VIASPACE Green Energy (VGREF) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 11, 2014
3. LAND USE RIGHT	'	'
Entity Registrant Name	'VIASPACE Green Energy Inc.	'
Entity Central Index Key	'0001465062	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	10,480,400
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and equivalents	$203,000	$144,000
Accounts receivable	234,000	59,000
Inventory	222,000	225,000
Prepaid expenses	27,000	26,000
Related party receivables	43,000	135,000
Other current assets	9,000	10,000
TOTAL CURRENT ASSETS	738,000	599,000
FIXED ASSETS, NET	943,000	1,013,000
OTHER ASSETS:	'	'
Land use right, net	651,000	702,000
License to grass, net	364,000	376,000
Goodwill	602,000	602,000
Marketable securities	1,425,000	1,791,000
Related party receivables	0	40,000
Other assets	10,000	10,000
TOTAL OTHER ASSETS	3,052,000	3,521,000
TOTAL ASSETS	4,733,000	5,133,000
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	303,000	112,000
Related party payables	166,000	63,000
Accrued expenses	170,000	208,000
Income taxes payable	27,000	28,000
TOTAL CURRENT LIABILITIES	666,000	411,000
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' EQUITY:	'	'
Common stock, $0.001 par value, 50,000,000 shares authorized, 10,480,400 issued and outstanding as of June 30, 2014 and December 31, 2013	10,000	10,000
Additional paid-in capital	17,983,000	17,983,000
Accumulated other comprehensive income	-251,000	115,000
Accumulated deficit	-13,675,000	-13,386,000
Total stockholders' equity	4,067,000	4,722,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$4,733,000	$5,133,000

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock shares authorized	50,000,000	50,000,000
Common stock, shares issued	10,480,400	10,480,400
Common stock, shares outstanding	10,480,400	10,480,400

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
REVENUES	$823,000	$945,000	$1,030,000	$1,694,000
REVENUES - RELATED PARTIES	0	10,000	14,000	64,000
TOTAL REVENUE	823,000	955,000	1,044,000	1,758,000
COST OF REVENUES	570,000	614,000	740,000	1,165,000
GROSS PROFIT	253,000	341,000	304,000	593,000
OPERATING EXPENSES	'	'	'	'
Operations	25,000	34,000	52,000	57,000
Selling, general and administrative	277,000	294,000	585,000	602,000
Total operating expenses	302,000	328,000	637,000	659,000
INCOME (LOSS) FROM OPERATIONS	-49,000	13,000	-333,000	-66,000
OTHER INCOME (EXPENSE)	'	'	'	'
Other expense	-4,000	-9,000	-4,000	-8,000
Other income	36,000	6,000	48,000	12,000
Total other income (expense)	32,000	-3,000	44,000	4,000
INCOME (LOSS) BEFORE INCOME TAXES	-17,000	10,000	-289,000	-62,000
Income taxes	0	0	0	0
NET INCOME ( LOSS)	($17,000)	$10,000	($289,000)	($62,000)
NET LOSS PER SHARE OF COMMON STOCK - Basic and diluted	$0	$0	($0.03)	($0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and diluted	10,480,400	10,480,400	10,480,400	10,480,400

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
NET INCOME (LOSS)	($17,000)	$10,000	($289,000)	($62,000)
Other Comprehensive Income:	'	'	'	'
Unrealized gain (loss) on marketable securities	-257,000	-358,000	-366,000	74,000
Foreign currency translation	0	14,000	0	14,000
Subtotal	-257,000	-344,000	-366,000	88,000
COMPREHENSIVE INCOME (LOSS)	($274,000)	($334,000)	($655,000)	$26,000

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($289,000)	($62,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation	68,000	58,000
Amortization	63,000	29,000
Gain on disposal of fixed assets	-3,000	0
Changes in operating assets and liabilities:	'	'
Accounts receivable	-175,000	-175,000
Inventory	2,000	-58,000
Related party receivables	131,000	-50,000
Prepaid expenses	-1,000	-16,000
Other assets	1,000	0
Accounts payable	192,000	108,000
Related party payables	103,000	-20,000
Accrued expenses	-37,000	51,000
Income tax payable	-1,000	0
Net cash provided by (used in) operating activities	54,000	-135,000
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Cash paid for purchase of fixed assets	-2,000	-41,000
Proceeds from disposal of fixed assets	8,000	0
Net cash used in investing activities	6,000	-41,000
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS	-1,000	14,000
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	59,000	-162,000
CASH AND CASH EQUIVALENTS, Beginning of period	144,000	202,000
CASH AND CASH EQUIVALENTS, End of period	203,000	40,000
Supplemental Disclosure of Cash Flow Information:	'	'
Interest	0	0
Income taxes	1,000	0
Noncash Investing and Financing Activities:	'	'
Change in fair value of available-for-sale securities	366,000	74,000
Available-for-sale securities received for related party receivable	$0	$1,221,000

