STOCKHOLDERS’ EQUITY

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

STOCKHOLDERS’ EQUITY

5. STOCKHOLDERS’ EQUITY

Preferred Stock

The Company has authorized 10,000,000 shares of preferred stock. These shares may be issued in series with such rights and preferences as may be determined by the board of directors.

Series A Convertible Redeemable Preferred Stock

The Company’s Board of Directors has authorized 2,000,000 shares of $2.00 stated value, Series A Preferred Stock. The preferred stock has a senior liquidation preference value of $2.00 per share and does not bear dividends.

As of December 31, 2023, and 2022, the Company has 200,500 shares of Series A Preferred Stock outstanding.

Series D Convertible Preferred Stock

The Company has established a class of preferred stock designated “Series D Convertible Preferred Stock” (Series D preferred stock) and authorized an aggregate of 1,000,000 non-voting shares with a stated value of $1.00 per share. Holders of the Series D preferred stock are entitled to receive dividends at the annual rate of 8% based on the stated value per share computed on the basis of a 360-day year and twelve 30-day months. Dividends are cumulative, shall be declared quarterly, and are calculated from the date of issue and payable on the 15th day of April, July, October, and January. The dividends may be paid, at the option of the holder either in cash or by the issuance of shares of the Company’s common stock valued at the market price on the dividend record date. Shares of the Series D preferred stock are redeemable at the Company’s option. At the option of the holder, shares of the Series D preferred stock plus any declared and unpaid dividends are convertible to shares of the Company’s common stock at a conversion rate of $1.00 per share.

As of December 31, 2023, and 2022, the Company had 375,000 shares of Series D Preferred Stock outstanding.

For years ended December 31, 2023, and 2022, the Company declared $30,000 and $30,000 in preferred dividends, respectively. During the years ended December 31, 2023, and 2022, the Company paid $6,900 and $30,000, respectively, for Series D preferred stock dividends. Dividends declared of $7,500 were accrued as of December 31, 2021, were paid in 2022. Declared dividends of $7,500 were accrued as of December 31, 2022 and were paid in 2023.

Common Stock

The Company’s Board of Directors has authorized 50,000,000 shares of $0.05 par value, Common Stock. As of December 31, 2023, and 2022, the Company has 3,054,587 shares of common stock outstanding, respectively.

There were no repurchases performed in the 2023 year.

Common Stock Warrants

As of December 31, 2023, and December 31, 2022, the Company had 177,500 and 206,000, respectively, of outstanding warrants to purchase common stock at a weighted average exercise price of $5.00 and $5.00, respectively, and weighted average remaining term of 0.5 years and 1.67 years, respectively. The aggregate intrinsic value of common stock warrants outstanding as of December 31, 2023, and December 31, 2022 was $0.

	Year Ended December 31,
	2023					2022
	Number of			Weighted Average		Number of		Weighted Average
	Warrants			Exercise Price		Warrants		Exercise Price
Beginning Balance		206,000		$	5.00		206,000	$	5.00
Issued		177,500			-		-		-
Cancelled		-			-		-		-
Exercised					-		-		-
Expired		(206,000	)		-		-		-
Ending Balance		177,500		$	5.00		206,000	$	5.00

Common Stock Options

On January 6, 2022, the Company issued a three-year option to purchase 30,000 shares of our common stock at $6.00 per share. As of December 31, 2023 and December 31, 2022, the Company had a total of 30,000 outstanding options to purchase common stock. The aggregate intrinsic value of common stock options outstanding as of December 31, 2023, and December 31, 2022 was $0.

	Year Ended December 31,
	2023				2022
	Number of		Weighted Average		Number of		Weighted Average
	Options		Exercise Price		Options		Exercise Price
Beginning Balance		30,000	$	6.00		30,000	$	6.00
Issued		-		-		-		-
Cancelled		-		-		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Ending Balance		30,000	$	6.00		30,000	$	6.00