Note 9 - Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 9. STOCKHOLDERS’ EQUITY

Classes of Shares

As of June 30, 2022, Enterprise Diversified, Inc.’s Articles of Incorporation, as amended, authorize an aggregate of 40,000,000 shares of capital stock of Enterprise Diversified, Inc., consisting of 30,000,000 authorized shares of serial preferred stock, par value of $0.001 per share, and 10,000,000 authorized shares of common stock, par value of $0.125 per share.

Preferred Stock

As of June 30, 2022, Enterprise Diversified, Inc. had no issued shares of its preferred stock.

As previously reported in the Company’s Current Report on Form 8-K filed with the SEC on July 29, 2020, Enterprise Diversified, Inc. adopted a certain stockholder rights agreement styled as the Tax Benefit Preservation Plan, dated as of July 24, 2020, by and between Enterprise Diversified, Inc. and Colonial Stock Transfer Company, Inc., as rights agent.

During the quarterly period ended June 30, 2022, as reported in the Company’s Current Report on Form 8-K filed with the SEC on April 6, 2022, Enterprise Diversified, Inc. executed an Amendment to the Tax Benefit Preservation Plan on April 1, 2022.  The Amendment was entered into pursuant to the determination by Enterprise Diversified, Inc.’s Board of Directors to amend the Tax Benefit Preservation Plan to accelerate the expiration of the rights thereunder to the close of business on April 5, 2022, thereby effectively terminating the Tax Benefit Preservation Plan as of such time.

Common Stock

As of June 30, 2022, 2,647,383 shares of Enterprise Diversified, Inc. common stock were issued and outstanding.

As previously reported in the Company’s Current Report on Form 8-K Amendment No. 1 filed with the SEC on July 8, 2021, Enterprise Diversified, Inc. filed a Certificate of Amendment to its Articles of Incorporation with the Nevada Secretary of State on June 16, 2021, increasing the number of shares of common stock, par value of $0.125 per share.