Cover
Cover | 6 Months Ended |
Jun. 30, 2022 | |
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 Small Business | false |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | |||
Cash and Cash Equivalents | $ 6,197,455 | $ 1,385,275 | |
Restricted Cash | 133,093 | 142,688 | |
Accounts Receivable, Net | 122,602 | 492,752 | |
Inventory, Net | 630,416 | 344,654 | |
Other Current Assets | 244,548 | 310,657 | |
Total Current Assets | 7,328,114 | 2,676,026 | |
PROPERTY AND EQUIPMENT, NET | 31,194 | 38,189 | |
OTHER ASSETS | |||
Intangible Assets, Net | |||
Other Assets | 232,320 | 273,419 | |
Total Other Assets | 232,320 | 273,419 | |
Total Assets | 7,591,628 | 2,987,634 | |
CURRENT LIABILITIES | |||
Accounts and Other Payables | 2,130,382 | 2,955,826 | |
Due to Related Parties | 300,000 | 300,000 | |
Short Term Debt | 218,282 | 50,000 | |
Current Portion of Long-Term Debt | 112,188 | 120,284 | |
Total Current Liabilities | 2,760,852 | 3,426,110 | |
LONG-TERM DEBT | 259,903 | 338,803 | |
LONG-TERM DIVIDENDS PAYABLE | |||
STOCKHOLDERS’ EQUITY | |||
Preferred stock value | |||
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 77,346,950 and 52,671,395 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 117 | 97 | |
Additional Paid-In Capital | 47,862,427 | 40,727,518 | |
Subscription Receivable | |||
Accumulated Comprehensive Loss | (198,572) | (143,493) | |
Accumulated Deficit | (43,093,099) | (41,361,401) | |
Total Stockholders’ Equity (Deficit) | 4,570,873 | (777,279) | $ (3,706,568) |
Total Liabilities and Stockholders’ Equity | $ 7,591,628 | 2,987,634 | |
Previously Reported [Member] | |||
CURRENT ASSETS | |||
Cash and Cash Equivalents | 1,385,275 | 249,521 | |
Restricted Cash | 142,688 | 165,145 | |
Accounts Receivable, Net | 492,752 | 226,614 | |
Inventory, Net | 344,654 | 221,868 | |
Other Current Assets | 310,657 | 122,101 | |
Total Current Assets | 2,676,026 | 985,249 | |
PROPERTY AND EQUIPMENT, NET | 38,189 | 22,027 | |
OTHER ASSETS | |||
Intangible Assets, Net | 6,666 | ||
Other Assets | 273,419 | 231,624 | |
Total Other Assets | 273,419 | 238,290 | |
Total Assets | 2,987,634 | 1,245,566 | |
CURRENT LIABILITIES | |||
Accounts and Other Payables | 2,955,826 | 3,157,810 | |
Due to Related Parties | 300,000 | 512,711 | |
Short Term Debt | 50,000 | 865,988 | |
Current Portion of Long-Term Debt | 120,284 | ||
Total Current Liabilities | 3,426,110 | 4,536,509 | |
LONG-TERM DEBT | 338,803 | ||
LONG-TERM DIVIDENDS PAYABLE | 415,625 | ||
STOCKHOLDERS’ EQUITY | |||
Preferred stock value | |||
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 77,346,950 and 52,671,395 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 773 | 527 | |
Additional Paid-In Capital | 40,726,842 | 34,768,615 | |
Accumulated Comprehensive Loss | (143,493) | (153,254) | |
Accumulated Deficit | (41,361,401) | (38,322,456) | |
Total Stockholders’ Equity (Deficit) | (777,279) | (3,706,568) | |
Total Liabilities and Stockholders’ Equity | $ 2,987,634 | $ 1,245,566 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred Stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 12,500,000 | 12,500,000 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 37,500,000 | 37,500,000 | |
Common stock, shares outstanding | 11,677,265 | 9,668,369 | |
Common stock, shares issued | 11,677,265 | 9,668,369 | |
Previously Reported [Member] | |||
Preferred Stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding | 77,346,950 | 52,671,395 | |
Common stock, shares issued | 77,346,950 | 52,671,395 | |
Series B Preferred Stock [Member] | |||
Preferred Stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 500 | 500 | |
Preferred stock, shares outstanding | 0 | 0 | |
Preferred stock, shares issued | 0 | 0 | |
Series B Preferred Stock [Member] | Previously Reported [Member] | |||
Preferred Stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares authorized | 500 | 500 | |
Preferred stock, shares outstanding | 0 | 257.2 | |
Preferred stock, shares issued | 0 | 257.2 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUE | ||||||
TOTAL REVENUE | $ 651,412 | $ 560,692 | $ 882,269 | $ 893,272 | ||
COST OF REVENUE | 462,516 | 427,457 | 552,826 | 645,008 | ||
GROSS PROFIT | 188,896 | 133,235 | 329,443 | 248,264 | ||
OPERATING EXPENSES | ||||||
General & Administrative | 1,247,084 | 775,657 | 2,039,247 | 1,343,306 | ||
Total Operating Expenses | 1,247,084 | 775,657 | 2,039,247 | 1,343,306 | ||
LOSS FROM OPERATIONS | (1,058,188) | (642,422) | (1,709,804) | (1,095,042) | ||
OTHER INCOME (EXPENSE) | ||||||
Miscellaneous Income (Expense) | (4) | (67) | 167 | (67) | ||
Interest Income | 6,693 | 97 | 7,309 | 135 | ||
Interest Expense | (13,479) | (45,191) | (26,312) | (227,323) | ||
Total Other Income (Expense) | (6,790) | (45,161) | (18,836) | (227,255) | ||
LOSS BEFORE INCOME TAXES | (1,064,978) | (687,583) | (1,728,640) | (1,322,297) | ||
BENEFIT (PROVISION) FOR INCOME TAXES | 78 | (3,058) | ||||
NET LOSS | $ (1,064,900) | $ (687,583) | $ (1,731,698) | $ (1,322,297) | $ (2,998,644) | |
BASIC AND DILUTED LOSS PER SHARE | $ (0.09) | $ (0.08) | $ (0.16) | $ (0.16) | ||
WEIGHTED AVERAGE SHARES | 11,677,265 | 8,999,062 | 10,676,956 | 8,417,157 | ||
Previously Reported [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | 1,917,848 | $ 1,484,235 | ||||
COST OF REVENUE | 1,085,593 | 991,558 | ||||
GROSS PROFIT | 832,255 | 492,677 | ||||
OPERATING EXPENSES | ||||||
General & Administrative | 3,557,603 | 1,721,420 | ||||
Total Operating Expenses | 3,557,603 | 1,721,420 | ||||
LOSS FROM OPERATIONS | (2,725,349) | (1,228,743) | ||||
OTHER INCOME (EXPENSE) | ||||||
Miscellaneous Income (Expense) | 24,282 | |||||
Interest Income | 354 | 914 | ||||
Interest Expense | (273,649) | (398,756) | ||||
Total Other Income (Expense) | (273,295) | (373,560) | ||||
LOSS BEFORE INCOME TAXES | (2,998,644) | (1,602,303) | ||||
BENEFIT (PROVISION) FOR INCOME TAXES | ||||||
NET LOSS | $ (2,998,644) | $ (1,602,303) | ||||
BASIC AND DILUTED LOSS PER SHARE | $ (0.04) | $ (0.03) | ||||
WEIGHTED AVERAGE SHARES | 71,522,940 | 51,718,895 | ||||
Equipment Sales [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 590,853 | $ 475,000 | $ 780,374 | $ 779,105 | ||
Equipment Sales [Member] | Previously Reported [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 1,647,996 | $ 1,151,027 | ||||
Service Revenue [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | 60,559 | 84,682 | 101,895 | 112,980 | ||
Service Revenue [Member] | Previously Reported [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | 264,402 | 325,680 | ||||
Other Revenue [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 1,010 | $ 1,187 | ||||
Other Revenue [Member] | Previously Reported [Member] | ||||||
REVENUE | ||||||
TOTAL REVENUE | $ 5,450 | $ 7,528 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Common Stock [Member] Previously Reported [Member] | Preferred Stock [Member] Series B Preferred Stock [Member] | Preferred Stock [Member] Previously Reported [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] Previously Reported [Member] | Retained Earnings [Member] | Retained Earnings [Member] Previously Reported [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member] Previously Reported [Member] | Total | Previously Reported [Member] |
Balance at Dec. 31, 2019 | $ 514 | $ 34,052,704 | $ (36,493,300) | $ (195,287) | $ (2,635,369) | |||||||
Balance, shares at Dec. 31, 2019 | 51,401,395 | 247 | ||||||||||
Common Stock Issued for Cash | ||||||||||||
Costs of Capital | ||||||||||||
Stock Based Compensation | 165,167 | 165,167 | ||||||||||
Warrants for Services | 11,475 | 11,475 | ||||||||||
Warrants for Interest Expense | 136,110 | 136,110 | ||||||||||
Convertible Debenture Value | 105,572 | 105,572 | ||||||||||
Preferred Stock - Series B for Dividend | 95,000 | 95,000 | ||||||||||
Preferred Stock - Series B for Dividend, shares | 10 | |||||||||||
Dividends - P/S Series B | (226,853) | (226,853) | ||||||||||
Exercise of options and warrants | $ 13 | 202,587 | $ 202,600 | |||||||||
Exercise of options and warrants, shares | 1,270,000 | 1,270,000 | ||||||||||
Net Loss | (1,602,303) | $ (1,602,303) | ||||||||||
Comprehensive Loss | 42,033 | 42,033 | ||||||||||
Preferred Stock - Series B | ||||||||||||
Conversion of Debt to stock | ||||||||||||
Payment on Stockholder Prom Note | ||||||||||||
Balance at Dec. 31, 2020 | $ 66 | $ 527 | $ 34,769,076 | 34,768,615 | $ (38,322,456) | (38,322,456) | $ (153,254) | (153,254) | $ (3,706,568) | (3,706,568) | ||
Balance, shares at Dec. 31, 2020 | 6,583,924 | 52,671,395 | 257 | 257 | ||||||||
Common Stock Issued for Cash | $ 8 | $ 61 | 2,661,992 | 2,661,939 | 2,662,000 | 2,662,000 | ||||||
Common Stock Issued for Cash, shares | 757,655 | 6,061,238 | ||||||||||
Costs of Capital | (2,091,101) | (2,091,101) | (2,091,101) | (2,091,101) | ||||||||
Stock Based Compensation | 801,908 | 801,908 | 801,908 | 801,908 | ||||||||
Common Stock for Accounts Payable | $ 1 | $ 2 | 99,789 | 99,787 | 99,789 | 99,789 | ||||||
Common Stock for Accounts Payable, shares | 27,896 | 223,164 | ||||||||||
Common Stock for Costs of Financing | $ 6 | $ 50 | 1,932,730 | 1,932,686 | 1,932,736 | 1,932,736 | ||||||
Common Stock for Costs of Financing, shares | 628,750 | 5,030,000 | ||||||||||
Warrants for Services | 148,480 | 148,480 | 148,480 | 148,480 | ||||||||
Warrants for Interest Expense | 69,729 | 69,729 | 69,729 | 69,729 | ||||||||
Convertible Debenture Value | 69,729 | 69,729 | 69,729 | 69,729 | ||||||||
Preferred Stock - Series B for Dividend | 23,750 | 23,750 | 23,750 | 23,750 | ||||||||
Preferred Stock - Series B for Dividend, shares | 2 | 2 | ||||||||||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock | $ 11 | $ 87 | 432,165 | 432,089 | 432,176 | 432,176 | ||||||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock, shares | 1,090,015 | 8,720,119 | (259) | (259) | ||||||||
Dividends - P/S Series B | (40,301) | (40,301) | (40,301) | (40,301) | ||||||||
Conversion of Debt & Interest to Common Stock | $ 4 | $ 35 | 1,294,576 | 1,294,545 | 1,294,580 | 1,294,580 | ||||||
Conversion of Debt & Interest to Common Stock, shares | 439,527 | 3,516,215 | ||||||||||
Exercise of options and warrants | $ 1 | $ 11 | 514,696 | 514,686 | 514,697 | $ 514,697 | ||||||
Exercise of options and warrants, shares | 140,602 | 1,124,819 | 500,000 | |||||||||
Net Loss | (2,998,644) | (2,998,644) | (2,998,644) | $ (2,998,644) | ||||||||
Comprehensive Loss | 9,761 | 9,761 | 9,761 | 9,761 | ||||||||
Balance at Dec. 31, 2021 | $ 97 | $ 773 | 40,727,518 | $ 40,726,842 | (41,361,401) | $ (41,361,401) | (143,493) | $ (143,493) | (777,279) | $ (777,279) | ||
Balance, shares at Dec. 31, 2021 | 9,668,369 | 77,346,950 | 0 | 0 | ||||||||
Common Stock Issued for Cash | $ 19 | 8,011,231 | 8,011,250 | |||||||||
Common Stock Issued for Cash, shares | 1,885,000 | |||||||||||
Costs of Capital | (1,163,918) | (1,163,918) | ||||||||||
Stock Based Compensation | 93,900 | 93,900 | ||||||||||
Exercise of options and warrants | 23,000 | $ 23,000 | ||||||||||
Exercise of options and warrants, shares | 8,215 | 62,500 | ||||||||||
Net Loss | (1,731,698) | $ (1,731,698) | ||||||||||
