VIASPACE Green Energy (VGREF) 10-Q 13 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 12, 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-Sep-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	'Q3	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and equivalents	$314,000	$144,000
Accounts receivable, net	38,000	59,000
Inventory	175,000	225,000
Prepaid expenses	21,000	26,000
Related party receivables	9,000	135,000
Other current assets	6,000	10,000
TOTAL CURRENT ASSETS	563,000	599,000
FIXED ASSETS, NET	925,000	1,013,000
OTHER ASSETS:	'	'
Land use rights, net	637,000	702,000
License to grass, net	357,000	376,000
Goodwill	602,000	602,000
Marketable securities	1,126,000	1,791,000
Related party receivables	0	40,000
Other assets	10,000	10,000
TOTAL OTHER ASSETS	2,732,000	3,521,000
TOTAL ASSETS	4,220,000	5,133,000
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	138,000	112,000
Related party payables	105,000	63,000
Accrued expenses	205,000	208,000
Income taxes payable	26,000	28,000
TOTAL CURRENT LIABILITIES	474,000	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 September 30, 2014 and December 31, 2013	10,000	10,000
Additional paid-in capital	17,983,000	17,983,000
Accumulated other comprehensive income	-550,000	115,000
Accumulated deficit	-13,697,000	-13,386,000
Total stockholders' equity	3,746,000	4,722,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$4,220,000	$5,133,000

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 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		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]	'	'	'	'
REVENUES	$525,000	$697,000	$1,555,000	$2,391,000
REVENUES - RELATED PARTIES	35,000	9,000	49,000	73,000
TOTAL REVENUE	560,000	706,000	1,604,000	2,464,000
COST OF REVENUES	323,000	481,000	1,063,000	1,646,000
GROSS PROFIT	237,000	225,000	541,000	818,000
OPERATING EXPENSES	'	'	'	'
Operations	21,000	29,000	73,000	86,000
Selling, general and administrative	255,000	286,000	840,000	888,000
Total operating expenses	276,000	315,000	913,000	974,000
LOSS FROM OPERATIONS	-39,000	-90,000	-372,000	-156,000
OTHER INCOME (EXPENSE)	'	'	'	'
Other expense	-8,000	-11,000	-12,000	-19,000
Other income	25,000	6,000	73,000	18,000
Total other income (expense)	17,000	-5,000	61,000	-1,000
LOSS BEFORE INCOME TAXES	-22,000	-95,000	-311,000	-157,000
Income taxes	0	0	0	0
NET LOSS	($22,000)	($95,000)	($311,000)	($157,000)
NET LOSS PER SHARE OF COMMON STOCK - Basic and diluted	$0	($0.01)	($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 LOSS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
NET LOSS	($22,000)	($95,000)	($311,000)	($157,000)
Other Comprehensive Income:	'	'	'	'
Unrealized gain (loss) on marketable securities	-299,000	122,000	-665,000	196,000
Foreign currency translation	0	5,000	0	19,000
Subtotal	-299,000	127,000	-665,000	215,000
COMPREHENSIVE LOSS	($321,000)	$32,000	($976,000)	$58,000

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($311,000)	($157,000)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation	99,000	87,000
Amortization	84,000	54,000
Bad debt expense	0	23,000
Gain on disposal of fixed assets	-3,000	0
Changes in operating assets and liabilities:	'	'
Accounts receivable	21,000	53,000
Inventory	50,000	48,000
Related party receivables	165,000	55,000
Prepaid expenses	5,000	-7,000
Other assets	4,000	4,000
Accounts payable	27,000	-107,000
Related party payables	41,000	-6,000
Accrued expenses	-3,000	18,000
Income tax payable	-1,000	0
Net cash provided by operating activities	178,000	65,000
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Cash paid for purchase of fixed assets	-16,000	-68,000
Proceeds from disposal of fixed assets	8,000	0
Cash paid for land leases	0	-135,000
Net cash used in investing activities	-8,000	-203,000
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS	0	19,000
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	170,000	-119,000
CASH AND CASH EQUIVALENTS, Beginning of period	144,000	202,000
CASH AND CASH EQUIVALENTS, End of period	314,000	83,000
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	665,000	196,000
Available-for-sale securities received for related party receivable	$0	$1,221,000

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 September 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.
	Recently issued accounting pronouncements - In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from contracts with Customers (Topic 606)”. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.
	In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.
	In August 2014, the FASB issued ASU 2014-15 “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.

