Preferred Stock and Common Stock

6 Months Ended

Jun. 30, 2015

Note 5. Preferred Stock and Common Stock

Preferred stock dividends for Series A Preferred stock are accrued for the semi-annual period ended June 30, 2015 in the amount of $51,875. During 2012, due to the lack of cash flow, the Company offered to pay the accrued dividends in common stock in lieu of cash. In January of 2015, we issued 10,921 shares of common stock in lieu of $29,250 of cash dividends for dividends accrued through December 31, 2014. Substantially all preferred shareholders accepted the common stock in lieu of cash and the common shares for these dividends.

At June 30, 2015, the Company had received subscriptions for 100,000 shares of common stock in the amount of $18,000. The cash received from these subscriptions will be used to fund the working capital requirements of the Company. The shares will be issued upon receipt of the completed subscription documents.

As of June 30, 2015, directors owned 5,976,375 shares of Common stock or 68.4% of all outstanding common shares.