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Description of Business – VIASPACE Green Energy Inc., a British Virgin Islands (“BVI”) international business company (“we”, “us”, “VGE” or the “Company”) is a renewable energy company. Our renewable energy is based on biomass -- in particular our dedicated energy crop with the trademarked name “Giant King® Grass”. VGE is the parent company of Inter Pacific Arts Corporation, a BVI international business company (“IPA BVI”) and Guangzhou Inter Pacific Arts, a People’s Republic of China (“PRC”) company (“IPA China”). IPA China is a wholly-owned foreign enterprise headquartered in Guangdong province of China. IPA BVI owns all equity interests of IPA China. IPA BVI and IPA China specialize in the manufacturing of high quality, copyrighted, wall décor sold in US retail chain stores. IPA China also has a license for and produces Giant King Grass (“GKG”), a proprietary dedicated energy crop, which can be burned in 100% biomass power plants to generate electricity, made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants, generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. GKG can also be used as animal feed. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
	We are growing GKG on approximately 457 acres of leased land in China, which serves as a nursery to provide seedlings for large bioenergy projects, a demonstration plantation for potential partners and customers to visit, to provide samples for testing by potential customers, and as a grass source for our own pellet products.
	Corporate History – VGE was formed on July 1, 2008. Prior to October 21, 2008, VGE was 100% owned by VIASPACE Inc. (“VIASPACE”) and had no active operations. On October 21, 2008, the majority shareholder of IPA BVI and IPA China, Sung Hsien Chang (“Chang”), entered into a Securities Purchase Agreement (the "Purchase Agreement") with VGE, VIASPACE and China Gate Technology Co., Ltd., a Brunei Darussalam company ("China Gate"). Under the Purchase Agreement, VGE acquired 100% of IPA BVI and the entire equity interest of IPA China from Chang. In exchange, VIASPACE agreed to pay approximately $16 million in cash and newly issued shares of VIASPACE and VGE stock. In addition, VIASPACE issued shares of its common stock to China Gate for China Gate’s sublicense of certain grass technology to IPA China. On September 30, 2012, VIASPACE, VGE and Chang entered into a recapitalization agreement whereby VIASPACE returned the shares it owned in VGE back to VGE, and VGE subsequently issued 8,384,320 shares to Changs, LLC, a limited liability company controlled by Chang. These shares represented 80% of the outstanding shares of VGE. The shares were issued to Changs, LLC during the fourth quarter of 2012. As of June 30, 2014 and December 31, 2013, Changs, LLC owned 80% of the outstanding shares of the Company.
	Basis of Presentation - The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Results for interim periods should not be considered indicative of results for a full year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The accounting policies used in preparing these consolidated financial statements are the same as those described in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are required as part of determining the allowance for doubtful accounts, estimated lives of property and equipment and intangibles, and long-lived asset impairments. Actual results and outcomes may materially differ from management’s estimates and assumptions.