2_MARKETABLE_SECURITIES_AVAILA

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE	9 Months Ended
	Sep. 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 September 30, 2014, the Company owned 135,691,337 common shares of VSPC, with an estimated fair value of $1,126,000, which is based on the closing price of VSPC’s common stock on September 30, 2014. For the three months ended September 30, 2014, the Company recorded an unrealized holding loss of approximately $299,000, as a component of accumulated other comprehensive loss on the consolidated balance sheet. For the nine months ended September 30, 2014, the Company recorded an unrealized holding loss of approximately $665,000, 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 September 30, 2014 and December 31, 2013 are as follows:
	Assets	Fair value					Fair value Hierarchy
		30-Sep-14			31-Dec-13
	Stocks	$	1,126,000		$	1,791,000	Level 1
	Below is a summary of changes in the Company’s investment in VSPC for the nine months ended September 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		(665,000	)
	Balance as of September 30, 2014	$	1,126,000

3_RELATED_PARTIES

3. RELATED PARTIES	9 Months Ended
	Sep. 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 September 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 September 30, 2014 and December 31, 2013, the Company had a receivable due from JJ in the amount of $9,000 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 September 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 $9,000 and $6,000, respectively.  Additionally, at September 30, 2014 and December 31, 2013, $30,000 and $56,000, respectively, owed by IPA BVI to JJ is included in the related party payables summary below.
		·	IPA China recorded revenues of $35,000 and $9,000 for sales made to JJ for the three months ended September 30, 2014 and 2013, respectively. IPA China recorded revenues of $49,000 and $73,000 for sales made to JJ for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, $25,000 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 September 30, 2014 and December 31, 2013:
			30-Sep-14		31-Dec-13
	Short Term
	Due from JJ International		$	9,000	$	105,000
	Due from employee of IPA China			–		30,000
	Total short term			9,000		135,000
	Long Term
	Due from VIASPACE			–		40,000
	Total long term			–		40,000
	Total short term and long term		$	9,000	$	175,000
	VIASPACE had 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 was paid on September 25, 2014.
	Related Party Payables
	The following table is a summary of Related Party Payables at September 30, 2014 and December 31, 2013:
			30-Sep-14		31-Dec-13
	Due to Cindy Chang		$	22,000	$	7,000
	Due to JJ International			55,000		56,000
	Due to employee of IPA China			28,000		–
	Total		$	105,000	$	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 September 30, 2014 and 2013, the Company recorded rent expense of $7,200 under this lease for each period. For the nine months ended September 30, 2014 and 2013, the Company recorded rent expense of $21,600 under this lease for each period.

4_OPERATING_SEGMENTS

4. OPERATING SEGMENTS	9 Months Ended
	Sep. 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 September 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.  On September 30, 2014, the sublicense has been renewed for an additional two years under the current terms of the agreement. 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 nine months ended September 30, 2014 and 2013 are shown below:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2014			2013			2014			2013
	Revenues:
	Framed-Artwork		$	560,000		$	705,000		$	1,598,000		$	2,442,000
	Grass			–			1,000			6,000			22,000
	Total		$	560,000		$	706,000		$	1,604,000		$	2,464,000
	Income (Loss) From Operations:
	Framed-Artwork		$	113,000		$	98,000		$	164,000		$	405,000
	Grass			(152,000	)		(188,000	)		(536,000	)		(561,000	)
	Loss From Operations		$	(39,000	)	$	(90,000	)	$	(372,000	)	$	(156,000	)
	Depreciation and amortization:
	Framed-Artwork		$	25,000		$	20,000		$	77,000		$	63,000
	Grass			27,000			34,000			106,000			78,000
	Total		$	52,000		$	54,000		$	183,000		$	141,000
			30-Sep-14			31-Dec-13
	Assets:
	Framed-Artwork		$	3,137,000		$	3,877,000
	Grass			1,083,000			1,256,000
	Total Assets		$	4,220,000		$	5,133,000
			30-Sep-14			31-Dec-13
	Identifiable long-lived assets, net:
	Framed-Artwork		$	951,000		$	1,012,000
	Grass			968,000			1,079,000
	Total Identifiable long-lived assets, net		$	1,919,000		$	2,091,000
	For the three months ended September 30, 2014 and 2013, the Company had one customer which made up 93% and 99%, respectively, of our total revenues. For the nine months ended September 30, 2014 and 2013, the Company had one customer which made up 96% and 97%, respectively, of our total revenues.

1_SUMMARY_OF_SIGNIFICANT_ACCOU1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 September 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.
Recently issued accounting pronouncements	'
	Recently issued accounting pronouncements - In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
	In May 2014, the FASB issued ASU 2014-09, “Revenue from contracts with Customers (Topic 606)”. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchanged for those goods or services. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.
	In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.
	In August 2014, the FASB issued ASU 2014-15 “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial position and results of operations.