Comprehensive Loss | (55,079) | (55,079) | ||||||||||
Common Stock issued for conversion error | ||||||||||||
Common Stock issued for conversion error, shares | 65 | |||||||||||
Common Stock issued for services | $ 1 | 167,899 | 167,900 | |||||||||
Common Stock issued for services, shares | 115,000 | |||||||||||
Warrants sold in Over allotment | 2,797 | 2,797 | ||||||||||
8 for 1 conversion adjustment, shares | 616 | |||||||||||
Balance at Jun. 30, 2022 | $ 117 | $ 47,862,427 | $ (43,093,099) | $ (198,572) | $ 4,570,873 | |||||||
Balance, shares at Jun. 30, 2022 | 11,677,265 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Loss | $ (1,731,698) | $ (1,322,297) | $ (2,998,644) | |
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities | ||||
Depreciation and Amortization | 8,959 | 9,666 | ||
Interest Value of Convertible Debt Issued | 69,729 | |||
Stock Option Compensation | 93,900 | 88,000 | ||
Common Stock Issued for Services | 167,900 | |||
Common Stock Warrants Issued for Services | 71,793 | |||
Common Stock Warrants Issued for Interest | 69,729 | |||
(Increase) Decrease in Operating Assets | ||||
Accounts Receivable | 370,150 | 1,807 | ||
Inventory | (285,762) | (37,426) | ||
Other Current Assets | (22,220) | (274,265) | ||
Other Assets | 41,295 | 60,476 | ||
Increase (Decrease) in Accounts and Other Payables | (825,640) | 491,169 | ||
Net Cash Used in Operating Activities | (2,183,116) | (771,619) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of Property and Equipment | (1,964) | (45,959) | ||
Net Cash Provided by (Used in) Investing Activities | (1,964) | (45,959) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Changes in Restricted Cash | 9,596 | (166,721) | ||
Proceeds from (Payments on) Short-Term Notes Payable/Debt | 160,186 | 481,450 | ||
Proceeds from (Payments to) Due to Related Parties | (82,711) | |||
Proceeds from (Payments to) Long-Term Debt | (78,900) | |||
Payments for Deferred Finance Costs | ||||
Common Stock Issued, Net of (Cost of Capital) | 6,961,457 | 1,508,000 | ||
Net Cash Provided by Financing Activities | 7,052,339 | 1,740,018 | ||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (55,079) | 16,906 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,812,180 | 939,346 | ||
Cash and Cash Equivalents- Beginning of Period | 1,385,275 | 249,521 | 249,521 | |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 6,197,455 | 1,188,867 | 1,385,275 | $ 249,521 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest Paid | 1,013 | 330 | ||
Income Tax Paid | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Common Stock issued for Consulting Agreements related to Cost of Capital | 1,895,000 | |||
Debenture Accrued Interest converted to Common Stock | 125,376 | |||
Debenture Principal converted to Common Stock | 439,750 | |||
Rent Accounts Payable to related Party converted to Common Stock | 55,789 | |||
Accrued Dividends converted to Common Stock | 455,926 | |||
Previously Reported [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net Loss | (2,998,644) | (1,602,303) | ||
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities | ||||
Depreciation and Amortization | 15,016 | 25,695 | ||
Interest Value of Convertible Debt Issued | 69,729 | 105,572 | ||
Stock Option Compensation | 801,908 | 165,167 | ||
Common Stock Warrants Issued for Services | 148,480 | 11,475 | ||
Common Stock Warrants Issued for Interest | 69,729 | 136,110 | ||
(Increase) Decrease in Operating Assets | ||||
Accounts Receivable | (266,138) | 669,155 | ||
Inventory | (122,786) | (89,121) | ||
Other Current Assets | (100,228) | 84,822 | ||
Other Assets | (41,795) | (19,242) | ||
Increase (Decrease) in Accounts and Other Payables | 452,636 | 367,102 | ||
Net Cash Used in Operating Activities | (1,972,093) | (145,568) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of Property and Equipment | (24,513) | (21,915) | ||
Net Cash Provided by (Used in) Investing Activities | (24,513) | (21,915) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Changes in Restricted Cash | 22,457 | (7,385) | ||
Proceeds from (Payments on) Short-Term Notes Payable/Debt | (11,238) | 152,260 | ||
Proceeds from (Payments to) Due to Related Parties | (82,711) | (31,150) | ||
Proceeds from (Payments to) Long-Term Debt | 459,087 | |||
Payments for Deferred Finance Costs | (88,328) | |||
Common Stock Issued, Net of (Cost of Capital) | 2,823,332 | |||
Net Cash Provided by Financing Activities | 3,122,599 | 113,725 | ||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 9,761 | 46,309 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,135,754 | (7,449) | ||
Cash and Cash Equivalents- Beginning of Period | $ 1,385,275 | $ 249,521 | 249,521 | 256,970 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 1,385,275 | 249,521 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Interest Paid | 2,565 | 5,016 | ||
Income Tax Paid | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Common Stock issued for Consulting Agreements related to Cost of Capital | 1,932,736 | |||
Debenture Principal converted to Common Stock | 934,750 | 499,750 | ||
Rent Accounts Payable to related Party converted to Common Stock | 55,789 | |||
Accrued Dividends converted to Common Stock | 455,926 | |||
Debenture Accrued Interest converted to Common Stock | 359,831 | 288,787 | ||
Accounts Payable converted to Common Stock | 44,000 | |||
Dividends Paid with Series B Preferred Stock | 95,000 | |||
Warrants Issued for Services | $ 148,480 | $ 11,475 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 provides 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. Users can set up alerts instead of watching hours of video recording after-the-fact. Iveda offers many IoT sensors and devices for a variety of applications such as energy management, smart home, smart building, smart community, and patient/elder care. Together, 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 a dashboard for all of Iveda’s platforms for central device management. 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. Iveda’s Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole structures. The Utilus network uses WiFi, 4G and 5G small cell capabilities, and other wireless protocols to provide distributed video surveillance with AI video search technology and remote management of local devices such as trackers, water meters, electrical meters, valves, circuit breakers and sensors. In the last few years, smart city has been a hot topic among municipalities 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 have 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 originally 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. Our Taiwan-based subsidiary Iveda Taiwan, formerly known as MEGAsys, our wholly-owned subsidiary, 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. Iveda Taiwan combines security surveillance products, software, and services to provide integrated security solutions to the end user. Through Iveda Taiwan, we have access not only to Asian markets but also to Asian manufacturers and engineering expertise. Iveda Taiwan is our research and development arm, working with a team of developers in Taiwan. Consolidation Effective April 30, 2011, we completed our acquisition of Taiwan-based Sole Vision Technologies (dba Iveda Taiwan). We consolidate our financial statements with the financial statements of Iveda Taiwan. 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 $ 43 million from January 2005 through June 30, 2021 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 not make any impairment for the six months ended June 30, 2022 and year ended December 31, 2021. 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 Iveda Taiwan 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, annual license 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. One customer (Chunghwa Telecom) represented approximately 95 % of total accounts receivable of $ 492,752 as of December 31, 2021. This customer is a longtime customer, and we do not expect any problem with the collectability of these accounts receivable. We had revenue from one customer with greater than 10 % of total revenues during the six months ended June 30, 2022 and two customers for the year ended December 31, 2021 that represented approximately 53 % and 55 % of total revenues, respectively. We had $ 527,256 revenues ( 60 %) from Chunghwa Telecom of total revenues of $ 882,269 for the six months ended June 30, 2022. We had $ 786,686 revenues ( 41 %) from Chunghwa Telecom and $ 260,946 revenues ( 14 %) from Taiwan Stock Exchange Corporation of total revenues of $ 1,917,848 for the year ended December 31, 2021. No other customers represented greater than 10 % of total revenues in the six months ended June 30, 2022 and year ended December 31, 2021. 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 June 30, 2022 and December 31, 2021 no allowance for uncollectible accounts 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 as of June 30, 2022 and December 31, 2021. 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 six months ended June 30, 2022 was $ 8,959 and for the year ended December 31, 2021 was $ 15,016 . Intangible Assets Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of Iveda Taiwan. Such assets are fully amortized at December 31, 2021. Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 Total $ 6,666 Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of Iveda Taiwan’ 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 2021, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2021. 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 2017 to 2021 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 2017 to 2021 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 June 30, 2022 December 31, 2021 Accounts Payable $ 375,774 $ 62,889 Accrued Expenses 1,595,660 2,834,726 Deferred Revenue and Customer Deposits 158,948 58,211 Accounts and Other Payables $ 2,130,382 $ 2,955,826 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 June 30, 2022 and December 31, 2021, 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 $93,900 and $801,908 of stock-based compensation expense for the six months ended June 30, 2022 and December 31, 2021, respectively. Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of June 30, 2022 and December 31, 2021. 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 June 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 111,948 $ 3,799,496 Republic of China (Taiwan) $ 770,322 $ 771,377 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 2021 have been reclassified to conform to the 2022 presentation. New Accounting Standards No new relevant accounting standards | |
Previously Reported [Member] | ||
