Preferred Stock and Common Stock

12 Months Ended

Dec. 31, 2015

Note 6. Preferred Stock and Common Stock

On September 30, 2014, the Company completed an offering to its preferred stockholders to convert its outstanding preferred stock into common stock, in addition to its accrued and outstanding preferred stock dividends, into common shares. As a result of this offering the holders of substantially all of the preferred stock agreed to convert and the Company agreed to issue 442,145 shares of common stock in conjunction with this conversion. The shares were issued on November 18, 2014.

Preferred stock dividends for Series A Preferred Stock are accrued for the year ended December 31, 2015 in the amount of $103,750. During 2012, due to the lack of cash flow, the Company offered to pay the accrued dividends in common stock in lieu of cash. Substantially all preferred shareholders accepted the common stock in lieu of cash and the common shares for these dividends. The total accrued but unpaid preferred stock dividends for Series A is $254,517 as of December 31, 2015.

As of December 31, 2015, Banyan Holdings owned 2,726,114 shares of Common stock.