Capital Stock

12 Months Ended

Dec. 31, 2013

Capital Stock [Text Block]

Note 13 – Capital Stock

	Number of Shares			Capital Stock
Issued and outstanding	2013	2012		2013		2012
Common shares, $0.01 par value	28,167,248	28,945,228	$	282	$	290
Class N preferred shares, $10.00 par value	579	592	$	6	$	6

The Company’s authorized capital stock consists of 300,000,000 common shares, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $10.00 per share.

On February 29, 2012, as discussed in Note 2, the Company issued 1,000,000 shares in connection with its acquisition of HGP. On August 10, 2012, as discussed in Note 11, the Company issued 400,000 shares to each of its Co-CEOS, in exchange for intellectual property licensing agreements. On July 26, 2013, as also discussed in Note 11, the Co-CEOs returned the 800,000 shares in order to reacquire the licensing agreements. The shares were cancelled.

During the second quarter of 2013, the Company issued 21,500 shares due to option exercises. During the first and third quarters of 2012, the Company issued 17,778 and 10,000 shares, respectively, due to option exercises.

Each Class N preferred share has a voting entitlement equal to 40 common shares, votes with the common stock on an as-converted basis and is senior to all other preferred stock of the Company. Dividends, if any, will be paid on an as-converted basis equal to common stock dividends. The value of each Class N preferred share is $1,000.00, and each share is convertible to 40 common shares at the rate of $25.00 per common share. During 2013, 13 shares of the Company’s Class N preferred stock were converted into 520 shares of the Company’s common stock. There were no conversions during 2012. At December 31, 2013 and 2012, of the 10,000,000 shares of preferred stock authorized, 9,486,500 remain undesignated and unissued.