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: 2014-12-08

Reporting Person: BRILON ROBERT J (President/CFO)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2014-03-09	9.5% Senior Convertible Debenture	$1.50	H	50000	Disposed	2016-12-20	Common Stock (50000)	Indirect
2014-03-09	9.5% Senior Convertible Debenture	$1.50	H	33333	Disposed	2017-03-04	Common Stock (33333)	Indirect
2014-12-09	Series A Preferred Stock	$1.00	P	125000	Acquired		Common Stock (125000)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.00	P	7576	Acquired	2019-12-09	Common Stock (7576)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.65	H	6818	Disposed	2018-12-20	Common Stock (6818)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.65	H	4545	Disposed	2019-03-04	Common Stock (4545)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.00	P	6818	Acquired	2018-12-20	Common Stock (6818)	Indirect
2014-12-09	Warrant to purchase Common Stock	$1.00	P	4545	Acquired	2019-03-04	Common Stock (4545)	Indirect
2014-12-08	Options (Right to buy)	$1.80	D	300000	Disposed	2023-12-01	Common Stock (300000)	Direct
2014-12-08	Options (Right to buy)	$1.70	D	100000	Disposed	2024-02-10	Common Stock (100000)	Direct
2014-12-08	Options (Right to buy)	$1.72	D	100000	Disposed	2024-05-02	Common Stock (100000)	Direct
2014-12-08	Options (Right to buy)	$1.00	A	500000	Acquired		Common Stock (500000)	Direct

Footnotes

F1: The reporting person purchased 9.5% Senior Convertible Debentures in the principal amounts of $75,000 and $50,000, on December 20, 3014 and March 4, 2014, respectively (the "Debentures"). The Debentures were 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 Debentures. (continue with footnote 2)

F2: The terms of the Debentures 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 $125,000 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: In connection with the Debenture Amendment, the reporting person received a warrant to purchase 7,576 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.

F4: In connection with the Debenture Amendment, the exercise price of outstanding warrants to purchase 11,363 shares of Common Stock held by the reporting person was reduced from $1.65 to $1.00 per share. The warrants have terms 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 warrants.

F5: The Securities are held in the IRA account of the reporting person.

F6: The reporting person agreed to cancellation of options granted to him on December 1, 2013, February 10, 2014 and May 2, 2014 in exchange for new options having a lower exercise price of $1.00 per share.

F7: The options subject to this grant vested 100% on the date of the grant.

F8: The options subject to this grant maintain the expiration dates of the options for which they were exchanged: 300,000 options subject to this grant expire on December 1, 2023; 100,000 options subject to this grant expire on February 10, 2024 and 100,000 options subject to this grant expire on May 2, 2024.