Shareholders' Equity

9 Months Ended

Sep. 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 its 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 quarterly cash dividends of $191,194 and a special cash dividend of $1,911,943 to its shareholders of record as of May 21, 2012.

On August 31, 2012, the Company distributed quarterly dividends of $220,550 in cash to its shareholders. The Board of Directors approved the quarterly dividend of $.015 per share.