Series A Convertible Preferred Stock

9 Months Ended

Sep. 30, 2015

Notes

Series A Convertible Preferred Stock

5. SERIES A CONVERTIBLE PREFERRED STOCK

 On March 31, 2015 the Company’s board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Company’s working capital at this time and not make the annual dividend payment for the year ending December 31, 2014.  As a result, pursuant to the Certificate of Designations, Preferences, and Rights of the Series A Convertible Preferred Stock, each share of the Series A Convertible Preferred Stock shall hereafter be entitled to two votes upon any matter that the holders of the Company’s common stock are entitled to vote.

The amortization of the increasing dividend rate preferred stock discount for the three and nine months ended September 30, 2015 was $13,449 and $40,348, respectively.  The amortization of the increasing dividend rate preferred stock discount for the three and nine months ended September 30, 2014 was $15,131 and $45,393, respectively.