STOCKHOLDERS EQUITY

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

STOCKHOLDERS EQUITY

NOTE 11 - STOCKHOLDERS’ EQUITY

Common stock

During the year ended December 31, 2012 the Company issued 3,380,210 common shares for cash for total proceeds of $2,794,339.   The Company also incurred stock issuance costs of $445,850 for the years ended December 31, 2012.

During the year ended December 31, 2012, the Company issued 3,599,460 shares of common stock on conversion of 3,599,460 shares of Series B Preferred stock at the rate of $1 per share.

During the year ended December 31, 2012, the Company declared dividends amounting to $357,573.  The stockholders were given an option to receive such dividends in cash or stock and as a result, 144,360 common shares were issued.  For the year ended December 31, 2012, total dividends paid amounted to $466,136 which includes the $108,563 that was declared in 2011. All of the above dividends were determined to be liquidating as the Company did not have any retained earnings.  Consequently, all dividends declared were charged to additional paid in capital.

During the year ended December 31, 2013, the Company recorded the cancelation of 12,849 common shares that had been erroneously issued. There were no issuances of common stock for the year ended December 31, 2013.

Redeemable Series A Preferred Stock

The Company is authorized to issue 5,500,000 shares of Series A preferred stock.

The holders of Series A preferred stock have no dividend rights, no voting rights and no conversion rights. The Corporation has the right, but not the obligation, to the extent it may lawfully do so, at any time and from time to time to repurchase and redeem from the holders all or any portion of the then outstanding shares of Series A preferred stock at $1 per share.

There were no issuances of the Redeemable Series A preferred stock for the year ended December 31, 2013 and for the year ended December 31, 2012.

Convertible Series B Preferred Stock

The Company is authorized to issue 5,000,000 shares of Series B preferred stock.

The holders of Series B preferred stock shall have the right to receive dividends at the rate of $0.12 per share, when and if declared by the board. These dividends will be cumulative. Each share of Series B shall be convertible into common stock at the option of the holder at any time after the date of issuance.

There were no issuances of the Convertible Series B preferred stock for the year ended December 31, 2013.

During the year ended December 31, 2012 the Company issued 70,000 Series B preferred shares for proceeds of $70,000.  The Company also incurred stock issuance costs of $17,500 in the year ended December 31, 2012.  In January 2012, the Company converted all of the Series B Preferred stock to common shares.