, was due October 2018 | ||||||
Conversion price per share | $ 0.35 | ||||||
Siemens [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | ||||||
Debt Instrument, Maturity Date | Dec. 31, 2021 | ||||||
Hua Nan Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.42% | 2.61% | |||||
Maturity date, description | due December 2021 | due June 2021 | February - April 2020 | ||||
Various Shareholders [Member] | Debenture Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 10.00% | ||||||
Maturity date, description | beginning in February 2019 - December 2019, one year maturity, was due February 2020 – December 2020 | ||||||
Conversion price per share | $ 0.35 | ||||||
Various Shareholders One [Member] | Debenture Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date, description | beginning in January 2020 - December 2020, one year maturity, due January 2021 – December 2021 | ||||||
Conversion price per share | $ 0.35 | ||||||
Various Shareholders One [Member] | Debenture Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 10.00% | ||||||
Various Shareholders One [Member] | Debenture Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 20.00% | ||||||
Shareholder One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | ||||||
Maturity date, description | September 2020 |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | $ 67,921 | ||
Current Portion of Long-term debt | (47,944) | ||
Shanghai Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | $ 115,865 |
SCHEDULE OF LONG-TERM DEBT (D_2
SCHEDULE OF LONG-TERM DEBT (Details) (Parenthetical) - Shanghai Bank [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Debt interest rate | 1.00% |
Debt maturity date, description | February 2024 |
PREFERRED STOCK (Details Narrat
PREFERRED STOCK (Details Narrative) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Feb. 05, 2021 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, dividend rate | 9.50% | 9.50% | ||
Shares issued price per share | $ 1 | $ 1 | ||
Initial conversion price | $ 1 | |||
Preferred stock, conversion price | $ 1 | |||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 500 | 500 | 500 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |
Preferred stock, dividend rate | 9.50% | 9.50% | ||
Shares issued price per share | $ 10,000 | $ 10,000 | ||
Initial conversion price | $ 0.75 | |||
Preferred stock, conversion price | $ 0.75 | $ 0.35 | ||
Preferred stock, dividend payment term | 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. |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Apr. 21, 2016 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Exercised and exchanged shares of common stock | 1,270,000 | ||||
Proceeds from issuance of common stock | $ 2,113,000 | $ 63,578 | |||
Stock issued during period for cash, value | 2,113,000 | ||||
Tranche B Warrants [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | $ 0.35 | ||||
Tranche B Warrants [Member] | Warrant Exchange Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | $ 1.10 | ||||
Series B Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Exercised and exchanged shares of common stock | 380,000 | ||||
Common stock, price per share | $ 0.35 | ||||
Initial conversion price | $ 0.75 | ||||
Series B Preferred Stock [Member] | Tranche A Warrants [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | 0.35 | ||||
Series B Preferred Stock [Member] | Tranche A Warrants [Member] | Exchange Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | 1 | ||||
Series B Preferred Stock [Member] | Tranche B Warrants [Member] | Exchange Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | 1 | ||||
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Initial conversion price | $ 1 | ||||
Series A Preferred Stock [Member] | Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | 0.75 | ||||
Initial conversion price | 0.97 | ||||
Series A Preferred Stock [Member] | Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Initial exercise price | 0.35 | ||||
Initial conversion price | $ 0.86 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Proceeds from issuance of common stock | $ 2,113,000 | ||||
Stock issued during period for cash, shares | 5,355,238 | ||||
Stock issued during period for cash, value | $ 900,000 |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Shares, Outstanding at End of Year | 7,616,200 | 6,741,200 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.73 | $ 0.78 |
