7. Preferred Stock

A summary of the Company’s preferred stock is as follows:

		September 30,
		2014
		Shares Issued &
Offering		Outstanding

Series A convertible		47,250
Series B convertible, 10% cumulative dividend		93,750
Series C convertible, 10% cumulative dividend		38,333
Series D convertible, 10% cumulative dividend		175,000
Series E convertible, 10% cumulative dividend		19,022
Total Preferred Stock		373,355

As of September 30, 2014, the Company had cumulative preferred undeclared and unpaid dividends. In accordance with the Financial Accounting Standard Board’s Accounting Standards Codification 260-10-45-11, “Earnings per Share”, these dividends were added to the net loss in the net loss per share calculation.

Summary of Preferred Stock Terms

Series A Convertible Preferred Stock
Liquidation Value:		$4.50 per share, $212,625
Conversion Price:		$103.034 per share
Conversion Rate:		0.04367—Liquidation Value divided by Conversion Price ($4.50/$103.034)
Voting Rights:		None
Dividends:		None
Conversion Period:		Any time

Series B Convertible Preferred Stock
Liquidation Value:		$4.00 per share, $375,000
Conversion Price:		$10.00 per share
Conversion Rate:		0.40—Liquidation Value divided by Conversion Price ($4.00/$10.00)
Voting Rights:		None
Dividends:		10%—Quarterly—Commencing March 31, 2001
Conversion Period:		Any time
Cumulative and undeclared dividends in arrears at September 30, 2014 were $510,206

Series C Convertible Preferred Stock
Liquidation Value:		$3.00 per share, $115,000
Conversion Price:		$6.00 per share
Conversion Rate:		0.50—Liquidation Value divided by Conversion Price ($3.00/$6.00)
Voting Rights:		None
Dividends:		10%—Quarterly—Commencing March 31, 2002
Conversion Period:		Any time
Cumulative and undeclared dividends in arrears at September 30, 2014 were $148,514

Series D Convertible Preferred Stock
Liquidation Value:		$10.00 per share, $1,750,000
Conversion Price:		$10.00 per share
Conversion Rate:		1.00—Liquidation Value divided by Conversion Price ($10.00/$10.00)
Voting Rights:		None
Dividends:		10%—Quarterly—Commencing April 30, 2002
Conversion Period:		Any time
Cumulative and undeclared dividends in arrears at September 30, 2014 were $656,250

Series E Convertible Preferred Stock
Liquidation Value:		$22.00 per share, $418,488
Conversion Price:		$8.00 per share
Conversion Rate:		2.75—Liquidation Value divided by Conversion Price ($22.00/$8.00)
Voting Rights:		Equal in all respects to holders of common shares
Dividends:		10%—Quarterly—Commencing May 31, 2002
Conversion Period:		Any time
Cumulative and undeclared dividends in arrears at September 30, 2014 were $547,624