Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41345 | |
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 | |
Entity Address, Address Line Two | Suite 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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,966,739 | |
Common Stock, $0.00001 par value per share | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | IVDA | |
Security Exchange Name | NASDAQ | |
Common Stock Purchase Warrants | ||
Title of 12(b) Security | Common Stock Purchase Warrants | |
Trading Symbol | IVDAW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 10,555,733 | $ 1,385,275 |
Restricted Cash | 124,343 | 142,688 |
Accounts Receivable, Net | 636,354 | 492,752 |
Inventory, Net | 718,506 | 344,654 |
Other Current Assets | 107,741 | 310,657 |
Total Current Assets | 12,142,677 | 2,676,026 |
PROPERTY AND EQUIPMENT, NET | 28,702 | 38,189 |
OTHER ASSETS | ||
Intangible Assets, Net | ||
Other Assets | 235,935 | 273,419 |
Total Other Assets | 235,935 | 273,419 |
Total Assets | 12,407,314 | 2,987,634 |
CURRENT LIABILITIES | ||
Accounts and Other Payables | 2,142,796 | 2,955,826 |
Due to Related Parties | 300,000 | 300,000 |
Short Term Debt | 1,244,856 | 50,000 |
Current Portion of Long-Term Debt | 104,812 | 120,284 |
Total Current Liabilities | 3,792,464 | 3,426,110 |
LONG-TERM DEBT | 216,612 | 338,803 |
STOCKHOLDERS’ EQUITY | ||
Preferred Stock, $0.00001 par value; 12,500,000 shares authorized Series B Preferred Stock, $0.00001 par value; 500 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | ||
Common Stock, $0.00001 par value; 37,500,000 shares authorized; 11,677,265 and 9,668,369, shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 150 | 97 |
Additional Paid-In Capital | 52,418,179 | 40,727,518 |
Subscription Receivable | ||
Accumulated Comprehensive Loss | (260,359) | (143,493) |
Accumulated Deficit | (43,759,732) | (41,361,401) |
Total Stockholders’ Equity (Deficit) | 8,398,238 | (777,279) |
Total Liabilities and Stockholders’ Equity | $ 12,407,314 | $ 2,987,634 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 issued | 11,677,265 | 9,668,369 |
Common stock, shares outstanding | 11,677,265 | 9,668,369 |
Series B Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUE | ||||
TOTAL REVENUE | $ 1,467,199 | $ 411,452 | $ 2,349,468 | $ 1,304,725 |
COST OF REVENUE | 1,112,770 | 136,887 | 1,665,596 | 781,895 |
GROSS PROFIT | 354,429 | 274,565 | 683,872 | 522,830 |
OPERATING EXPENSES | ||||
General & Administrative | 1,031,715 | 698,717 | 3,070,962 | 2,042,022 |
Total Operating Expenses | 1,031,715 | 698,717 | 3,070,962 | 2,042,022 |
LOSS FROM OPERATIONS | (677,286) | (424,152) | (2,387,090) | (1,519,192) |
OTHER INCOME (EXPENSE) | ||||
Miscellaneous Income (Expense) | 258 | 425 | (68) | |
Interest Income | 25,510 | 58 | 32,819 | 193 |
Interest Expense | (15,175) | (29,337) | (41,487) | (256,660) |
Total Other Income (Expense) | 10,593 | (29,279) | (8,243) | (256,535) |
LOSS BEFORE INCOME TAXES | (666,693) | (453,431) | (2,395,333) | (1,775,728) |
BENEFIT (PROVISION) FOR INCOME TAXES | 60 | (2,998) | ||
NET LOSS | $ (666,633) | $ (453,431) | $ (2,398,331) | $ (1,775,728) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.04) | $ (0.05) | $ (0.20) | $ (0.20) |
WEIGHTED AVERAGE SHARES | 14,966,739 | 8,557,429 | 12,106,884 | 8,697,700 |
Equipment Sales [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | $ 1,362,367 | $ 300,756 | $ 2,142,741 | $ 1,079,861 |
Service Revenue [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | 104,832 | 106,434 | 206,727 | 219,414 |
Other Revenue [Member] | ||||
REVENUE | ||||
TOTAL REVENUE | $ 4,262 | $ 5,450 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 | |
Income Statement [Abstract] | |
Reverse stock split | 1-for-8 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Preferred Stock [Member] Series B Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 66 | $ 34,769,076 | $ (38,322,456) | $ (153,254) | $ (3,706,568) | |
Beginning balance, shares at Dec. 31, 2020 | 6,583,924 | 257 | ||||
Common Stock Issued for Cash | $ 8 | 2,661,992 | 2,662,000 | |||
Common Stock Issued for Cash, shares | 757,655 | |||||
Costs of Capital | (2,091,101) | (2,091,101) | ||||
Stock Based Compensation | 801,908 | 801,908 | ||||
Common Stock for Accounts Payable | $ 1 | 99,789 | 99,789 | |||
Common Stock for Accounts Payable, shares | 27,896 | |||||
