Shareholders' Equity

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Shareholders' Equity

Note 3: Shareholders’ Equity

During February and March of 2011, the Company issued and sold 400,000 shares of the Company’s common stock at $0.25 per share.  The sale of the common stock resulted in gross proceeds of $100,000 and net proceeds of $96,816 to the Company after deducting offering costs of $3,184.

On May 8, 2012 the Company filed with the Securities Exchange Commission form S-1 for the registration of their Common Stock, $.001 par value.  The amount of shares to be registered was 800,000. On May 9, 2012, the warrant to purchase 800,000 shares of common stock at an exercise price of $.625 per share was exercised with total proceeds to the Company of $500,000 (see Note 2: Commitments and Contingencies).

On May 31, 2012, the Company distributed a $0.013 per share quarterly cash dividend and a $0.13 per share special cash dividend to its shareholders of record as of May 21, 2012.