2_MARKETABLE_SECURITIES_AVAILA

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE	6 Months Ended
	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
2. MARKETABLE SECURITIES, AVAILABLE FOR SALE	'
	The Company owns common shares of VIASPACE Inc., a company quoted on the OTC Capital Markets under the symbol “VSPC”. Prior to the separation of the Company from VIASPACE on September 30, 2012, the Company accounted for the common shares it held in VIASPACE, its parent company, on a cost basis. Subsequent to the separation, the Company has determined that its VSPC shares are available-for-sale securities in accordance with ASC Topic 320-10-35-1; therefore, unrealized holding gains and losses are reported as a component of accumulated other comprehensive loss until realized.
	On April 5, 2013, JJ International Inc. (“JJ”), a related party of the Company, entered into a Payment of Obligation and Limited Release Agreement (the “Agreement”) with VGE, IPA BVI and IPA China, whereby the parties agreed that JJ would give the Company 78,801,687 common shares of VIASPACE Inc., in full satisfaction of certain outstanding receivables. The number of common shares given by JJ was determined based on a closing price of $0.0155 of VIASPACE Inc. common stock on that date and had a fair market value of $1,221,426 on the date of the Agreement. No gain or loss was generated as there is no difference between the fair value of the shares received and the related party receivables settled.
	As of June 30, 2014, the Company owned 135,691,337 common shares of VSPC, with an estimated fair value of $1,425,000, which is based on the closing price of VSPC’s common stock on June 30, 2014. For the three months ended June 30, 2014, the Company recorded an unrealized holding loss of approximately $257,000, as a component of accumulated other comprehensive loss on the consolidated balance sheet. For the six months ended June 30, 2014, the Company recorded an unrealized holding loss of approximately $366,000, as a component of accumulated other comprehensive loss on the consolidated balance sheet.
	The Company’s investments owned by level within the fair value hierarchy at June 30, 2014 and December 31, 2013 are as follows:
	Assets	Fair value					Fair value Hierarchy
		30-Jun-14			31-Dec-13
	Stocks	$	1,425,000		$	1,791,000	Level 1
	Below is a summary of changes in the Company’s investment in VSPC for the six months ended June 30, 2014:
		2014
	Balance as January 1, 2014	$	1,791,000
	Additional shares received at fair market value to settle related party receivables		–
	Subtotal		1,791,000
	Change in unrealized loss included in comprehensive income		(366,000	)
	Balance as of June 30, 2014	$	1,425,000

3_RELATED_PARTIES

3. RELATED PARTIES	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
RELATED PARTIES	'
	Other than as listed below, we have not been a party to any significant transactions, proposed transactions, or series of transactions, and in which, to our knowledge, any of our directors, officers, five percent beneficial security holders, or any member of the immediate family of the foregoing persons has had or will have a direct or indirect material interest.
	Related Party Receivables
	Included in the Company’s consolidated balance sheets at June 30, 2014 and December 31, 2013 are Related Party Receivables and Payables. The Related Party Receivables and Payables are as follows. Sung Hsien Chang is a director and president of the Company and CEO of IPA China and IPA BVI. Chang is also an owner of JJ. As discussed in Note 2, JJ paid down $1,221,426 of the amount owed to the Company on April 5, 2013 with shares of VSPC common stock. As of June 30, 2014 and December 31, 2013, the Company had a receivable due from JJ in the amount of $3,000 and $105,000, respectively. This balance consists of the following:
		·	Advances are made to JJ by IPA BVI and VGE. Expenses that JJ pays on behalf of IPA BVI and VGE reduce these advances.  As of June 30, 2014 and December 31, 2013, included in the Due from JJ receivable shown below are net advances made to JJ by VGE in the amount of $3,000 and $6,000, respectively.  Additionally, at June 30, 2014 and December 31, 2013, $52,000 and $56,000, respectively, owed by IPA BVI to JJ is included in the related party payables summary below.
		·	IPA China recorded revenues of zero and $10,000 for sales made to JJ for the three months ended June 30, 2014 and 2013, respectively. IPA China recorded revenues of $14,000 and $64,000 for sales made to JJ for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, $61,000 is owed by IPA China to JJ and is included in the related party payables summary below.  As of December 31, 2013, included in the Due from JJ receivable are trade receivables of $99,000.
	The following table represents a summary of Related Party Receivables at June 30, 2014 and December 31, 2013:
			30-Jun-14		31-Dec-13
	Short Term
	Due from JJ International		$	3,000	$	105,000
	Due from employee of IPA China			–		30,000
	Due from VIASPACE			40,000		–
	Total short term			43,000		135,000
	Long Term
	Due from VIASPACE			–		40,000
	Total long term			–		40,000
	Total short term and long term		$	43,000	$	175,000
	VIASPACE has agreed to pay the Company $40,000 as reimbursement for legal fees and costs in connection with the separation of the Company and VIASPACE in 2012. This amount is due by September 30, 2014.
	Related Party Payables
	The following table is a summary of Related Party Payables at June 30, 2014 and December 31, 2013:
			30-Jun-14		31-Dec-13
	Due to Cindy Chang		$	14,000	$	7,000
	Due to JJ International			113,000		56,000
	Due to employee of IPA China			39,000		–
	Total		$	166,000	$	63,000
	On October 1, 2012, IPA BVI and VGE entered into an office lease agreement with Cindy Chang, spouse of Sung Hsien Chang, whereby IPA BVI and VGE would each pay to Cindy Chang $1,200 per month for rent on the Company’s headquarters in Marietta, Georgia. For the three months ended June 30, 2014 and 2013, the Company recorded rent expense of $7,200 under this lease for each period. For the six months ended June 30, 2014 and 2013, the Company recorded rent expense of $14,400 under this lease for each period.