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, 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 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 years ended December 31, 2021 and 2020. 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. One customer (Chunghwa Telecom) represented approximately 95% of total accounts receivable of $ 492,752 as of December 31, 2021 and 77% of total accounts receivable of $ 76,063 as of December 31, 2020. This customer is a longtime customer, and we don’t expect any problem with collectability of these accounts receivable. We had revenue from two customers with greater than 10% of total revenues during 2021 that represented approximately 55% of total revenues. We had $ 786,686 revenues ( 41% ) from Chunghwa Telecom and $ 260,946 revenues ( 14% ) from Taiwan Stock Exchange Corporation of total revenues of $ 1,917,848 . 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 years ended December 31, 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 December 31, 2021 and 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 December 31, 2021 and 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 years ended December 31, 2021 and 2020 was $ 15,016 and $ 25,695 , respectively. Intangible Assets Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 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 2021, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2021. 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 2017 to 2021 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 2017 to 2021 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 December 31, 2021 December 31, 2020 Accounts Payable $ 62,889 $ 405,819 Accrued Expenses 2,834,726 2,751,127 Deferred Revenue and Customer Deposits 58,211 864 Accounts and Other Payables $ 2,955,826 $ 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 $ 801,908 and $ 165,167 of stock-based compensation expense for the years ended December 31, 2021 and 2020, respectively. 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, 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 December 31, 2021 Net Revenue Net Assets (Liabilities) United States $ 133,678 $ (1,586,925 ) Republic of China (Taiwan) $ 1,784,170 $ 809,647 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 |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
RELATED PARTIES | NOTE 2 RELATED PARTIES SCHEDULE OF RELATED PARTY TRANSACTIONS June 30, 2022 (Unaudited) December 31, 2021 200,000 200,000 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 2,500 shares of our common stock with an exercise price of $ 6.16 per share. This debenture was extended to December 31, 2022. 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 1,250 shares of common stock at an exercise price of $ 6.16 per share This debenture was extended to December 31, 2022 . $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 300,000 Less Current Portion (300,000 ) (300,000 ) Total Long-Term $ - $ - | |
Previously Reported [Member] | ||
RELATED PARTIES | NOTE 2 RELATED PARTIES SCHEDULE OF RELATED PARTY TRANSACTIONS December 31, 2021 December 31, 2020 During 2020 one of the three MEGAsys directors loaned money to MEGAsys at no interest. - 37,177 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, 2022 . 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, 2022 . $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 512,711 Less Current Portion (300,000 ) (512,711 ) Less: Debt Discount - - Total Long-Term $ - $ - |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 June 30, 2022 (Unaudited) December 31, 2021 $ 50,000 $ 50,000 Debenture agreements with a shareholder at 10 % interest rate beginning in February 2019 - December 2019, one year maturity, were due February 2020 – December 2020 , principal and interest convertible at $ 2.80 per share into common stock at the option of the holder until repaid. All principal and accrued interest converted during 2021 except one remaining $ 50,000 debenture and accrued interest of $ 12,079 . $ 50,000 $ 50,000 Loan Agreement with Shanghai Bank at 2.68 % interest rate per annum due January 2023 . 67,313 - Loan agreement with Hua Nam bank at 2.42 % interest rate per annum due September 2022 . 100,969 - Balance at end of period $ 218,282 $ 50,000 Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT June 30, 2022 December 31. 2021 371,091 469,087 Loans from Shanghai Bank with interest rates 1.00 % - 1.5 % per annum due February 2024 – November 2026 371,091 469,087 Current Portion of Long-term debt (112,188 ) (120,284 ) Balance at end of period $ 259,903 $ 338,803 | |
Previously Reported [Member] | ||
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 December 31, 2021 December 31, 2020 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 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. All principal and accrued interest converted during 2021 except one remaining $ 50,000 debenture and accrued interest of $ 12,079 . 50,000 346,250 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. All principal and accrued interest converted during 2021. - 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 $ 50,000 $ 865,988 The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT Loans from Shanghai Bank with interest rates 1.00 % - 1.5 % per annum due February 2024 – November 2026 469,087 - Current Portion of Long-term debt (120,284 ) - Balance at end of period $ 338,803 - |
PREFERRED STOCK
PREFERRED STOCK | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
PREFERRED STOCK | NOTE 4 PREFERRED STOCK We are currently authorized to issue up to 12,500,000 shares of preferred stock, par value $ 0.00001 per share, 1,250,000 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. | |
Previously Reported [Member] | ||
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 December 31, 2021, we have no outstanding shares of Series B Preferred Stock. |
EQUITY
EQUITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
EQUITY | NOTE 5 EQUITY Common Stock We are authorized to issue up to 37,500,000 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. | |
Previously Reported [Member] | ||
EQUITY | NOTE 5 EQUITY Common Stock We are authorized to issue up to 300,000,000 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. |
STOCK OPTION PLAN AND WARRANTS
STOCK OPTION PLAN AND WARRANTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 187,500 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 125,000 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 375,000 shares. In 2012, 2010 Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 1,625,000 shares. The shares issuable pursuant to the 2010 Option Plan were 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 1.25 million option shares authorized with similar terms and conditions to the 2010 Option Plan. This plan has not been approved by the shareholders. As of December 31, 2021, there were 893,438 options outstanding under all the option plans. 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, 2021, we had approximately $ 4,500 unrecognized stock-based compensation. Stock option transactions during 2021 and 2020 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 952,025 $ 5.76 842,650 $ 6.24 Granted 141,875 11.76 312,500 2.96 Exercised (62,500 ) 4.72 (158,750 ) 1.28 Forfeited or Cancelled (137,963 ) 7.44 (44,375 ) 8.96 Outstanding at End of Year 893,438 6.80 952,025 5.76 Options Exercisable at Year-End 891,563 6.80 952,025 5.76 Weighted-Average Fair Value of Options Granted During the Year $ 5.68 $ 2.00 Information with respect to stock options outstanding and exercisable at December 31, 2021 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.32 - $ 16.24 893,438 6.2 $ 6.80 891,563 $ 6.80 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 STOCK OPTIONS, VALUATION ASSUMPTIONS 2021 2020 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 1.00 % 0.18 % Warrant transactions during 2021 and 2020 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 543,754 $ 3.04 695,439 $ 3.04 Granted 509,732 2.96 123,732 2.80 Exercised (78,102 ) 2.80 Forfeited or Cancelled (103,125 ) 2.80 (275,416 ) 2.88 Outstanding at End of Year 872,259 3.04 543,754 3.04 Warrant Exercisable at Year-End 872,259 3.04 543,754 3.04 Weighted-Average Fair Value of Warrants Granted During the Year $ 1.12 - $ 3.92 $ 0.80 - $ 2.08 Information with respect to warrants outstanding and exercisable at December 31, 2021 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 2.80 - $ 13.20 872,259 1.5 $ 3.04 872,259 $ 3.04 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 STOCK WARRANT, VALUATION ASSUMPTIONS 2021 2020 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 - 1.00 % 0.19 - 1.59 % | |
Previously Reported [Member] | ||
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. As of December 31, 2021, there were 7,147,500 options outstanding under all the option plans. 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, 2021, we had approximately $ 4,500 unrecognized stock-based compensation. Stock option transactions during 2021 and 2020 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 7,616,200 $ 0.72 6,741,200 $ 0.78 Granted 1,135,000 1.47 2,500,000 0.37 Exercised (500,000 ) 0.59 (1,270,000 ) 0.16 Forfeited or Canceled (1,103,700 ) 0,93 (355,000 ) 1.12 Outstanding at End of Year 7,147,500 0.85 7,616,200 0.72 Options Exercisable at Year-End 7,132,500 0.85 7,616,200 0.72 Weighted-Average Fair Value of Options Granted During the Year $ 0.71 $ 0.25 Information with respect to stock options outstanding and exercisable at December 31, 2021 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.04 - $ 2.03 7,147,500 6.2 $ 0.85 7,132,500 $ 0.85 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 STOCK OPTIONS, VALUATION ASSUMPTIONS 2021 2020 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 1.00 % 0.18 % Warrant transactions during 2021 and 2020 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 4,350,034 $ 0.38 5,563,509 $ 0.38 Granted 4,077,857 0.37 989,856 0.35 Exercised (624,819 ) 0.35 Forfeited or Canceled (825,000 ) 0.35 (2,203,331 ) 0.36 Outstanding at End of Year 6,978,072 0.38 4,350,034 0.38 Warrant Exercisable at Year-End 6,978,072 0.38 4,350,034 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.14 - $ 0.49 $ 0.10 - $ 0.26 Information with respect to warrants outstanding and exercisable at December 31, 2021 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Range of Number Outstanding at Weighted- Weighted- Number Exercisable at Weighted- $ 0.35 - $ 1.65 6,978,072 1.5 $ 0.38 6,978,072 $ 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 STOCK WARRANT, VALUATION ASSUMPTIONS 2021 2020 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 - 1.00 % 0.19 - 1.59 % |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 2021 2020 Tax Operating Loss Carryforward - USA $ 10,800,000 $ 9,800,000 Other - - Valuation Allowance - USA (10,800,000 ) (9,800,000 ) Deferred Tax Assets, Net $ - $ - The valuation allowance increased approximately $ 0.5 million, primarily as a result of the increased net operating losses of our U.S.- based segment. As of December 31, 2021, we had federal net operating loss carryforwards for income tax purposes of approximately $ 29 million which will begin to expire in 2025 . We also have Arizona net operating loss carryforwards for income tax purposes of approximately $ 2.0 million which expire after five years. 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 2021 $ 1,000,000 2041 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. | |
