Iveda Solutions, Inc. — Director's Dealing 2014

Dec 11, 2014

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Iveda Solutions, Inc. (IVDA)
CIK: 0001397183
Period of Report: 2014-12-09

Reporting Person: Kuo Alex (Director, Chief Strategy Officer)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2014-12-09	9.5% Senior Convertible Debenture	$1.50	H	25333	Disposed	2017-05-30	Common Stock (25333)	Indirect
2014-12-09	Series A Preferred Stock	$1.00	P	38000	Acquired		Common Stock (38000)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.00	P	2303	Acquired	2019-12-09	Common Stock (2303)	Indirect
2014-05-30	Warrant to purchase Common Stock	$1.65	H	3455	Disposed	2019-05-30	Common Stock (3455)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.00	P	3455	Acquired	2019-05-30	Common Stock (3455)	Indirect

Footnotes

F1: On May 30, 2014, Vannogate Consulting Ltd. purchased a 9.5% Senior Convertible Debenture (the "Debenture") in the principal amount of $38,000. The Debenture was originally due and payable three years after the date of issuance and the principal and unpaid interest thereunder was convertible into shares of Common Stock of the issuer ("Common Stock") at the election of the holder any time prior to the maturity date at a conversion price equal to $1.50 per share, subject to adjustment upon the occurrence of certain events as provided in the Debenture. (continue with footnote 2)

F2: The terms of the Debenture were subsequently amended effective on December 1, 2014 (the "Debenture Amendment"), and as a result of such amendment, on December 9, 2014, the outstanding principal amount of $38,000 was converted into shares of Series A Preferred stock of the issuer ("Series A Preferred") at a conversion price equal to $1.00 per share. The Series A Preferred receive an automatically accruing dividend at a rate of 9.5% per annum and are convertible into shares of Common Stock at the election of the holder at any time, or automatically on June 30, 2017, at a conversion ratio of one share of Common Stock for one share of Series A Preferred, subject to adjustment upon the occurrence of certain events as provided in the Articles of Incorporation of the Company.

F3: The securities are held by Vannogate Consulting Ltd. The reporting person together with members of his immediate family own 100% of Vannogate Consulting Ltd.

F4: In connection with the Debenture Amendment, Vannogate Consulting Ltd. received a warrant to purchase 2,303 shares of Common Stock. The warrant has a term of five years from date of issuance and the exercise price is subject to adjustment upon the occurrence of certain events as provided in the warrant.

F5: In connection with the Debenture Amendment, the exercise price of an outstanding warrant to purchase 3,455 shares of Common Stock held by Vannogate Consulting Ltd. was reduced from $1.65 to $1.00 per share. The warrant has a term of five years from date of issuance and the exercise price is subject to adjustment upon the occurrence of certain events as provided in the warrant.