Common Stock for Costs of Financing | $ 6 | 1,932,730 | 1,932,736 | |||
Common Stock for Costs of Financing, shares | 628,750 | |||||
Warrants issued for services | 148,480 | 148,480 | ||||
Warrants for Interest Expense | 69,729 | 69,729 | ||||
Convertible Debenture Value | 69,729 | 69,729 | ||||
Preferred Stock - Series B for Dividend | 23,750 | 23,750 | ||||
Preferred Stock - Series B for Dividend, shares | 2 | |||||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock | $ 11 | 432,165 | 432,176 | |||
Preferred Stock - Series B Shares and Dividend Payable to Common Stock, shares | 1,090,015 | (259) | ||||
Dividends - P/S Series B | (40,301) | (40,301) | ||||
Conversion of Debt & Interest to Common Stock | $ 4 | 1,294,576 | 1,294,580 | |||
Conversion of Debt & Interest to Common Stock, shares | 439,527 | |||||
Exercise of options and warrants | $ 1 | 514,696 | 514,697 | |||
Exercise of options and warrants, shares | 140,602 | |||||
Net Loss | (2,998,644) | (2,998,644) | ||||
Comprehensive Loss | 9,761 | 9,761 | ||||
Ending balance, value at Dec. 31, 2021 | $ 97 | 40,727,518 | (41,361,401) | (143,493) | (777,279) | |
Ending balance, shares at Dec. 31, 2021 | 9,668,369 | 0 | ||||
Costs of Capital | (1,613,470) | (1,613,470) | ||||
Stock Based Compensation | 93,900 | 93,900 | ||||
Warrants issued for services | 5,555 | 5,555 | ||||
Exercise of options and warrants | 23,000 | 23,000 | ||||
Exercise of options and warrants, shares | 8,215 | |||||
Net Loss | (2,398,331) | (2,398,331) | ||||
Comprehensive Loss | (116,866) | (116,866) | ||||
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 | |||||
Common Stock Offering for Cash – April 2022 | $ 19 | 8,011,231 | 8,011,250 | |||
Common stock offering for cash, shares | 1,885,000 | |||||
Warrants sold in Over allotment | 2,797 | 2,797 | ||||
Common Stock and Pre-Funded Warrant Offering – August 2022 | $ 33 | 4,999,749 | 4,999,782 | |||
Common stock and prefunded warrant offering, shares | 3,289,474 | |||||
8 for 1 conversion adjustment, shares | 616 | |||||
Ending balance, value at Sep. 30, 2022 | $ 150 | $ 52,418,179 | $ (43,759,732) | $ (260,359) | $ 8,398,238 | |
Ending balance, shares at Sep. 30, 2022 | 14,966,739 | 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split | 1-for-8 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Loss | $ (666,633) | $ (453,431) | $ (2,398,331) | $ (1,775,728) | $ (2,998,644) |
Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities | |||||
Depreciation and Amortization | 13,136 | 17,148 | |||
Interest Value of Convertible Debt Issued | 69,729 | ||||
Stock Option Compensation | 93,900 | 88,000 | 801,908 | ||
Common Stock Issued for Services | 167,900 | ||||
Common Stock Warrants Issued for Services | 5,555 | 69,729 | |||
Common Stock Warrants Issued for Interest | 122,966 | ||||
(Increase) Decrease in Operating Assets | |||||
Accounts Receivable | (143,602) | 150,551 | |||
Inventory | (373,852) | (236,768) | |||
Other Current Assets | 114,587 | (328,086) | |||
Other Assets | 37,681 | 60,476 | |||
Increase (Decrease) in Accounts and Other Payables | (813,152) | 582,310 | |||
Net Cash Used in Operating Activities | (3,296,178) | (1,179,673) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of Property and Equipment | (5,184) | (17,352) | |||
Net Cash Provided by (Used in) Investing Activities | (5,184) | (17,352) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Changes in Restricted Cash | 18,345 | (59,209) | |||
Proceeds from (Payments on) Short-Term Notes Payable/Debt | 1,179,384 | 71,248 | |||
Proceeds from (Payments to) Due to Related Parties | (82,711) | ||||
Proceeds from (Payments to) Long-Term Debt | (122,191) | 115,865 | |||
Payments for Deferred Finance Costs | |||||
Common Stock Issued, Net of (Cost of Capital) | 11,511,687 | 2,113,000 | |||
Net Cash Provided by Financing Activities | 12,587,225 | 2,158,193 | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (115,405) | 20,745 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,170,458 | 981,913 | |||
Cash and Cash Equivalents- Beginning of Period | 1,385,275 | 249,521 | 249,521 | ||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 10,555,733 | $ 1,231,434 | 10,555,733 | 1,231,434 | $ 1,385,275 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
Interest Paid | 56,038 | 2,096 | |||
