Note 7. Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Equity

Dividends

During the years ended December 31, 2018 and 2017, we paid dividends totaling $460,000, or $0.15 per share, and $588,000 or $0.20 per share, respectively, to holders of shares of common stock.

Preferred stock and common stock

There were no issuances of preferred stock during the years ended December 31, 2018 and 2017. During the years ended December 31, 2018 and 2017, the Company had the following issuances of common stock in addition to stock issued pursuant to vesting of restricted stock units and exercise of options to purchase common stock:

● The Company issued 2,500 shares of common stock to consultants in exchange for services during the years ended December 31, 2018 and 2017, and recognized expense of $38,000 and $31,000, respectively, for the value of those shares.

● On July 3, 2018, the Company issued 3,402 shares as part of the acquisition of FSCwire and on October 2, 2017, the Company issued 25,235 shares as part of the acquisition of Interwest (see Note 4).

Secondary public offering

On August 17, 2018, the Company completed a secondary public offering of 806,451 shares of its common stock at a price to the public of $15.50 per share. In addition, the Company granted the underwriter a 30-day option to purchase an additional 120,967 shares of its common stock to cover over-allotments, which were sold on August 24, 2018. The aggregate gross proceeds of the offering were $14,375,000. Closing costs of $1,052,000, which consisted of underwriting commissions, legal and accounting fees and other offering expenses, were netted against the proceeds, which resulted in net proceeds to the Company of $13,323,000. The net proceeds of the offering are included in Additional paid-in capital on the Balance Sheet as of December 31, 2018.

Stock repurchase and retirement

On November 28, 2018, the Company entered into a Stock Repurchase Agreement with EQS Group AG (the “Stockholder”) whereby the Company agreed to purchase 215,118 shares (the “Repurchased Shares”) of the Company’s common stock, par value $0.001, from the Stockholder for a per share purchase price of $12.25, or an aggregate purchase price of $2,635,000. On December 5, 2018, the transaction closed and the Company acquired the Repurchased Shares and subsequently retired all of the Repurchased Shares.