Previously Reported [Member] | ||
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 2021 2020 Tax Operating Loss Carryforward - USA $ 10,800,000 $ 9,800,000 Other - - Valuation Allowance - USA (10,800,000 ) (9,800,000 ) Deferred Tax Assets, Net $ - $ - The valuation allowance increased approximately $ 0.5 million, primarily as a result of the increased net operating losses of our U.S.- based segment. As of December 31, 2021, we had federal net operating loss carryforwards for income tax purposes of approximately $ 29 million which will begin to expire in 2025 . We also have Arizona net operating loss carryforwards for income tax purposes of approximately $ 2.0 million which expire after five years. 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 2021 $ 1,000,000 2041 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 six months ended June 30, 2022 and 2021 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 six months ended June 30, 2022 and 2021. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED June 30, 2022 June 30, 2021 (Unaudited) Basic EPS Net Loss $ (1,731,698 ) $ (1,322,297 ) Weighted Average Shares 10,676,647 8,417,157 Basic Loss Per Share $ (0.16 ) $ (0.16 ) | |
Previously Reported [Member] | ||
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, 2021 and 2020 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 December 31, 2021 and 2020. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED December 31, December 31, Basic EPS Net Loss $ (2,998,644 ) $ (1,602,303 ) Weighted Average Shares 71,522,940 51,718,895 Basic Loss Per Share $ (0.04 ) $ (0.03 ) |
CONTINGENT LIABILITIES_TAIWAN
CONTINGENT LIABILITIES—TAIWAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
CONTINGENT LIABILITIES—TAIWAN | NOTE 9 CONTINGENT LIABILITIES—TAIWAN Pursuant to certain contracts with Siemens, Chung-Hsin Electric and Machinery Manufacturing Corp, Iveda Taiwan is required to provide after-project services. If Iveda Taiwan fails to provide these after-project services in the future, other parties of the related contract would have recourse. The financial exposure to Iveda Taiwan in the event of failure to provide after- project services in the future as of December 31, 2021 is $ 61,435 . | |
Previously Reported [Member] | ||
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 December 31, 2021 is $ 61,435 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SUBSEQUENT EVENTS | NOTE 10 SUBSEQUENT EVENTS The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements are available to be issued. Any material events that occur between the balance sheet date and the date that the financial statements were available for issuance are disclosed as subsequent events, while the financial statements are adjusted to reflect any conditions that existed at the balance sheet date. Based upon this review, except as disclosed within the footnotes or as discussed below, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements . On August 9, 2022, the Company and certain accredited investors (each an “Investor” and collectively, the “Investors”) entered into a securities purchase agreement (the “Securities Purchase Agreement”) pursuant to which the Company agreed to sell and issue to the Investors in a private placement (the “Private Placement”) (i) an aggregate of 1,100,000 shares (the “Shares”) of the Company’s common stock, par value $ 0.00001 per share (the “Common Stock”), at a purchase price of $ 1.52 per share and associated warrant, (ii) an aggregate of 3,289,474 warrants to purchase Common Stock at an execution price of $ 1.40 per warrant share which are immediately exercisable and remain exercisable for a term of five and a half ( 5.5 ) years from the issuance (the “Common Warrants”), and (iii) in lieu of shares of Common Stock, 2,189,474 pre-funded warrants to purchase Common Stock, with an exercise price of $ 0,0001 per share of Common Stock, which are immediately exercisable and remain exercisable until exercised in full (the “Pre-Funded Warrants,” and together with the “Common Warrants, the “Warrants,” and collectively with the Shares, the “Securities”). The exercise prices of the Warrants are subject to adjustment for stock splits, reverse splits, and similar capital transactions as described in the Warrants. The Private Placement closed on August 11, 2022. The Company received gross proceeds from the Private Placement of approximately five million dollars ($ 5,000,000 ), before deducting offering expenses payable by the Company. The Company intends to use the net proceeds of the Private Placement for working capital and other general corporate purposes. The Company engaged Maxim Group LLC (“Maxim”) as the Company’s placement agent for the Private Placement pursuant to a Placement Agency Agreement (the “PAA”) dated as of August 9, 2022. Pursuant to the PAA, the Company agreed to pay Maxim a cash placement fee equal to 7.0% of the gross proceeds of the Private Placement, plus reimbursement of certain expenses and legal fees. In connection with the Private Placement, the Company and the Investors entered into a Registration Rights Agreement dated August 9, 2022 (the “Registration Rights Agreement”), providing for the registration for resale of the Securities (including the shares of Common Stock underlying the Warrants) that are not then registered on an effective registration statement, pursuant to a registration statement (the “Registration Statement”) to be filed with the Securities and Exchange Commission (the “SEC”) on or prior to August 24, 2022 (the “Filing Date”). The Company has agreed to use its best efforts to cause the Registration Statement to be declared effective as soon as possible, but in no event later than forty-five (45) days of the closing of the Private Placement (or seventy-five (75) days in the event of a full review of the Registration Statement by the SEC) (the “Effectiveness Date”), and to keep the Registration Statement continuously effective for a period that extends from the first date on which the SEC issues an order of effectiveness in relation to the Registration Statement until such date that all registrable securities (as such term is defined in the Registration Rights Agreement) covered by the Registration Statement have been sold thereunder or pursuant to Rule 144 or may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144. | |
Previously Reported [Member] | ||
SUBSEQUENT EVENTS | NOTE 10 SUBSEQUENT EVENTS |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 provides 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. Users can set up alerts instead of watching hours of video recording after-the-fact. Iveda offers many IoT sensors and devices for a variety of applications such as energy management, smart home, smart building, smart community, and patient/elder care. Together, 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 a dashboard for all of Iveda’s platforms for central device management. 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. Iveda’s Utilus smart pole technology is a smart power management and wireless mesh communications network deployed on new or existing light pole structures. The Utilus network uses WiFi, 4G and 5G small cell capabilities, and other wireless protocols to provide distributed video surveillance with AI video search technology and remote management of local devices such as trackers, water meters, electrical meters, valves, circuit breakers and sensors. In the last few years, smart city has been a hot topic among municipalities 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 have 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 originally 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. Our Taiwan-based subsidiary Iveda Taiwan, formerly known as MEGAsys, our wholly-owned subsidiary, 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. Iveda Taiwan combines security surveillance products, software, and services to provide integrated security solutions to the end user. Through Iveda Taiwan, we have access not only to Asian markets but also to Asian manufacturers and engineering expertise. Iveda Taiwan 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 Taiwan-based Sole Vision Technologies (dba Iveda Taiwan). We consolidate our financial statements with the financial statements of Iveda Taiwan. 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 $ 43 million from January 2005 through June 30, 2021 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 | 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 not make any impairment for the six months ended June 30, 2022 and year ended December 31, 2021. | |
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. | |
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. | |
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 Iveda Taiwan 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, annual license 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. | |
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. One customer (Chunghwa Telecom) represented approximately 95 % of total accounts receivable of $ 492,752 as of December 31, 2021. This customer is a longtime customer, and we do not expect any problem with the collectability of these accounts receivable. We had revenue from one customer with greater than 10 % of total revenues during the six months ended June 30, 2022 and two customers for the year ended December 31, 2021 that represented approximately 53 % and 55 % of total revenues, respectively. We had $ 527,256 revenues ( 60 %) from Chunghwa Telecom of total revenues of $ 882,269 for the six months ended June 30, 2022. We had $ 786,686 revenues ( 41 %) from Chunghwa Telecom and $ 260,946 revenues ( 14 %) from Taiwan Stock Exchange Corporation of total revenues of $ 1,917,848 for the year ended December 31, 2021. No other customers represented greater than 10 % of total revenues in the six months ended June 30, 2022 and year ended December 31, 2021. | |
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. | |
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 June 30, 2022 and December 31, 2021 no allowance for uncollectible accounts was deemed necessary for our U.S.-based segment. | |
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. | |
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. | |
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 as of June 30, 2022 and December 31, 2021. | |
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 six months ended June 30, 2022 was $ 8,959 and for the year ended December 31, 2021 was $ 15,016 . | |
Intangible Assets | Intangible Assets Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of Iveda Taiwan. Such assets are fully amortized at December 31, 2021. Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 Total $ 6,666 | |
Deposits—Long-Term | Deposits—Long-Term Long-term deposits consist of a deposit related to the leases of Iveda Taiwan’ 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 2021, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2021. 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 2017 to 2021 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 2017 to 2021 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. | |