4_OPERATING_SEGMENTS

4. OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
OPERATING SEGMENTS	'
	The Company evaluates its reportable segments in accordance with FASB ASC Topic 280 “Disclosures about Segments of an Enterprise and Related Information”. As of June 30, 2014, the Company’s President, Sung Hsien Chang, was the Company’s Chief Operating Decision Maker (“CODM”) pursuant to FASB ASC Topic 280. The CODM allocates resources to the segments based on their business prospects, product development and engineering, and marketing and strategy.
	The Company operates in two reportable segments:
	Framed-Artwork Segment:
	(i)	IPA China and IPA BVI: Specialize in manufacturing high-quality, copyrighted, framed artwork in the PRC which is sold to retail stores in the US.
	Grass Segment:
	(i)	VGE (but not including operations of its subsidiaries, IPA China and IPA BVI): VGE grows a fast-growing, high yield, low carbon, nonfood energy crop called Giant King Grass (“GKG”) in the PRC. GKG can be burned in 100% biomass power plants to generate electricity; made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants; generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation. GKG can also be used as animal feed.  On September 30, 2012, VGE obtained a worldwide sublicense regarding GKG from IPA China.  On the same date, VGE then entered into a sublicense agreement with VIASPACE whereby VGE retains the exclusive rights to the GKG license in China and Taiwan, and VIASPACE has an exclusive GKG worldwide license outside of China and Taiwan.  The sublicense agreement has milestones that VIASPACE must meet every two years in order to retain rights to the sublicense.
	The accounting policies of the reportable segments are described in the summary of significant accounting policies (see Note 1 to these financial statements). The Company evaluates segment performance based on income (loss) from operations excluding infrequent and unusual items.
	Information on reportable segments for the three and six months ended June 30, 2014 and 2013 are shown below:
			Three Months Ended June 30,						Six Months Ended June 30,
			2014			2013			2014			2013
	Revenues:
	Framed-Artwork		$	823,000		$	954,000		$	1,038,000		$	1,737,000
	Grass			–			1,000			6,000			21,000
	Total		$	823,000		$	955,000		$	1,044,000		$	1,758,000
	Income (Loss) From Operations:
	Framed-Artwork		$	125,000		$	200,000		$	51,000		$	307,000
	Grass			(174,000	)		(187,000	)		(384,000	)		(373,000	)
	Income (Loss) From Operations		$	(49,000	)	$	13,000		$	(333,000	)	$	(66,000	)
	Depreciation and amortization:
	Framed-Artwork		$	26,000		$	22,000		$	52,000		$	43,000
	Grass			39,000			22,000			79,000			44,000
	Total		$	65,000		$	44,000		$	131,000		$	87,000
			30-Jun-14			31-Dec-13
	Assets:
	Framed-Artwork		$	3,633,000		$	3,877,000
	Grass			1,100,000			1,256,000
	Total Assets		$	4,733,000		$	5,133,000
			30-Jun-14			31-Dec-13
	Identifiable long-lived assets, net:
	Framed-Artwork		$	963,000		$	1,012,000
	Grass			995,000			1,079,000
	Total Identifiable long-lived assets, net		$	1,958,000		$	2,091,000
	For the three months ended June 30, 2014 and 2013, the Company had one customer which made up 99% of our total revenues. For the six months ended June 30, 2014 and 2013, the Company had one customer which made up 98% and 96%, respectively, of our total revenues.

