Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Comprehensive Loss and Stockholders' Equity [Abstract]

Stockholders' Equity

16. Stockholders’ Equity

Series A convertible preferred stock

As part of the purchase price to acquire StarTrak, the Company issued 183,550 shares of Series A convertible preferred stock.

Key terms of the Series A convertible preferred stock are as follows:

Dividends

Holders of the Series A convertible preferred stock are entitled to receive a cumulative 4% dividend annually (calculated on the basis of the redemption price of $10.00 per share) payable quarterly in additional shares of the Series A convertible preferred stock. During the three months ended September 30, 2011, the Company issued a dividend in the amount of 905 shares to the holders of the Series A Convertible preferred stock. As of September 30, 2011, dividends in arrears was $18.

Conversion

Shares of the Series A convertible preferred stock are convertible into 1.66611 shares of common stock: (i) at the option of the holder at any time or (ii) at the option of the Company beginning six months from the issuance date and if the average closing market price for the Company’s common stock for the preceding twenty consecutive trading days equals or exceeds $11.20 per share.

Voting

Each share of the Series A convertible preferred stock is entitled to one vote for each share of common stock into which the preferred stock is convertible.

Liquidation

In the event of any liquidation, sale or merger of the Company the holders of the Series A convertible preferred stock are entitled to receive prior to and in preference over the common stock, an amount equal to $10.00 per share plus unpaid dividends.

Redemption

The Series A convertible preferred stock may be redeemed by the Company for an amount equal to the issuance price of $10.00 per share plus all unpaid dividends at any time after two years from the issuance date.

Common Stock

During the nine months ended September 30, 2011, the Company issued 34,115 shares of its common stock as a form of payment for bonuses.

As of September 30, 2011, the Company has reserved 9,203,697 shares of common stock for future issuances related to employee stock compensation plans.