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 Accrued Interest converted to Common Stock | 288,787 | ||||
Debenture Principal converted to Common Stock | 499,750 | ||||
Rent Accounts Payable to related party converted to Common Stock | 55,789 | ||||
Accounts Payable to non-related party converted to Common Stock | 44,000 | ||||
Accrued Dividends converted to Common Stock | $ 455,926 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that 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 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 nine months ended September 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 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 95 492,752 We had revenue from two customers with greater than 10 55 55 0.8 34 0.5 2.3 0.8 41 0.3 14 2.0 No other customers represented greater than 10 Cash and Cash Equivalents For purposes of the statement of cash flows, we consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable We provide an allowance for doubtful collections, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. For our U.S.-based segment, receivables past due more than 120 days are considered delinquent. For our Taiwan-based segment, receivables over one year are considered delinquent. Delinquent receivables are written off based on individual credit valuation and specific circumstances of the customer. As of September 30, 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 Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the nine months ended September 30, 2022 was $ 13,136 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. 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 re-evaluated 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 September 30, 2022 December 31, 2021 Accounts Payable $ 790,160 $ 62,889 Accrued Expenses 1,323,461 2,834,726 Deferred Revenue and Customer Deposits 29,176 58,211 Accounts and Other Payables $ 2,142,796 $ 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 September 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 $ 93,900 801,908 Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September 30, 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 September 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 496,952 $ 7,545,159 Republic of China (Taiwan) $ 1,852,515 $ 853,078 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 |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 2 RELATED PARTIES SCHEDULE OF RELATED PARTY TRANSACTIONS September 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 9.5 December 31, 2016 2,500 6.16 200,000 200,000 On November 19, 2012, we entered into a convertible debenture agreement with Mr. Robert Gillen, a member of our Board of Directors, for $ 100,000 10 December 19, 2014 January 5, 2015 5,000 December 31, 2015 1,250 6.16 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 $ - $ - |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM DEBT | NOTE 3 SHORT-TERM AND LONG-TERM DEBT The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT September 30, 2022 (Unaudited) December 31, 2021 $ 50,000 $ 50,000 Debenture agreements with a shareholder at 10 December 2019, one year maturity, were due February 2020 – December 2020 2.80 50,000 12,079 $ 50,000 $ 50,000 Loan Agreement with Shanghai Bank at 2.68 due January 2023 62,887 - Loan Agreement with Shanghai Bank at 2.81 due September 2023 1,131,969 - Loan agreement with Hua Nam bank at 2.42 due September 2022 - - Balance at end of period $ 1,244,856 $ 50,000 Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT September 30, 2022 December 31. 2021 321,423 459,087 Loans from Shanghai Bank with interest rates 1.00 1.5 February 2024 November 2026 321,423 459,087 Current Portion of Long-term debt (104,812 ) (120,284 ) Balance at end of period $ 216,612 $ 338,803 |
PREFERRED STOCK
PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
PREFERRED STOCK | NOTE 4 PREFERRED STOCK We are currently authorized to issue up to 12,500,000 0.00001 1,250,000 500 |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | NOTE 5 EQUITY Common Stock We are authorized to issue up to 37,500,000 0.00001 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 |
STOCK OPTION PLANS
