Note 6 - Preferred Stock

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Preferred Stock [Text Block]

6. Preferred Stock

SGRP's certificate of incorporation authorizes it to issue

3,000,000

shares of preferred stock with a par value of

$0.01

per share (the "SGRP Preferred Stock"), which

may

have such preferences and priorities over the SGRP Common Stock and other rights, powers and privileges as the Company's Board of Directors

may

establish in its discretion from time to time. The Company has created and authorized the issuance of a maximum of

3,000,000

shares of Series A Preferred Stock pursuant to SGRP's Certificate of Designation of Series "A" Preferred Stock (the "SGRP Series A Preferred Stock"), which have dividend and liquidation preferences, have a cumulative dividend of

10%

per year, are redeemable at the Company's option and are convertible at the holder's option (and without further consideration) on a

one

-to-

one

basis into SGRP Common Stock. The Company issued

554,402

of SGRP shares to affiliated retirement plans, which were all converted into common shares in

2011

(including dividends earned thereon), leaving

2,445,598

shares of remaining authorized preferred stock. At

March 31, 2019,

no

shares of SGRP Series A Preferred Stock were issued and outstanding.