Accounts and Other Payables | Accounts and Other Payables SCHEDULE OF ACCOUNTS AND OTHER PAYABLES June 30, 2022 December 31, 2021 Accounts Payable $ 375,774 $ 62,889 Accrued Expenses 1,595,660 2,834,726 Deferred Revenue and Customer Deposits 158,948 58,211 Accounts and Other Payables $ 2,130,382 $ 2,955,826 | |
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 June 30, 2022 and December 31, 2021, 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 $93,900 and $801,908 of stock-based compensation expense for the six months ended June 30, 2022 and December 31, 2021, respectively. | |
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 June 30, 2022 and December 31, 2021. 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 June 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 111,948 $ 3,799,496 Republic of China (Taiwan) $ 770,322 $ 771,377 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 | Reclassification Certain amounts in 2021 have been reclassified to conform to the 2022 presentation. | |
New Accounting Standards | New Accounting Standards No new relevant accounting standards | |
Previously Reported [Member] | ||
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, 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. | |
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. | |
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 years ended December 31, 2021 and 2020. | |
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. | |
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. | |
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. | |
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. | |
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. One customer (Chunghwa Telecom) represented approximately 95% of total accounts receivable of $ 492,752 as of December 31, 2021 and 77% of total accounts receivable of $ 76,063 as of December 31, 2020. This customer is a longtime customer, and we don’t expect any problem with collectability of these accounts receivable. We had revenue from two customers with greater than 10% of total revenues during 2021 that represented approximately 55% of total revenues. We had $ 786,686 revenues ( 41% ) from Chunghwa Telecom and $ 260,946 revenues ( 14% ) from Taiwan Stock Exchange Corporation of total revenues of $ 1,917,848 . 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 years ended December 31, 2021 and 2020. | |
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. | |
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 December 31, 2021 and 2020, respectively, an allowance for uncollectible accounts of $ 0 and $ 0 was deemed necessary for our U.S.-based segment. | |
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. | |
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. | |
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 December 31, 2021 and 2020, respectively. | |
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 years ended December 31, 2021 and 2020 was $ 15,016 and $ 25,695 , respectively. | |
Intangible Assets | Intangible Assets Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 Total $ 6,666 | |
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. | |
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 2021, we reevaluated the valuation allowance for deferred tax assets and determined that no current benefits should be recognized for the year ended December 31, 2021. 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 2017 to 2021 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 2017 to 2021 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. | |
Accounts and Other Payables | Accounts and Other Payables SCHEDULE OF ACCOUNTS AND OTHER PAYABLES December 31, 2021 December 31, 2020 Accounts Payable $ 62,889 $ 405,819 Accrued Expenses 2,834,726 2,751,127 Deferred Revenue and Customer Deposits 58,211 864 Accounts and Other Payables $ 2,955,826 $ 3,157,810 | |
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 $ 801,908 and $ 165,167 of stock-based compensation expense for the years ended December 31, 2021 and 2020, respectively. | |
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 December 31, 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 | 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, 2021 Net Revenue Net Assets (Liabilities) United States $ 133,678 $ (1,586,925 ) Republic of China (Taiwan) $ 1,784,170 $ 809,647 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 | Reclassification Certain amounts in 2020 have been reclassified to conform to the 2021 presentation. | |
New Accounting Standards | New Accounting Standards No new relevant accounting standards |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES | SCHEDULE OF ACCOUNTS AND OTHER PAYABLES June 30, 2022 December 31, 2021 Accounts Payable $ 375,774 $ 62,889 Accrued Expenses 1,595,660 2,834,726 Deferred Revenue and Customer Deposits 158,948 58,211 Accounts and Other Payables $ 2,130,382 $ 2,955,826 | |
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS | 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 June 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 111,948 $ 3,799,496 Republic of China (Taiwan) $ 770,322 $ 771,377 | |
Previously Reported [Member] | ||
SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS | Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 Total $ 6,666 | Intangible assets consist of trademarks and other intangible assets associated with the purchase price allocation of MEGAsys. Such assets are fully amortized at December 31, 2021. Current year amortization of trademarks was as follows: SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS 2021 $ 6,666 Total $ 6,666 |
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES | SCHEDULE OF ACCOUNTS AND OTHER PAYABLES December 31, 2021 December 31, 2020 Accounts Payable $ 62,889 $ 405,819 Accrued Expenses 2,834,726 2,751,127 Deferred Revenue and Customer Deposits 58,211 864 Accounts and Other Payables $ 2,955,826 $ 3,157,810 | |
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS | 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, 2021 Net Revenue Net Assets (Liabilities) United States $ 133,678 $ (1,586,925 ) Republic of China (Taiwan) $ 1,784,170 $ 809,647 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SCHEDULE OF RELATED PARTY TRANSACTIONS | SCHEDULE OF RELATED PARTY TRANSACTIONS June 30, 2022 (Unaudited) December 31, 2021 200,000 200,000 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 2,500 shares of our common stock with an exercise price of $ 6.16 per share. This debenture was extended to December 31, 2022. 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 1,250 shares of common stock at an exercise price of $ 6.16 per share This debenture was extended to December 31, 2022 . $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 300,000 Less Current Portion (300,000 ) (300,000 ) Total Long-Term $ - $ - | |
Previously Reported [Member] | ||
SCHEDULE OF RELATED PARTY TRANSACTIONS | SCHEDULE OF RELATED PARTY TRANSACTIONS December 31, 2021 December 31, 2020 During 2020 one of the three MEGAsys directors loaned money to MEGAsys at no interest. - 37,177 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, 2022 . 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, 2022 . $ 100,000 $ 100,000 Total Due to Related Parties $ 300,000 512,711 Less Current Portion (300,000 ) (512,711 ) Less: Debt Discount - - Total Long-Term $ - $ - |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SCHEDULE OF SHORT-TERM DEBT | The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT June 30, 2022 (Unaudited) December 31, 2021 $ 50,000 $ 50,000 Debenture agreements with a shareholder at 10 % interest rate beginning in February 2019 - December 2019, one year maturity, were due February 2020 – December 2020 , principal and interest convertible at $ 2.80 per share into common stock at the option of the holder until repaid. All principal and accrued interest converted during 2021 except one remaining $ 50,000 debenture and accrued interest of $ 12,079 . $ 50,000 $ 50,000 Loan Agreement with Shanghai Bank at 2.68 % interest rate per annum due January 2023 . 67,313 - Loan agreement with Hua Nam bank at 2.42 % interest rate per annum due September 2022 . 100,969 - Balance at end of period $ 218,282 $ 50,000 | |
SCHEDULE OF LONG-TERM DEBT | Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT June 30, 2022 December 31. 2021 371,091 469,087 Loans from Shanghai Bank with interest rates 1.00 % - 1.5 % per annum due February 2024 – November 2026 371,091 469,087 Current Portion of Long-term debt (112,188 ) (120,284 ) Balance at end of period $ 259,903 $ 338,803 | |
Previously Reported [Member] | ||
SCHEDULE OF SHORT-TERM DEBT | The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT December 31, 2021 December 31, 2020 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 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. All principal and accrued interest converted during 2021 except one remaining $ 50,000 debenture and accrued interest of $ 12,079 . 50,000 346,250 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. All principal and accrued interest converted during 2021. - 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 $ 50,000 $ 865,988 | |
SCHEDULE OF LONG-TERM DEBT | The Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT Loans from Shanghai Bank with interest rates 1.00 % - 1.5 % per annum due February 2024 – November 2026 469,087 - Current Portion of Long-term debt (120,284 ) - Balance at end of period $ 338,803 - |
STOCK OPTION PLAN AND WARRANTS
STOCK OPTION PLAN AND WARRANTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions during 2021 and 2020 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 952,025 $ 5.76 842,650 $ 6.24 Granted 141,875 11.76 312,500 2.96 Exercised (62,500 ) 4.72 (158,750 ) 1.28 Forfeited or Cancelled (137,963 ) 7.44 (44,375 ) 8.96 Outstanding at End of Year 893,438 6.80 952,025 5.76 Options Exercisable at Year-End 891,563 6.80 952,025 5.76 Weighted-Average Fair Value of Options Granted During the Year $ 5.68 $ 2.00 | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE | Information with respect to stock options outstanding and exercisable at December 31, 2021 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.32 - $ 16.24 893,438 6.2 $ 6.80 891,563 $ 6.80 | |
SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS | 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 STOCK OPTIONS, VALUATION ASSUMPTIONS 2021 2020 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 1.00 % 0.18 % | |
SCHEDULE OF WARRANT TRANSACTIONS | Warrant transactions during 2021 and 2020 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 543,754 $ 3.04 695,439 $ 3.04 Granted 509,732 2.96 123,732 2.80 Exercised (78,102 ) 2.80 Forfeited or Cancelled (103,125 ) 2.80 (275,416 ) 2.88 Outstanding at End of Year 872,259 3.04 543,754 3.04 Warrant Exercisable at Year-End 872,259 3.04 543,754 3.04 Weighted-Average Fair Value of Warrants Granted During the Year $ 1.12 - $ 3.92 $ 0.80 - $ 2.08 | |
SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE | Information with respect to warrants outstanding and exercisable at December 31, 2021 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 2.80 - $ 13.20 872,259 1.5 $ 3.04 872,259 $ 3.04 | |
SCHEDULE OF STOCK WARRANT, VALUATION ASSUMPTIONS | 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 STOCK WARRANT, VALUATION ASSUMPTIONS 2021 2020 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 - 1.00 % 0.19 - 1.59 % | |
Previously Reported [Member] | ||
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions during 2021 and 2020 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 7,616,200 $ 0.72 6,741,200 $ 0.78 Granted 1,135,000 1.47 2,500,000 0.37 Exercised (500,000 ) 0.59 (1,270,000 ) 0.16 Forfeited or Canceled (1,103,700 ) 0,93 (355,000 ) 1.12 Outstanding at End of Year 7,147,500 0.85 7,616,200 0.72 Options Exercisable at Year-End 7,132,500 0.85 7,616,200 0.72 Weighted-Average Fair Value of Options Granted During the Year $ 0.71 $ 0.25 | |
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE | Information with respect to stock options outstanding and exercisable at December 31, 2021 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted- Weighted- Number Weighted- $ 0.04 - $ 2.03 7,147,500 6.2 $ 0.85 7,132,500 $ 0.85 | |
SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS | 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 STOCK OPTIONS, VALUATION ASSUMPTIONS 2021 2020 Expected Life 5 yrs 5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 1.00 % 0.18 % | |
SCHEDULE OF WARRANT TRANSACTIONS | Warrant transactions during 2021 and 2020 were as follows: SCHEDULE OF WARRANT TRANSACTIONS 2021 2020 Shares Weighted- Shares Weighted- Outstanding at Beginning of Year 4,350,034 $ 0.38 5,563,509 $ 0.38 Granted 4,077,857 0.37 989,856 0.35 Exercised (624,819 ) 0.35 Forfeited or Canceled (825,000 ) 0.35 (2,203,331 ) 0.36 Outstanding at End of Year 6,978,072 0.38 4,350,034 0.38 Warrant Exercisable at Year-End 6,978,072 0.38 4,350,034 0.38 Weighted-Average Fair Value of Warrants Granted During the Year $ 0.14 - $ 0.49 $ 0.10 - $ 0.26 | |
SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE | Information with respect to warrants outstanding and exercisable at December 31, 2021 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE Warrants Outstanding Warrants Exercisable Range of Number Outstanding at Weighted- Weighted- Number Exercisable at Weighted- $ 0.35 - $ 1.65 6,978,072 1.5 $ 0.38 6,978,072 $ 0.38 | |
SCHEDULE OF STOCK WARRANT, VALUATION ASSUMPTIONS | 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 STOCK WARRANT, VALUATION ASSUMPTIONS 2021 2020 Expected Life 1.5 yrs 1.5 yrs Dividend Yield 0 % 0 % Expected Volatility 90 % 90 % Risk-Free Interest Rate 0.18 - 1.00 % 0.19 - 1.59 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
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 2021 2020 Tax Operating Loss Carryforward - USA $ 10,800,000 $ 9,800,000 Other - - Valuation Allowance - USA (10,800,000 ) (9,800,000 ) Deferred Tax Assets, Net $ - $ - | |
SUMMARY OF OPERATING LOSS CARRYFORWARDS | SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2021 $ 1,000,000 2041 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 | |
Previously Reported [Member] | ||
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 2021 2020 Tax Operating Loss Carryforward - USA $ 10,800,000 $ 9,800,000 Other - - Valuation Allowance - USA (10,800,000 ) (9,800,000 ) Deferred Tax Assets, Net $ - $ - | |
SUMMARY OF OPERATING LOSS CARRYFORWARDS | SUMMARY OF OPERATING LOSS CARRYFORWARDS Year Ending Net Operating Year of December 31, Loss: Expiration 2021 $ 1,000,000 2041 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) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED June 30, 2022 June 30, 2021 (Unaudited) Basic EPS Net Loss $ (1,731,698 ) $ (1,322,297 ) Weighted Average Shares 10,676,647 8,417,157 Basic Loss Per Share $ (0.16 ) $ (0.16 ) | |
Previously Reported [Member] | ||
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED December 31, December 31, Basic EPS Net Loss $ (2,998,644 ) $ (1,602,303 ) Weighted Average Shares 71,522,940 51,718,895 Basic Loss Per Share $ (0.04 ) $ (0.03 ) |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION OF TRADEMARKS (Details) - Previously Reported [Member] | Dec. 31, 2021 USD ($) |
2021 | $ 6,666 |
Total | $ 6,666 |
SCHEDULE OF ACCOUNTS AND OTHER
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable | $ 375,774 | $ 62,889 | |
Accrued Expenses | 1,595,660 | 2,834,726 | |
Deferred Revenue and Customer Deposits | 158,948 | 58,211 | |
Accounts and Other Payables | $ 2,130,382 | 2,955,826 | |
Previously Reported [Member] | |||
Accounts Payable | 62,889 | $ 405,819 | |
Accrued Expenses | 2,834,726 | 2,751,127 | |
Deferred Revenue and Customer Deposits | 58,211 | 864 | |
Accounts and Other Payables | $ 2,955,826 | $ 3,157,810 |
SCHEDULE OF NET REVENUE AND NET
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Net Revenue | $ 882,269 | $ 1,917,848 |
Previously Reported [Member] | ||
Net Revenue | 1,917,848 | |
UNITED STATES | ||
Net Revenue | 111,948 | |
Net Assets (Liabilities) | 3,799,496 | |
UNITED STATES | Previously Reported [Member] | ||
Net Revenue | 133,678 | |
Net Assets (Liabilities) | (1,586,925) | |
CHINA | ||
Net Revenue | 770,322 | |
Net Assets (Liabilities) | $ 771,377 | |
CHINA | Previously Reported [Member] | ||
Net Revenue | 1,784,170 | |
Net Assets (Liabilities) | $ 809,647 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 TWD ($) | |
Product Information [Line Items] | |||||
Accumulated deficit | $ 43,093,099 | $ 43,000,000 | $ 41,361,401 | ||
Cash, FDIC Insured Amount | $ 3 | ||||
Revenues | 882,269 | 1,917,848 | |||
Inventory reserve | 0 | 0 | |||
Depreciation expense | 8,959 | 15,016 | |||
Stock-based compensation expense | 93,900 | $ 88,000 | |||
Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Accumulated deficit | 41,361,401 | $ 38,322,456 | |||
Revenues | 1,917,848 | ||||
Inventory reserve | 0 | 0 | |||
Depreciation expense | 15,016 | 25,695 | |||
Impairment of long-lived assets | 0 | 0 | |||
CDIC insurance limit | 3,000,000 | ||||
Allowance for doubtful accounts | 0 | 0 | |||
Stock-based compensation expense | 801,908 | 165,167 | |||
Customer One [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Account receivable | 492,752 | 76,063 | |||
Chunghwa Telecom [Member] | |||||
Product Information [Line Items] | |||||
Account receivable | 492,752 | ||||
Revenues | $ 527,256 | 786,686 | |||
Chunghwa Telecom [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 786,686 | 414,415 | |||
Taiwan Stock Exchange Corporation [Member] | |||||
Product Information [Line Items] | |||||
Revenues | 260,946 | ||||
Taiwan Stock [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Revenues | $ 260,946 | ||||
Siemens [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Revenues | $ 159,048 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 95% | 77% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Chunghwa Telecom [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 95% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | Minimum [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 10% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 53% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 55% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Other Customers [Member] | Minimum [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 10% | 10% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Other Customers [Member] | Minimum [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 10% | 10% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 55% | 39% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Chunghwa Telecom [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 60% | 41% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Chunghwa Telecom [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 41% | 28% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Taiwan Stock Exchange Corporation [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 14% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Taiwan Stock [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 14% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Siemens [Member] | Previously Reported [Member] | |||||
Product Information [Line Items] | |||||
Percentage of concentration risk | 11% |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | $ 300,000 | $ 300,000 | |
Less Current Portion | (300,000) | (300,000) | |
Total Long-Term | |||
Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 300,000 | $ 512,711 | |
Less Current Portion | (300,000) | (512,711) | |
Total Long-Term | |||
Less: Debt Discount | |||
Mr Gregory Omi [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 200,000 | 200,000 | |
Mr Gregory Omi [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 200,000 | 200,000 | |
Mr Robert Gillen [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | $ 100,000 | 100,000 | |
Mr Robert Gillen [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 100,000 | 100,000 | |
MEGA sys Directors [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 37,177 | ||
Quadrant International LLC [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 45,534 | ||
Mr Alex Kuo [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | 30,000 | ||
Mr Kus Wife [Member] | Previously Reported [Member] | |||
Related Party Transaction [Line Items] | |||
Total Due to Related Parties | $ 100,000 |
SCHEDULE OF RELATED PARTY TRA_2
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) (Parenthetical) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 10, 2014 | Sep. 08, 2014 | Jun. 20, 2013 | Oct. 18, 2018 | Aug. 28, 2014 | Nov. 19, 2012 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||||||
Options granted | 141,875 | 312,500 | ||||||||
Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Options granted | 1,135,000 | 2,500,000 | ||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 200,000 | |||||||||
Debt interest rate | 9.50% | |||||||||
Options granted | 2,500 | |||||||||
Share price | $ 6.16 | |||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 200,000 | |||||||||
Debt interest rate | 9.50% | |||||||||
Maturity date | Dec. 31, 2022 | |||||||||
Options granted | 20,000 | |||||||||
Share price | $ 0.77 | |||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | Extended Maturity [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maturity date | Dec. 31, 2016 | |||||||||
Debenture Agreement [Member] | Mr Gregory Omi [Member] | Extended Maturity [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
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% | |||||||||
Maturity date | Dec. 31, 2022 | Dec. 19, 2014 | ||||||||
Options granted | 1,250 | |||||||||
Share price | $ 6.16 | |||||||||
Interest expense debt | $ 5,000 | |||||||||