STOCK OPTION PLANS | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTION PLANS | NOTE 6 STOCK OPTION PLANS Stock Options 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 125,000 375,000 1,625,000 We adopted a new plan called Iveda Solutions, Inc. 2020 Plan (the “2020 Plan”). The 2020 Plan will have a maximum of 1.25 As of September 30, 2022 and December 31, 2021, there were 907,188 893,438 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 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 INCOME TAXES U.S. Federal Corporate Income Tax Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 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 As of December 31, 2021, we had federal net operating loss carryforwards for income tax purposes of approximately $ 29 which will begin to expire in 2025 2.0 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 | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 8 EARNINGS (LOSS) PER SHARE The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required by ASC No. 260, “Earnings per Share.” Basic earnings per share (“EPS”) is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. We had net losses for the nine months ended September 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 nine months ended September 30, 2022 and 2021. SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED September 30, 2022 September 30, 2021 (Unaudited) Basic EPS Net Loss $ (2,398,331 ) $ (1,775,728 ) Weighted Average Shares 12,106,884 8,697,700 Basic Loss Per Share $ (0.20 ) $ (0.20 ) |
CONTINGENT LIABILITIES_TAIWAN
CONTINGENT LIABILITIES—TAIWAN | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES—TAIWAN | NOTE 9 CONTINGENT LIABILITIES—TAIWAN Pursuant to certain contracts with Siemens, Chung-Hsin Electric and Machinery Manufacturing Corp, 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 $ 285,105 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Iveda has been offering real-time IP video surveillance technologies to our customers since 2005. While we still offer video surveillance technologies, our core product line has evolved to include AI intelligent search technology that 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 |
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 nine months ended September 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 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 95 492,752 We had revenue from two customers with greater than 10 55 55 0.8 34 0.5 2.3 0.8 41 0.3 14 2.0 No other customers represented greater than 10 |
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 September 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 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed primarily using the straight-line method over estimated useful lives of three to seven years. Expenditures for routine maintenance and repairs are charged to expense as incurred. Depreciation expense for the nine months ended September 30, 2022 was $ 13,136 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. |
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 re-evaluated 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 September 30, 2022 December 31, 2021 Accounts Payable $ 790,160 $ 62,889 Accrued Expenses 1,323,461 2,834,726 Deferred Revenue and Customer Deposits 29,176 58,211 Accounts and Other Payables $ 2,142,796 $ 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 September 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 $ 93,900 801,908 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to us as of September 30, 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 September 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 496,952 $ 7,545,159 Republic of China (Taiwan) $ 1,852,515 $ 853,078 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 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES | SCHEDULE OF ACCOUNTS AND OTHER PAYABLES September 30, 2022 December 31, 2021 Accounts Payable $ 790,160 $ 62,889 Accrued Expenses 1,323,461 2,834,726 Deferred Revenue and Customer Deposits 29,176 58,211 Accounts and Other Payables $ 2,142,796 $ 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 September 30, 2022 (Unaudited) Net Revenue Net Assets (Liabilities) United States $ 496,952 $ 7,545,159 Republic of China (Taiwan) $ 1,852,515 $ 853,078 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTY TRANSACTIONS | SCHEDULE OF RELATED PARTY TRANSACTIONS September 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 9.5 December 31, 2016 2,500 6.16 200,000 200,000 On November 19, 2012, we