Note 5. Convertible Preferred Stock

9 Months Ended

Sep. 30, 2013

Disclosure Text Block Supplement [Abstract]

Preferred Stock [Text Block]

5.    Convertible Preferred Stock. The shareholders have authorized 10,000,000 shares of preferred stock shares for issuance. The Board of directors authorized the issuance of up to 10,000 shares of Series 2010-A 10% Convertible Preferred Stock on July 29, 2010. Each preferred share is convertible into 1,000 common shares ($100 stated value per share divided by $0.10).  Dividends are payable quarterly at 10% per annum in cash or stock at the option of the preferred stock holder.  Stock dividend payments are valued at the higher of $0.10 per share of common stock or the average of the two highest volume weighted average closing prices for the 5 consecutive trading days ending on the trading day that is immediately prior to the dividend payment date.
 

There has been no Series 2010-A 10% Convertible Preferred Stock issued in the first nine months of 2013.

The Company accrued $24,293 of dividends on preferred stock during the first nine months of 2013.