Debenture Agreement [Member] | Mr Robert Gillen [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 100,000 | |||||||||
Debt interest rate | 10% | |||||||||
Maturity date | Dec. 31, 2022 | Dec. 19, 2014 | ||||||||
Options granted | 10,000 | |||||||||
Share price | $ 0.77 | |||||||||
Interest expense debt | $ 5,000 | |||||||||
Debenture Agreement [Member] | Mr Robert Gillen [Member] | Extended Maturity [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maturity date | Dec. 31, 2015 | Jan. 05, 2015 | ||||||||
Debenture Agreement [Member] | Mr Robert Gillen [Member] | Extended Maturity [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maturity date | Dec. 31, 2015 | |||||||||
Debenture Agreement [Member] | Quadrant International LLC [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 50,000 | |||||||||
Debt interest rate | 0% | |||||||||
Maturity date | Dec. 31, 2019 | |||||||||
Debenture Agreement [Member] | Mr Alex Kuo [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 30,000 | |||||||||
Debt interest rate | 9.50% | |||||||||
Maturity date | Dec. 31, 2015 | |||||||||
Options granted | 3,000 | |||||||||
Share price | $ 0.77 | |||||||||
Debenture Agreement [Member] | Mr Kus Wife [Member] | Previously Reported [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt principal amount | $ 100,000 | |||||||||
Debt interest rate | 9.50% | |||||||||
Maturity date | Dec. 31, 2015 | |||||||||
Options granted | 10,000 | |||||||||
Share price | $ 0.77 |
SCHEDULE OF SHORT-TERM DEBT (De
SCHEDULE OF SHORT-TERM DEBT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | $ 218,282 | $ 50,000 | |
Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 50,000 | $ 865,988 | |
Various Shareholders [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 50,000 | 50,000 | |
Various Shareholders [Member] | Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 50,000 | 346,250 | |
Shanghai Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 67,313 | ||
Hua Nan Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | $ 100,969 | ||
Hua Nan Bank [Member] | Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 71,238 | ||
Shareholder [Member] | Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 100,000 | ||
Various shareholders One [Member] | Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Short Term Debt | 313,500 | ||
Shareholder One [Member] | Previously Reported [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 | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Jan. 31, 2020 | Feb. 28, 2019 | Apr. 30, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shanghai Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.68% | |||||||
Debt maturity date, description | due January 2023 | |||||||
Shanghai Bank [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity date, description | February 2024 | |||||||
Shanghai Bank [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity date, description | November 2026 | |||||||
Shanghai Bank [Member] | Previously Reported [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity date, description | February 2024 | |||||||
Shanghai Bank [Member] | Previously Reported [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity date, description | November 2026 | |||||||
Hua Nan Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.42% | |||||||
Debt maturity date, description | due September 2022 | |||||||
Hua Nan Bank [Member] | Previously Reported [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.42% | 2.61% | ||||||
Debt maturity date, description | due December 2021 | February - April 2020 | ||||||
Shareholder [Member] | Previously Reported [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 50% | |||||||
Debt maturity date, description | six month maturity, was due October 2018 | |||||||
Debt conversion price | $ 0.35 | |||||||
Proceeds from short term debt | $ 100,000 | |||||||
Shareholder One [Member] | Previously Reported [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0% | |||||||
Debt maturity date, description | September 2020 | |||||||
Debenture Agreement [Member] | Various Shareholders [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10% | |||||||
Debt maturity date, description | one year maturity, were due February 2020 – December 2020 | |||||||
Debt conversion price | $ 2.80 | |||||||
Debt principal amount | $ 50,000 | |||||||
Accrued interest | $ 12,079 | |||||||
Debenture Agreement [Member] | Various Shareholders [Member] | Previously Reported [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10% | |||||||
Debt maturity date, description | beginning in February 2019 | |||||||
Debt conversion price | $ 0.35 | |||||||
Debt principal amount | $ 50,000 | |||||||
Debenture and accrued interest | $ 12,079 | |||||||
Debenture Agreement [Member] | Various shareholders One [Member] | Previously Reported [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt conversion price | $ 0.35 | |||||||
Debenture Agreement [Member] | Various shareholders One [Member] | Previously Reported [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 10% | |||||||
Debenture Agreement [Member] | Various shareholders One [Member] | Previously Reported [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 20% |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | $ 259,903 | $ 338,803 | |
Current Portion of Long-term debt | (112,188) | (120,284) | |
Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | 338,803 | ||
Current Portion of Long-term debt | (120,284) | ||
Shanghai Bank [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | $ 371,091 | 469,087 | |
Shanghai Bank [Member] | Previously Reported [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long Term Debt | $ 469,087 |
SCHEDULE OF LONG-TERM DEBT (D_2
SCHEDULE OF LONG-TERM DEBT (Details) (Parenthetical) - Shanghai Bank [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument, maturity date, description | due January 2023 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 1% | |
Debt instrument, maturity date, description | February 2024 | |
Minimum [Member] | Previously Reported [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 1% | |
Debt instrument, maturity date, description | February 2024 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 1.50% | |
Debt instrument, maturity date, description | November 2026 | |
Maximum [Member] | Previously Reported [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 1.50% | |
Debt instrument, maturity date, description | November 2026 |
PREFERRED STOCK (Details Narrat
PREFERRED STOCK (Details Narrative) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2022 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 12,500,000 | 12,500,000 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Previously Reported [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 1,250,000 | ||
Series A Preferred Stock [Member] | Previously Reported [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, dividend rate | 9.50% | ||
Shares issued price per share | $ 1 | ||
Preferred stock, conversion price | $ 1 | ||
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 500 | 500 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Series B Preferred Stock [Member] | Previously Reported [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 500 | 500 | |
Preferred stock, par value | $ 0.00001 | $ 0.00001 | |
Preferred stock, dividend rate | 9.50% | ||
Shares issued price per share | $ 10,000 | ||
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) - $ / shares | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized | 37,500,000 | 37,500,000 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common stock, voting rights | 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 | ||
Previously Reported [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.00001 | $ 0.00001 | |
Common Stock [Member] | Previously Reported [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 300,000,000 | ||
Common stock, par value | $ 0.00001 |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares, Outstanding at Beginning of Year | 952,025 | 842,650 | 842,650 | |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 5.76 | $ 6.24 | $ 6.24 | |
Shares, Granted | 141,875 | 312,500 | ||
Weighted-Average Exercise Price, Granted | $ 11.76 | $ 2.96 | ||
Shares, Exercised | (62,500) | (158,750) | ||
Weighted-Average Exercise Price, Exercised | $ 4.72 | $ 1.28 | ||
Shares, Forfeited or Canceled | (137,963) | (44,375) | ||
Weighted-Average Exercise Price, Forfeited or Canceled | $ 7.44 | $ 8.96 | ||
Shares, Outstanding at End of Year | 893,438 | 952,025 | 952,025 | 842,650 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 6.80 | $ 5.76 | $ 5.76 | $ 6.24 |
Shares, Options Exercisable at End of Year | 891,563 | 952,025 | ||
Weighted-Average Exercise Price, Options Exercisable at End of Year | $ 6.80 | $ 5.76 | ||
Weighted-Average Fair Value of Options Granted During the Period | $ 5.68 | $ 2 | ||
Previously Reported [Member] | ||||
Shares, Outstanding at Beginning of Year | 7,147,500 | 7,616,200 | 7,616,200 | 6,741,200 |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 0.85 | $ 0.72 | $ 0.72 | $ 0.78 |
Shares, Granted | 1,135,000 | 2,500,000 | ||
Weighted-Average Exercise Price, Granted | $ 1.47 | $ 0.37 | ||
Shares, Exercised | (500,000) | (1,270,000) | ||
Weighted-Average Exercise Price, Exercised | $ 0.59 | $ 0.16 | ||
Shares, Forfeited or Canceled | (1,103,700) | (355,000) | ||
Weighted-Average Exercise Price, Forfeited or Canceled | $ 0.93 | $ 1.12 | ||
Shares, Outstanding at End of Year | 7,147,500 | 7,616,200 | ||
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.85 | $ 0.72 | ||
Shares, Options Exercisable at End of Year | 7,132,500 | 7,616,200 | ||
Weighted-Average Exercise Price, Options Exercisable at End of Year | $ 0.85 | $ 0.72 | ||
Weighted-Average Fair Value of Options Granted During the Period | $ 0.71 | $ 0.25 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Range of Exericse Prices, Lower | $ 0.32 | |
Range of Exericse Prices, Upper | $ 16.24 | |
Number of Options Outstanding | 893,438 | |
Weighted- Average Remaining Contractual Life | 6 years 2 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 6.80 | |
Options Exercisable, Number Exercisable | 891,563 | |
Options Exercisable, Weighted-Average Exercise Price | $ 6.80 | |
Previously Reported [Member] | ||
Range of Exericse Prices, Lower | $ 0.04 | |
Range of Exericse Prices, Upper | $ 2.03 | |
Number of Options Outstanding | 7,147,500 | |
Weighted- Average Remaining Contractual Life | 6 years 2 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 0.85 | |
Options Exercisable, Number Exercisable | 7,132,500 | |
Options Exercisable, Weighted-Average Exercise Price | $ 0.85 |
SCHEDULE OF STOCK OPTIONS, VALU
SCHEDULE OF STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expected Life | 5 years | 5 years | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Risk-Free Interest Rate | 1% | 0.18% | ||
Previously Reported [Member] | ||||
Expected Life | 5 years | 5 years | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Risk-Free Interest Rate | 1% | 0.18% |
SCHEDULE OF WARRANT TRANSACTION