1_SUMMARY_OF_SIGNIFICANT_ACCOU1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Description of Business	'
	Description of Business – VIASPACE Green Energy Inc., a British Virgin Islands (“BVI”) international business company (“we”, “us”, “VGE” or the “Company”) is a renewable energy company. Our renewable energy is based on biomass -- in particular our dedicated energy crop with the trademarked name “Giant King® Grass”. VGE is the parent company of Inter Pacific Arts Corporation, a BVI international business company (“IPA BVI”) and Guangzhou Inter Pacific Arts, a People’s Republic of China (“PRC”) company (“IPA China”). IPA China is a wholly-owned foreign enterprise headquartered in Guangdong province of China. IPA BVI owns all equity interests of IPA China. IPA BVI and IPA China specialize in the manufacturing of high quality, copyrighted, wall décor sold in US retail chain stores. IPA China also has a license for and produces Giant King Grass (“GKG”), a proprietary dedicated energy crop, which can be burned in 100% biomass power plants to generate electricity, made into pellets that can be burned together with coal to reduce carbon emissions from existing power plants, generate bio methane through anaerobic digestion, and can be used as a feedstock for low carbon liquid biofuels for transportation, biochemicals and bio plastics. GKG can also be used as animal feed. GKG has been independently tested by customers and been shown to have excellent energy content, high bio methane production, and the cellulosic sugar content needed for biofuels and biochemicals.
	We are growing GKG on approximately 457 acres of leased land in China, which serves as a nursery to provide seedlings for large bioenergy projects, a demonstration plantation for potential partners and customers to visit, to provide samples for testing by potential customers, and as a grass source for our own pellet products.
Corporate History	'
	Corporate History – VGE was formed on July 1, 2008. Prior to October 21, 2008, VGE was 100% owned by VIASPACE Inc. (“VIASPACE”) and had no active operations. On October 21, 2008, the majority shareholder of IPA BVI and IPA China, Sung Hsien Chang (“Chang”), entered into a Securities Purchase Agreement (the "Purchase Agreement") with VGE, VIASPACE and China Gate Technology Co., Ltd., a Brunei Darussalam company ("China Gate"). Under the Purchase Agreement, VGE acquired 100% of IPA BVI and the entire equity interest of IPA China from Chang. In exchange, VIASPACE agreed to pay approximately $16 million in cash and newly issued shares of VIASPACE and VGE stock. In addition, VIASPACE issued shares of its common stock to China Gate for China Gate’s sublicense of certain grass technology to IPA China. On September 30, 2012, VIASPACE, VGE and Chang entered into a recapitalization agreement whereby VIASPACE returned the shares it owned in VGE back to VGE, and VGE subsequently issued 8,384,320 shares to Changs, LLC, a limited liability company controlled by Chang. These shares represented 80% of the outstanding shares of VGE. The shares were issued to Changs, LLC during the fourth quarter of 2012. As of June 30, 2014 and December 31, 2013, Changs, LLC owned 80% of the outstanding shares of the Company.
Basis of Presentation	'
	Basis of Presentation - The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Results for interim periods should not be considered indicative of results for a full year. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The accounting policies used in preparing these consolidated financial statements are the same as those described in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation.
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are required as part of determining the allowance for doubtful accounts, estimated lives of property and equipment and intangibles, and long-lived asset impairments. Actual results and outcomes may materially differ from management’s estimates and assumptions.

2_MARKETABLE_SECURITIES_AVAILA1

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Tables)	6 Months Ended
	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Fair value schedule	'
	Assets	Fair value					Fair value Hierarchy
		30-Jun-14			31-Dec-13
	Stocks	$	1,425,000		$	1,791,000	Level 1
Changes in investments	'
		2014
	Balance as January 1, 2014	$	1,791,000
	Additional shares received at fair market value to settle related party receivables		–
	Subtotal		1,791,000
	Change in unrealized loss included in comprehensive income		(366,000	)
	Balance as of June 30, 2014	$	1,425,000

3_RELATED_PARTIES_Tables

3. RELATED PARTIES (Tables)	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Receivables	'
		30-Jun-14		31-Dec-13
	Short Term
	Due from JJ International	$	3,000	$	105,000
	Due from employee of IPA China		–		30,000
	Due from VIASPACE		40,000		–
	Total short term		43,000		135,000
	Long Term
	Due from VIASPACE		–		40,000
	Total long term		–		40,000
	Total short term and long term	$	43,000	$	175,000
Related Party Payables	'
		30-Jun-14		31-Dec-13
	Due to Cindy Chang	$	14,000	$	7,000
	Due to JJ International		113,000		56,000
	Due to employee of IPA China		39,000		–
	Total	$	166,000	$	63,000

