Capital Stock

12 Months Ended

Dec. 31, 2014

Capital Stock [Text Block]

Note 14 – Capital Stock

	Number of Shares			Capital Stock
Issued and outstanding	2014	2013		2014		2013
Common shares, $0.01 par value	28,167,408	28,167,248	$	282	$	282
Class N preferred shares, $10.00 par value	575	579	$	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, the Company issued 1,000,000 shares in connection with its acquisition of HGP. On August 10, 2012, as discussed in Note 12, 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 12, the Co-CEOs returned the 800,000 shares in order to re-acquire the licensing agreements. The shares were cancelled.

     During the second quarter of 2013, the Company issued 21,500 shares due to option exercises. There were no option exercises during 2014.

     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 conversion 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 2014, 4 shares of the Company’s Class N preferred stock were converted into 160 shares of the Company’s common stock; during 2013, 13 shares of the preferred stock were converted into 520 shares of the Company’s common stock. At December 31, 2014 and 2013, of the 10,000,000 shares of preferred stock authorized, 9,486,500 remain undesignated and unissued.