SCHEDULE OF WARRANT TRANSACTIONS (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares, Outstanding at Beginning of Year | 543,754 | 695,439 | 695,439 | |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 3.04 | $ 3.04 | $ 3.04 | |
Shares, Granted | 509,732 | 123,732 | ||
Weighted-Average Exercise Price, Granted | $ 2.96 | $ 2.80 | ||
Shares, Exercised | (78,102) | |||
Weighted-Average Exercise Price, Exercised | $ 2.80 | |||
Shares, Forfeited or Canceled | (103,125) | (275,416) | ||
Weighted-Average Exercise Price, Forfeited or Canceled | $ 2.80 | $ 2.88 | ||
Shares, Outstanding at End of Year | 872,259 | 543,754 | 543,754 | 695,439 |
Weighted-Average Exercise Price, Outstanding at End of Year | $ 3.04 | $ 3.04 | $ 3.04 | $ 3.04 |
Shares, Options Exercisable at End of Year | 872,259 | 543,754 | ||
Weighted-Average Exercise Price, Options Exercisable at End of Year | $ 3.04 | $ 3.04 | ||
Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Shares, Outstanding at Beginning of Year | 6,978,072 | 4,350,034 | 4,350,034 | 5,563,509 |
Weighted-Average Exercise Price, Outstanding at Beginning of Year | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.38 |
Shares, Granted | 4,077,857 | 989,856 | ||
Weighted-Average Exercise Price, Granted | $ 0.37 | $ 0.35 | ||
Shares, Exercised | (624,819) | |||
Weighted-Average Exercise Price, Exercised | $ 0.35 | |||
Shares, Forfeited or Canceled | (825,000) | (2,203,331) | ||
Weighted-Average Exercise Price, Forfeited or Canceled | $ 0.35 | $ 0.36 | ||
Shares, Outstanding at End of Year | 6,978,072 | 4,350,034 | ||
Weighted-Average Exercise Price, Outstanding at End of Year | $ 0.38 | $ 0.38 | ||
Shares, Options Exercisable at End of Year | 6,978,072 | 4,350,034 | ||
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 | 1.12 | 0.80 | ||
Minimum [Member] | Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Weighted-Average Fair Value of Options Granted During the Period | 0.14 | 0.10 | ||
Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Weighted-Average Fair Value of Options Granted During the Period | $ 3.92 | $ 2.08 | ||
Maximum [Member] | Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Weighted-Average Fair Value of Options Granted During the Period | $ 0.49 | $ 0.26 |
SUMMARY OF WARRANTS OUTSTANDING
SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE (Details) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Warrants Outstanding, Number Outstanding | 872,259 | 543,754 | 543,754 | 695,439 | |
Warrants Outstanding, Weighted-Average Remaining Contractual Life | 1 year 6 months | ||||
Warrants Outstanding, Weighted-Average Exercise Price | $ 3.04 | $ 3.04 | $ 3.04 | $ 3.04 | |
Warrants Exercisable, Number Exercisable | 872,259 | 543,754 | |||
Warrants Exercisable, Weighted-Average Exercise Price | $ 3.04 | $ 3.04 | |||
Previously Reported [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Warrants Outstanding, Number Outstanding | 6,978,072 | 4,350,034 | 5,563,509 | ||
Warrants Outstanding, Weighted-Average Remaining Contractual Life | 1 year 6 months | ||||
Warrants Outstanding, Weighted-Average Exercise Price | $ 0.38 | $ 0.38 | $ 0.38 | ||
Warrants Exercisable, Number Exercisable | 6,978,072 | 4,350,034 | |||
Warrants Exercisable, Weighted-Average Exercise Price | $ 0.38 | $ 0.38 | |||
Minimum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Range of Exercise Prices Maximum | 2.80 | ||||
Minimum [Member] | Previously Reported [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Range of Exercise Prices Maximum | 0.35 | ||||
Maximum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Range of Exercise Prices Maximum | $ 13.20 | ||||
Maximum [Member] | Previously Reported [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Range of Exercise Prices Maximum | $ 1.65 |
SCHEDULE OF STOCK WARRANT, VALU
SCHEDULE OF STOCK WARRANT, VALUATION ASSUMPTIONS (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected Life | 5 years | 5 years | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Risk-Free Interest Rate | 1% | 0.18% | ||
Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected Life | 5 years | 5 years | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Risk-Free Interest Rate | 1% | 0.18% | ||
Warrant [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected Life | 1 year 6 months | 1 year 6 months | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Warrant [Member] | Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Expected Life | 1 year 6 months | 1 year 6 months | ||
Dividend Yield | 0% | 0% | ||
Expected Volatility | 90% | 90% | ||
Warrant [Member] | Minimum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-Free Interest Rate | 0.18% | 0.19% | ||
Warrant [Member] | Minimum [Member] | Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-Free Interest Rate | 0.18% | 0.19% | ||
Warrant [Member] | Maximum [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-Free Interest Rate | 1% | 1.59% | ||
Warrant [Member] | Maximum [Member] | Previously Reported [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-Free Interest Rate | 1% | 1.59% |
STOCK OPTION PLAN AND WARRANT_2
STOCK OPTION PLAN AND WARRANTS (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 18, 2010 | Oct. 15, 2009 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options outstanding | 893,438 | 952,025 | 952,025 | 842,650 | |||||
Unrecognized stock- based compensation | $ 4,500 | ||||||||
Previously Reported [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options outstanding | 7,147,500 | 7,616,200 | 6,741,200 | ||||||
Unrecognized stock- based compensation | $ 4,500 | ||||||||
2009 Stock Option Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 187,500 | ||||||||
2009 Stock Option Plan [Member] | Previously Reported [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 1,500,000 | ||||||||
2010 Stock Option Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 1,625,000 | 375,000 | 125,000 | ||||||
2010 Stock Option Plan [Member] | Previously Reported [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 13,000,000 | 3,000,000 | 1,000,000 | ||||||
2020 Stock Option Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options outstanding | 893,438 | ||||||||
2020 Stock Option Plan [Member] | Previously Reported [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options outstanding | 7,147,500 | ||||||||
2020 Stock Option Plan [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 1,250,000 | ||||||||
2020 Stock Option Plan [Member] | Maximum [Member] | Previously Reported [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of shares authorized under plan | 10,000,000 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Tax Operating Loss Carryforward - USA | $ 10,800,000 | $ 9,800,000 |
Other | ||
Valuation Allowance - USA | (10,800,000) | (9,800,000) |
Deferred Tax Assets, Net | ||
Previously Reported [Member] | ||
Tax Operating Loss Carryforward - USA | 10,800,000 | 9,800,000 |
Other | ||
Valuation Allowance - USA | (10,800,000) | (9,800,000) |
Deferred Tax Assets, Net |
SUMMARY OF OPERATING LOSS CARRY
SUMMARY OF OPERATING LOSS CARRYFORWARDS (Details) - USD ($) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2021 | 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 | |
Net Operating Loss | $ 1,000,000 | $ 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 | 2041 | 2040 | 2039 | 2038 | 2037 | 2036 | 2035 | 2034 | 2033 | 2032 | 2031 | 2030 | 2029 | 2028 | 2027 | 2026 | 2025 |
Previously Reported [Member] | |||||||||||||||||
Net Operating Loss | $ 1,000,000 | $ 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 | 2041 | 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 ($) | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2022 | Dec. 31, 2021 | 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 | |
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Operating loss carryforwards | $ 1,000,000 | $ 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 | |||||||||||||||||
Previously Reported [Member] | ||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Operating loss carryforwards | $ 1,000,000 | $ 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 carryforwards | $ 2,000,000 | |||||||||||||||||
AZERBAIJAN | Previously Reported [Member] | ||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Operating loss carryforwards | 2,000,000 | |||||||||||||||||
Domestic Tax Authority [Member] | ||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Operating loss carryforwards | $ 29,000,000 | |||||||||||||||||
Operating loss carryforward, limitations on use | which will begin to expire in 2025 | |||||||||||||||||
Domestic Tax Authority [Member] | Previously Reported [Member] | ||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Operating loss carryforwards | $ 29,000,000 | |||||||||||||||||
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 | $ 500,000 | |||||||||||||||||
US Based Segment [Member] | Previously Reported [Member] | ||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||
Valuation allowance increased | $ 500,000 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic EPS | ||||||
Net Loss | $ (1,064,900) | $ (687,583) | $ (1,731,698) | $ (1,322,297) | $ (2,998,644) | |
Weighted Average Shares | 10,676,647 | 8,417,157 | ||||
Basic Loss Per Share | $ (0.09) | $ (0.08) | $ (0.16) | $ (0.16) | ||
Previously Reported [Member] | ||||||
Basic EPS | ||||||
Net Loss | $ (2,998,644) | $ (1,602,303) | ||||
Weighted Average Shares | 71,522,940 | 51,718,895 | ||||
Basic Loss Per Share | $ (0.04) | $ (0.03) |
CONTINGENT LIABILITIES_TAIWAN (
CONTINGENT LIABILITIES—TAIWAN (Details Narrative) - Megasys [Member] | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Financial exposure contingent future payments | $ 61,435 |
Previously Reported [Member] | |
Financial exposure contingent future payments | $ 61,435 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Aug. 11, 2022 | Aug. 09, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||
Warrants, term | 1 year 6 months | |||
Subsequent Event [Member] | Private Placement [Member] | Maxim Group LLC [Member] | ||||
Subsequent Event [Line Items] | ||||
Placement fees, percentage | 7% | |||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Private Placement [Member] | ||||
Subsequent Event [Line Items] | ||||
Gross proceeds from private placement | $ 5,000,000 | |||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Private Placement [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Sale of stock, shares issued | 1,100,000 | |||
Common stock, par value | $ 0.00001 | |||
Shares issued price per share | $ 1.52 | |||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Private Placement [Member] | Warrant [Member] | ||||
Subsequent Event [Line Items] | ||||
Warrants issued to purchase stock | 3,289,474 | |||
Warrants, exercise price | $ 1.40 | |||
Warrants, term | 5 years 6 months | |||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | Private Placement [Member] | Pre-funded Warrants [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.0001 | |||
Warrants issued to purchase stock | 2,189,474 |