entered into a convertible debenture agreement with Mr. Robert Gillen, a member of our Board of Directors, for $ 100,000 10 December 19, 2014 January 5, 2015 5,000 December 31, 2015 1,250 6.16 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 $ - $ - |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM DEBT | The short-term debt balances were as follows: SCHEDULE OF SHORT-TERM DEBT September 30, 2022 (Unaudited) December 31, 2021 $ 50,000 $ 50,000 Debenture agreements with a shareholder at 10 December 2019, one year maturity, were due February 2020 – December 2020 2.80 50,000 12,079 $ 50,000 $ 50,000 Loan Agreement with Shanghai Bank at 2.68 due January 2023 62,887 - Loan Agreement with Shanghai Bank at 2.81 due September 2023 1,131,969 - Loan agreement with Hua Nam bank at 2.42 due September 2022 - - Balance at end of period $ 1,244,856 $ 50,000 |
SCHEDULE OF LONG-TERM DEBT | Long-term debt balances were as follows: SCHEDULE OF LONG-TERM DEBT September 30, 2022 December 31. 2021 321,423 459,087 Loans from Shanghai Bank with interest rates 1.00 1.5 February 2024 November 2026 321,423 459,087 Current Portion of Long-term debt (104,812 ) (120,284 ) Balance at end of period $ 216,612 $ 338,803 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | Temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities and tax credit and operating loss carryforward that create deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 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) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED | SCHEDULE OF EARNINGS PER SHARE BASIC AND DILUTED September 30, 2022 September 30, 2021 (Unaudited) Basic EPS Net Loss $ (2,398,331 ) $ (1,775,728 ) Weighted Average Shares 12,106,884 8,697,700 Basic Loss Per Share $ (0.20 ) $ (0.20 ) |
SCHEDULE OF ACCOUNTS AND OTHER
SCHEDULE OF ACCOUNTS AND OTHER PAYABLES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Accounts Payable | $ 790,160 | $ 62,889 |
Accrued Expenses | 1,323,461 | 2,834,726 |
Deferred Revenue and Customer Deposits | 29,176 | 58,211 |
Accounts and Other Payables | $ 2,142,796 | $ 2,955,826 |
SCHEDULE OF NET REVENUE AND NET
SCHEDULE OF NET REVENUE AND NET ASSETS (LIABILITIES) FOR OTHER SIGNIFICANT GEOGRAPHIC REGIONS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Net Revenue | $ 2,300,000 | $ 2,000,000 |
UNITED STATES | ||
Net Revenue | 496,952 | |
Net Assets (Liabilities) | 7,545,159 | |
Republic of China (Taiwan) [Member] | ||
Net Revenue | 1,852,515 | |
Net Assets (Liabilities) | $ 853,078 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2022 TWD ($) | |
Product Information [Line Items] | ||||
Accumulated deficit | $ 43,759,732 | $ 43,000,000 | $ 41,361,401 | |
FDIC insurance limit | $ 3 | |||
Revenues | 2,300,000 | 2,000,000 | ||
Inventory reserve | 0 | 0 | ||
Depreciation expense | 13,136 | 15,016 | ||
Stock option compensation | 93,900 | $ 88,000 | 801,908 | |
Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Account receivable | 492,752 | |||
Revenues | 800,000 | 800,000 | ||
Chicony Power Technology Co Ltd [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 500,000 | |||
Taiwan Stock Exchange Corporation [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 300,000 | |||
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 | 55% | |||
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] | Chunghwa Telecom [Member] | ||||
Product Information [Line Items] | ||||
Percentage of concentration risk | 34% | 41% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Taiwan Stock Exchange Corporation [Member] | ||||
Product Information [Line Items] | ||||
Percentage of concentration risk | 14% |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Total Due to related parties | $ 300,000 | $ 300,000 |
Less current portion | (300,000) | (300,000) |
Total long- term | ||
Mr Gregory Omi [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 |
SCHEDULE OF RELATED PARTY TRA_2
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) (Parenthetical) - Debenture Agreement [Member] - USD ($) | 1 Months Ended | ||
Jun. 20, 2013 | Aug. 28, 2014 | Nov. 19, 2012 | |
Mr Gregory Omi [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument, face amount | $ 200,000 | ||
Debt instrument, interest rate | 9.50% | ||
Share based compensation, options granted | 2,500 | ||
Share price | $ 6.16 | ||
