SUBSEQUENT EVENTS	9 Months Ended
Sep. 30, 2014
Notes to Financial Statements
Note 11 - SUBSEQUENT EVENTS	Settlement of Blue Spike Matter On August 21, 2012, a complaint for patent infringement was filed by Blue Spike, LLC (“Blue Spike”) against the Company in the United States District Court for the Eastern District of Texas, entitled Blue Spike, LLC v. ImageWare Systems, Inc., Case No. 12-cv-688-LED. The four patents-in-suit were related to digital signal abstracting technology (the “Patents”). On October 20, 2014, the Company and Blue Spike entered into a Settlement and License Agreement (the “Settlement Agreement), wherein Blue Spike agreed to release the Company from all present and/or future claims in exchange for the Company’s purchase of a license to the Patents for a one-time $40,000 royalty payment. In connection with the Settlement Agreement and Blue Spike’s release of all claims against the Company, on October 23, 2014, the Court dismissed all claims against the Company with prejudice. Borrowings under Line of Credit In October and November of 2014, we borrowed an aggregate of $1,000,000 under one of the existing Lines of Credit, as defined in Note 5, “Notes Payable and Lines of Credit”, for working capital purposes. We currently have remaining available borrowing capacity under the Lines of Credit aggregating $2,500,000. The Lines of Credit expire on March 27, 2015, and all amounts due and payable thereunder are required to be repaid at that time, unless the maturity date is extended or the outstanding balance is converted into shares of common stock at the option of the holder. Exercise of Warrants In November 2014, the Company issued 100,000 shares of common stock pursuant to the exercise of 100,000 warrants resulting in proceeds to the Company of $50,000.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2014

Settlement of Blue Spike Matter

On August 21, 2012, a complaint for patent infringement was filed by Blue Spike, LLC (“Blue Spike”) against the Company in the United States District Court for the Eastern District of Texas, entitled Blue Spike, LLC v. ImageWare Systems, Inc., Case No. 12-cv-688-LED. The four patents-in-suit were related to digital signal abstracting technology (the “Patents”). On October 20, 2014, the Company and Blue Spike entered into a Settlement and License Agreement (the “Settlement Agreement), wherein Blue Spike agreed to release the Company from all present and/or future claims in exchange for the Company’s purchase of a license to the Patents for a one-time $40,000 royalty payment. In connection with the Settlement Agreement and Blue Spike’s release of all claims against the Company, on October 23, 2014, the Court dismissed all claims against the Company with prejudice.

Borrowings under Line of Credit

In October and November of 2014, we borrowed an aggregate of $1,000,000 under one of the existing Lines of Credit, as defined in Note 5, “Notes Payable and Lines of Credit”, for working capital purposes. We currently have remaining available borrowing capacity under the Lines of Credit aggregating $2,500,000. The Lines of Credit expire on March 27, 2015, and all amounts due and payable thereunder are required to be repaid at that time, unless the maturity date is extended or the outstanding balance is converted into shares of common stock at the option of the holder.

Exercise of Warrants

In November 2014, the Company issued 100,000 shares of common stock pursuant to the exercise of 100,000 warrants resulting in proceeds to the Company of $50,000.