Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Shareholders' Equity

Note 4: Shareholders’ Equity

The Company began paying dividends during the year ended December 31, 2012. The Company distributed dividends of $2,589,011 in cash to its shareholders during the year ended December 31, 2012. For the three and six months ending June 30, 2013, the Company paid dividends of $267,381and $533,383 respectively.

On March 8, 2013, in connection with a consulting agreement, the Company issued 63,868 shares of common stock in exchange for services. See Note 2 for more discussion.

On April 8, 2013, the Company issued a total of 8,880 of the Company’s common stock to the directors.

On May 22, 2013 the Company entered into an investment agreement. Pursuant to the investment agreement, the Company may issue and sell to the investor, up to that number of shares of the Company’s common stock having an aggregate purchase price of $2.5 million, over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares. The purchase price shall be set at 92% of the lowest daily volume weighted average price of the Common Stock during the five consecutive trading day period beginning on the date of delivery of the applicable draw down notice.

On June 20, 2013, as part of the investment agreement, the Company filed with the Securities Exchange Commission a Form S-1 for the registration of its Common Stock, $.001 par value.  The amount of shares to be registered was 2.5 million. The S-1 became effective on June 27, 2013. No shares were issued during the period covered by this report.