Shares, Granted | 2,500,000 | 695,000 |
Weighted-Average Exercise Price, Granted | $ 0.37 | $ 0.28 |
Shares, Exercised | (1,270,000) | |
Weighted-Average Exercise Price, Exercised | $ 0.16 | |
Shares, Exercised | 1,270,000 | |
Shares, Forfeited or Canceled | (355,000) | |
Weighted-Average Exercise Price, Forfeited or Canceled | $ 1.12 | |
Shares, Forfeited or Canceled | 355,000 | |
Shares, Options Exercisable at Year-End | 7,616,200 | 6,741,200 |
Weighted-Average Exercise Price, Options Exercisable at Year-End | $ 0.73 | $ 0.78 |
Weighted-Average Fair Value of Options Granted During the Period | $ 0.25 | $ 0.20 |
Shares, Outstanding at Beginning of Year | 6,741,200 | 6,046,200 |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 0.78 | $ 0.83 |
Shares, Outstanding at End of Year | 7,616,200 | 6,741,200 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.73 | $ 0.78 |
Shares, Options Exercisable at End of Year | 7,616,200 | 6,741,200 |
Weighted-Average Exercise Price, Options Exercisable at End of Year | $ 0.73 | $ 0.78 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Range of Exercise Prices Minimum | $ 0.04 |
Range of Exercise Prices Maximum | $ 1.75 |
Options Outstanding, Number Outstanding | shares | 7,616,200 |
Options Outstanding, Weighted-Average Remaining Contractual Life | 5 years 8 months 12 days |
Options Outstanding, Weighted-Average Exercise Price | $ 0.73 |
Options Exercisable, Number Exercisable | shares | 7,616,200 |
Options Exercisable, Weighted-Average Exercise Price | $ 0.73 |
SCHEDULE OF BLACK-SCHOLES OPTIO
SCHEDULE OF BLACK-SCHOLES OPTION-PRICING MODEL (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Expected Life | 5 years | 5 years |
Dividend Yield | 0.00% | 0.00% |
Expected Volatility | 90.00% | 90.00% |
Risk-Free Interest Rate | 0.18% | 1.67% |
SCHEDULE OF WARRANT TRANSACTION
SCHEDULE OF WARRANT TRANSACTIONS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.38 | $ 0.38 |
Weighted-Average Exercise Price, Options Exercisable at Year-End | $ 0.38 | $ 0.38 |
Shares, Options Exercisable at End of Year | 4,350,034 | 5,563,509 |
Shares, Outstanding at Beginning of Year | 5,563,509 | 4,796,876 |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 0.38 | $ 0.40 |
Shares, Granted | 989,856 | 1,335,178 |
Weighted-Average Exercise Price, Granted | $ 0.35 | $ 0.35 |
Shares, Exercised | ||
Shares, Forfeited or Canceled | (2,203,331) | (568,545) |
Weighted-Average Exercise Price, Forfeited or Canceled | $ 0.36 | $ 0.45 |
Shares, Outstanding at End of Year | 4,350,034 | 5,563,509 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.38 | $ 0.38 |
Weighted-Average Exercise Price, Options Exercisable at End of Year | 0.38 | 0.38 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Fair Value of Options Granted During the Period | 0.10 | 0 |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Fair Value of Options Granted During the Period | $ 0.26 | $ 0.22 |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding at Beginning of Year | 5,563,509 | 4,796,876 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.38 | $ 0.38 |
Shares, Granted | 989,856 | 1,335,178 |
Weighted-Average Exercise Price, Granted | $ 0.35 | $ 0.35 |
Shares, Exercised | ||
Shares, Forfeited or Canceled | (2,203,331) | (568,545) |
Weighted-Average Exercise Price, Forfeited or Canceled | $ 0.36 | $ 0.45 |
Shares, Outstanding at End of Year | 4,350,034 | 5,563,509 |
Shares, Warrants Exercisable at Year-End | 4,350,034 | |
Weighted-Average Exercise Price, Options Exercisable at Year-End | $ 0.38 | $ 0.38 |
Shares, Options Exercisable at End of Year | 5,563,509 | |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 0.38 | $ 0.40 |
Shares, Outstanding at End of Year | 4,350,034 | |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.38 | 0.38 |
Weighted-Average Exercise Price, Options Exercisable at End of Year | 0.38 | 0.38 |
Warrant [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Fair Value of Warrants Granted During the Year | 0.10 | 0 |
Warrant [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-Average Fair Value of Warrants Granted During the Year | $ 0.26 | $ 0.22 |
SUMMARY OF WARRANTS OUTSTANDING
SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE INFORMATION (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices Minimum | $ 0.04 | ||
Range of Exercise Prices Maximum | $ 1.75 | ||