4_OPERATING_SEGMENTS_Tables

4. OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting [Abstract]	'
Reportable Segments	'
		Three Months Ended June 30,						Six Months Ended June 30,
		2014			2013			2014			2013
	Revenues:
	Framed-Artwork	$	823,000		$	954,000		$	1,038,000		$	1,737,000
	Grass		–			1,000			6,000			21,000
	Total	$	823,000		$	955,000		$	1,044,000		$	1,758,000
	Income (Loss) From Operations:
	Framed-Artwork	$	125,000		$	200,000		$	51,000		$	307,000
	Grass		(174,000	)		(187,000	)		(384,000	)		(373,000	)
	Income (Loss) From Operations	$	(49,000	)	$	13,000		$	(333,000	)	$	(66,000	)
	Depreciation and amortization:
	Framed-Artwork	$	26,000		$	22,000		$	52,000		$	43,000
	Grass		39,000			22,000			79,000			44,000
	Total	$	65,000		$	44,000		$	131,000		$	87,000
		30-Jun-14			31-Dec-13
	Assets:
	Framed-Artwork	$	3,633,000		$	3,877,000
	Grass		1,100,000			1,256,000
	Total Assets	$	4,733,000		$	5,133,000
		30-Jun-14			31-Dec-13
	Identifiable long-lived assets, net:
	Framed-Artwork	$	963,000		$	1,012,000
	Grass		995,000			1,079,000
	Total Identifiable long-lived assets, net	$	1,958,000		$	2,091,000

2_MARKETABLE_SECURITIES_AVAILA2

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Details-Fair value) (Fair Value, Inputs, Level 1 [Member], USD $)	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]	'	'
Stocks	$1,425,000	$1,791,000

2_MARKETABLE_SECURITIES_AVAILA3

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Details - Investment summary) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fair Value Disclosures [Abstract]	'	'	'	'
Investment in VSPC, beginning balance	'	'	$1,791,000	'
Additional shares transferred to Company at fair market value	'	'	0	'
Subtotal	1,791,000	'	1,791,000	'
Change in unrealized gain (loss) included in comprehensive income	-257,000	-358,000	-366,000	74,000
Investment in VSPC, ending balance	$1,425,000	'	$1,425,000	'

3_RELATED_PARTY_TRANSACTIONS_D

3. RELATED PARTY TRANSACTIONS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Related party receivables	$43,000	$135,000
Related party receivables, long term	0	40,000
Related party receivables	43,000	175,000
Related party payables	166,000	63,000
Cindy Chang	'	'
Related party payables	14,000	7,000
JJ International	'	'
Related party receivables	3,000	105,000
Related party payables	113,000	56,000
Employee of IPA China	'	'
Related party receivables	0	30,000
Related party payables	39,000	0
VIASPACE	'	'
Related party receivables	40,000	0
Related party receivables, long term	$0	$40,000

3_RELATED_PARTIES_Details_Narr

3. RELATED PARTIES (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Related Party Transactions [Abstract]	'	'	'	'
Rent expense	$7,200	$7,200	$14,400	$14,400

4_OPERATING_SEGMENTS_Details

4. OPERATING SEGMENTS (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Revenues	$823,000	$955,000	$1,044,000	$1,758,000	'
Income (Loss) From Operations	-49,000	13,000	-333,000	-66,000	'
Depreciation and amortization	65,000	44,000	131,000	87,000	'
Total Assets	4,733,000	'	4,733,000	'	5,133,000
Identifiable long-lived assets	1,958,000	'	1,958,000	'	2,091,000
Framed-Artwork	'	'	'	'	'
Revenues	823,000	954,000	1,038,000	1,737,000	'
Income (Loss) From Operations	125,000	200,000	51,000	307,000	'
Depreciation and amortization	26,000	22,000	52,000	43,000	'
Total Assets	3,633,000	'	3,633,000	'	3,877,000
Identifiable long-lived assets	963,000	'	963,000	'	1,012,000
Grass [Member]	'	'	'	'	'
Revenues	0	1,000	6,000	20,000	'
Income (Loss) From Operations	-174,000	-187,000	-384,000	-373,000	'
Depreciation and amortization	39,000	22,000	79,000	44,000	'
Total Assets	1,100,000	'	1,100,000	'	1,256,000
Identifiable long-lived assets	$995,000	'	$995,000	'	$1,079,000

4_OPERATING_SEGMENTS_Details_N

4. OPERATING SEGMENTS (Details Narrative) (Revenues, One Customer)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues | One Customer	'	'	'	'
Customer concentration from one customer for revenues	99.00%	99.00%	98.00%	96.00%