2_MARKETABLE_SECURITIES_AVAILA1

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Fair value schedule	'
	Assets	Fair value					Fair value Hierarchy
		30-Sep-14			31-Dec-13
	Stocks	$	1,126,000		$	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		(665,000	)
	Balance as of September 30, 2014	$	1,126,000

3_RELATED_PARTIES_Tables

3. RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Receivables	'
		30-Sep-14		31-Dec-13
	Short Term
	Due from JJ International	$	9,000	$	105,000
	Due from employee of IPA China		–		30,000
	Total short term		9,000		135,000
	Long Term
	Due from VIASPACE		–		40,000
	Total long term		–		40,000
	Total short term and long term	$	9,000	$	175,000
Related Party Payables	'
		30-Sep-14		31-Dec-13
	Due to Cindy Chang	$	22,000	$	7,000
	Due to JJ International		55,000		56,000
	Due to employee of IPA China		28,000		–
	Total	$	105,000	$	63,000

4_OPERATING_SEGMENTS_Tables

4. OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
Segment Reporting [Abstract]	'
Reportable Segments	'
		Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
	Revenues:
	Framed-Artwork	$	560,000		$	705,000		$	1,598,000		$	2,442,000
	Grass		–			1,000			6,000			22,000
	Total	$	560,000		$	706,000		$	1,604,000		$	2,464,000
	Income (Loss) From Operations:
	Framed-Artwork	$	113,000		$	98,000		$	164,000		$	405,000
	Grass		(152,000	)		(188,000	)		(536,000	)		(561,000	)
	Loss From Operations	$	(39,000	)	$	(90,000	)	$	(372,000	)	$	(156,000	)
	Depreciation and amortization:
	Framed-Artwork	$	25,000		$	20,000		$	77,000		$	63,000
	Grass		27,000			34,000			106,000			78,000
	Total	$	52,000		$	54,000		$	183,000		$	141,000
		30-Sep-14			31-Dec-13
	Assets:
	Framed-Artwork	$	3,137,000		$	3,877,000
	Grass		1,083,000			1,256,000
	Total Assets	$	4,220,000		$	5,133,000
		30-Sep-14			31-Dec-13
	Identifiable long-lived assets, net:
	Framed-Artwork	$	951,000		$	1,012,000
	Grass		968,000			1,079,000
	Total Identifiable long-lived assets, net	$	1,919,000		$	2,091,000

2_MARKETABLE_SECURITIES_AVAILA2

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Details-Fair value) (Fair Value, Inputs, Level 1 [Member], USD $)	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member]	'	'
Stocks	$1,126,000	$1,791,000

2_MARKETABLE_SECURITIES_AVAILA3

2. MARKETABLE SECURITIES, AVAILABLE FOR SALE (Details - Investment summary) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Investments, Debt and Equity Securities [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	-299,000	122,000	-665,000	196,000
Investment in VSPC, ending balance	$1,126,000	'	$1,126,000	'

2_MARKETABLE_SECURITIES_Detail

2. MARKETABLE SECURITIES (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Unrealized holding loss	($299,000)	$122,000	($665,000)	$196,000
VIASPACE [Member]	'	'	'	'
Stock owned in VSPC	135,691,337	'	135,691,337	'
Value of stock owned in VSPC	1,126,000	'	1,126,000	'
Unrealized holding loss	($299,000)	'	($665,000)	'

3_RELATED_PARTY_TRANSACTIONS_D

3. RELATED PARTY TRANSACTIONS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Related party receivables	$9,000	$135,000
Related party receivables, long term	0	40,000
Related party receivables	9,000	175,000
Related party payables	105,000	63,000
Cindy Chang	'	'
Related party payables	22,000	7,000
JJ International	'	'
Related party receivables	9,000	105,000
Related party payables	55,000	56,000
Employee of IPA China	'	'
Related party receivables	0	30,000
Related party payables	28,000	0
VIASPACE	'	'
Related party receivables, long term	$0	$40,000

3_RELATED_PARTIES_Details_Narr

3. RELATED PARTIES (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Related Party Transactions [Abstract]	'	'	'	'
Rent expense	$7,200	$7,200	$21,600	$21,600

4_OPERATING_SEGMENTS_Details

4. OPERATING SEGMENTS (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Revenues	$560,000	$706,000	$1,604,000	$2,464,000	'
Income (Loss) From Operations	-39,000	-90,000	-372,000	-156,000	'
Depreciation and amortization	52,000	54,000	183,000	141,000	'
Total Assets	4,220,000	'	4,220,000	'	5,133,000
Identifiable long-lived assets	1,919,000	'	1,919,000	'	2,091,000
Framed-Artwork	'	'	'	'	'
Revenues	560,000	705,000	1,598,000	2,442,000	'
Income (Loss) From Operations	113,000	98,000	164,000	405,000	'
Depreciation and amortization	25,000	20,000	77,000	63,000	'
Total Assets	3,137,000	'	3,137,000	'	3,877,000
Identifiable long-lived assets	951,000	'	951,000	'	1,012,000
Grass [Member]	'	'	'	'	'
Revenues	0	1,000	6,000	22,000	'
Income (Loss) From Operations	-152,000	-188,000	-536,000	-561,000	'
Depreciation and amortization	27,000	34,000	106,000	78,000	'
Total Assets	1,083,000	'	1,083,000	'	1,256,000
Identifiable long-lived assets	$968,000	'	$968,000	'	$1,079,000

4_OPERATING_SEGMENTS_Details_N

4. OPERATING SEGMENTS (Details Narrative) (Revenues, One Customer)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues | One Customer	'	'	'	'
Customer concentration from one customer for revenues	97.00%	96.00%	96.00%	99.00%