Warrants Outstanding, Number Outstanding | 4,350,034 | 5,563,509 | 4,796,876 |
Warrants Outstanding, Weighted-Average Exercise Price | $ 0.38 | $ 0.38 | $ 0.40 |
Warrants Exercisable, Number Exercisable | 4,350,034 | 5,563,509 | |
Warrants Exercisable, Weighted-Average Exercise Price | $ 0.38 | $ 0.38 | |
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices Minimum | 0.35 | ||
Range of Exercise Prices Maximum | $ 1.65 | ||
Warrants Outstanding, Number Outstanding | 4,350,034 | ||
Warrants Outstanding, Weighted-Average Remaining Contractual Life | 1 year | ||
Warrants Outstanding, Weighted-Average Exercise Price | $ 0.38 | ||
Warrants Exercisable, Number Exercisable | 4,350,034 | ||
Warrants Exercisable, Weighted-Average Exercise Price | $ 0.38 | ||
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Prices Minimum | 0.35 | ||
Range of Exercise Prices Maximum | $ 1.65 | ||
Warrants Outstanding, Number Outstanding | 4,350,034 | ||
Warrants Outstanding, Weighted-Average Remaining Contractual Life | 1 year | ||
Warrants Outstanding, Weighted-Average Exercise Price | $ 0.38 | ||
Warrants Exercisable, Number Exercisable | 4,350,034 | ||
Warrants Exercisable, Weighted-Average Exercise Price | $ 0.38 | ||
Warrants Outstanding, Weighted-Average Exercise Price | 0.38 | $ 0.38 | $ 0.40 |
Warrants Exercisable, Number Exercisable | 5,563,509 | ||
Warrants Exercisable, Weighted-Average Exercise Price | $ 0.38 | $ 0.38 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING AND EXERCISABLE (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Life | 5 years | 5 years |
Dividend Yield | 0.00% | 0.00% |
Expected Volatility | 90.00% | 90.00% |
Risk-Free Interest Rate | 0.18% | 1.67% |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants term | 1 year | |
Expected Life | 1 year 6 months | 1 year 6 months |
Dividend Yield | 0.00% | 0.00% |
Expected Volatility | 90.00% | 90.00% |
Minimum [Member] | Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-Free Interest Rate | 0.19% | 1.74% |
Maximum [Member] | Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-Free Interest Rate | 1.59% | 2.47% |
Measurement Input, Expected Term [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants term | 1 year 6 months | 1 year 6 months |
Measurement Input, Expected Dividend Rate [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants measurement input | 0 | 0 |
Measurement Input, Option Volatility [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants measurement input | 0.90 | 0.90 |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants measurement input | 0.0019 | 0.0174 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants measurement input | 0.0159 | 0.0247 |
STOCK OPTION PLAN AND WARRANT_2
STOCK OPTION PLAN AND WARRANTS (Details Narrative) - USD ($) | Jan. 18, 2010 | Oct. 15, 2009 | Dec. 31, 2020 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding | 7,616,200 | 6,741,200 | 6,046,200 | ||||
Unrecognized stock- based compensation | $ 0 | ||||||
Weighted-average term | 3 years | ||||||
2009 Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock issued | 1,500,000 | ||||||
Options outstanding | 0 | ||||||
2010 Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding | 7,616,200 | ||||||
Number of options to purchase | 1,000,000 | ||||||
Number of common stock shares issued increase during the period | 13,000,000 | 3,000,000 | |||||
Two Thousand Nine Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | ||||||
Two Thousand Ten Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | 13,000,000 | 3,000,000 | ||||
2020 Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding | 2,500,000 | ||||||
2020 Stock Option Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Tax Operating Loss Carryforward - USA | $ 9,800,000 | $ 9,600,000 |
Other | ||
Valuation Allowance - USA | (9,800,000) | (9,600,000) |
Deferred Tax Assets, Net | ||
Deferred Tax Assets, Net |
SUMMARY OF OPERATING LOSS CARRY
SUMMARY OF OPERATING LOSS CARRYFORWARDS (Details) - USD ($) | 12 Months Ended | |||||||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | |
Income Tax Disclosure [Abstract] | ||||||||||||||||
Net Operating Loss | $ 590,000 | $ 260,000 | $ 160,000 | $ 140,000 | $ 1,640,000 | $ 3,400,000 | $ 5,230,000 | $ 5,600,000 | $ 2,850,000 | $ 2,427,000 | $ 1,799,000 | $ 1,750,000 | $ 1,308,000 | $ 429,000 | $ 476,000 | $ 414,000 |