Mr Gregory Omi [Member] | Extended Maturity [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument, maturity date | Dec. 31, 2016 | ||
Mr Robert Gillen [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument, face amount | $ 100,000 | ||
Debt instrument, interest rate | 10% | ||
Debt instrument, maturity date | Dec. 31, 2022 | Dec. 19, 2014 | |
Share based compensation, options granted | 1,250 | ||
Share price | $ 6.16 | ||
Interest expense | $ 5,000 | ||
Mr Robert Gillen [Member] | Extended Maturity [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument, maturity date | Dec. 31, 2015 | Jan. 05, 2015 |
SCHEDULE OF SHORT-TERM DEBT (De
SCHEDULE OF SHORT-TERM DEBT (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Short term debt | $ 1,244,856 | $ 50,000 |
Various Shareholders [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short term debt | 50,000 | 50,000 |
Shanghai Bank [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short term debt | 62,887 | |
Shanghai Bank One [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short term debt | 1,131,969 | |
Hua Nan Bank [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Short term debt |
SCHEDULE OF SHORT-TERM DEBT (_2
SCHEDULE OF SHORT-TERM DEBT (Details) (Parenthetical) - USD ($) | 1 Months Ended | 9 Months Ended |
Feb. 28, 2019 | Sep. 30, 2022 | |
Shanghai Bank [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Interest rate | 2.68% | |
Debt instrument, maturity date | due January 2023 | |
Shanghai Bank One [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Interest rate | 2.81% | |
Debt instrument, maturity date | due September 2023 | |
Hua Nan Bank [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Interest rate | 2.42% | |
Debt instrument, maturity date | due September 2022 | |
Debenture Agreement [Member] | Various Shareholders [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Interest rate | 10% | |
Debt instrument, maturity date | December 2019, one year maturity, were due February 2020 – December 2020 | |
Debt instrument convertible conversion price | $ 2.80 | |
Debt principal amount | $ 50,000 | |
Accrued interest | $ 12,079 |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long term debt | $ 216,612 | $ 338,803 |
Current portion of long term debt | (104,812) | (120,284) |
Shanghai Bank [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long term debt | $ 321,423 | $ 459,087 |
SCHEDULE OF LONG-TERM DEBT (D_2
SCHEDULE OF LONG-TERM DEBT (Details) (Parenthetical) - Shanghai Bank [Member] | 9 Months Ended |
Sep. 30, 2022 | |
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 |
Maximum [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 | Sep. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 12,500,000 | 12,500,000 |
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 B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
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 |
STOCK OPTION PLANS (Details Nar
STOCK OPTION PLANS (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 18, 2010 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Unrecognized stock- based compensation | $ 4,500 | |||||
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 | |||
2020 Stock Option Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options outstanding | 907,188 | 893,438 | ||||
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 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
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 | |
Income Tax Disclosure [Abstract] | |||||||||||||||||
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 ($) | 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 | |
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 |
AZERBAIJAN | |||||||||||||||||
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 | ||||||||||||||||
US Based Segment [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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Basic EPS | |||||
Net Loss | $ (666,633) | $ (453,431) | $ (2,398,331) | $ (1,775,728) | $ (2,998,644) |
Weighted Average Shares | 14,966,739 | 8,557,429 | 12,106,884 | 8,697,700 | |
Basic Loss Per Share | $ (0.04) | $ (0.05) | $ (0.20) | $ (0.20) |
CONTINGENT LIABILITIES_TAIWAN (
CONTINGENT LIABILITIES—TAIWAN (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Megasys [Member] | |
Concentration risk, credit risk, financial instrument | $ 285,105 |