Year of Expiration | 2040 | 2039 | 2038 | 2037 | 2036 | 2035 | 2034 | 2033 | 2032 | 2031 | 2030 | 2029 | 2028 | 2027 | 2026 | 2025 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | |
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating loss carryforward | $ 590,000 | $ 260,000 | $ 160,000 | $ 140,000 | $ 1,640,000 | $ 3,400,000 | $ 5,230,000 | $ 5,600,000 | $ 2,850,000 | $ 2,427,000 | $ 1,799,000 | $ 1,750,000 | $ 1,308,000 | $ 429,000 | $ 476,000 | $ 414,000 | |
Taiwan corporate tax rate | Sole-Vision Technologies, Inc. is a subsidiary of the Company which is operating in Taiwan as a profit-seeking enterprise. Its applicable corporate income tax rate is 17%. In addition, Taiwan’s corporate tax system allows the government to levy a 10% profit retention tax on undistributed earnings for the prior year. This tax will not be provided if the company distributed the earnings before the ended of the fiscal year. | ||||||||||||||||
AZERBAIJAN | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating loss carryforward | $ 2,800,000 | $ 19,400,000 | |||||||||||||||
Operating loss carryforward, limitations on use | which only carryforward for five years | ||||||||||||||||
CALIFORNIA | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating loss carryforward | $ 2,000,000 | ||||||||||||||||
Arizona And California [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating loss carryforward, limitations on use | which began to expire in 2014 | ||||||||||||||||
Domestic Tax Authority [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating loss carryforward | $ 28,000,000 | 25,000,000 | |||||||||||||||
Operating loss carryforward, limitations on use | which will begin to expire in 2025 | ||||||||||||||||
US Based Segment [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Valuation allowance increased | $ 2,100,000 | $ 2,100,000 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net Loss | $ (453,431) | $ (600,127) | $ (1,775,728) | $ (1,185,493) | $ (1,602,303) | $ (1,154,808) |
Weighted Average Shares | 69,581,603 | 51,401,395 | 51,718,895 | 50,693,726 | ||
Basic Loss Per Share | $ (0.03) | $ (0.02) | $ (0.03) | $ (0.02) |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents that could be convertible into common stock | 11,966,234 | 12,304,709 |
CONTINGENT LIABILITIES_TAIWAN (
CONTINGENT LIABILITIES—TAIWAN (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Megasys [Member] | ||
Financial exposure event of failure to provide after- project services in the future | $ 61,435 | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Jun. 30, 2021 | Feb. 05, 2021 | Nov. 08, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 21, 2016 |
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of common stock | $ 2,113,000 | $ 63,578 | |||||||
Debt description | On June 30, 2021 the company issued common stock to pay Series B Preferred shareholders $455,926 of accrued dividends at $0.35 per common share. | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 384,454 | ||||||||
Sale of Stock, Number of Shares Issued in Transaction | 756,000 | ||||||||
Sale of Stock, Price Per Share | $ 0.75 | ||||||||
Proceeds from Issuance or Sale of Equity | $ 567,000 | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 270,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.35 | ||||||||
Proceeds from Warrant Exercises | $ 94,500 | ||||||||
Subsequent Event [Member] | Principal [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt converted | 110,000 | ||||||||
Subsequent Event [Member] | Accrued Interest [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt converted | $ 22,809 | ||||||||
Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of common stock | $ 1,508,000 | ||||||||
Common Stock [Member] | Principal [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt converted | 439,750 | ||||||||
Common Stock [Member] | Interest [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt converted | $ 125,376 | ||||||||
Series B Preferred Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Conversion of stock shares converted | 117.372 | ||||||||
Price per share | $ 10,000 | ||||||||
Preferred stock conversion price | $ 0.35 | $ 0.75 | |||||||
Shares issued for dividends | $ 455,926 | ||||||||
Preferred stock dividends per share | $ 0.35 | ||||||||
Sale of Stock, Price Per Share | $ 0.35 | ||||||||
Series B Preferred Stock [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued upon conversion | 3,353,486 |