Note 6 - Preferred Stock and Common Stock

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

6.

Preferred Stock and Common Stock

Preferred Stock Dividends

The holder of Preferred Stock is entitled to receive cumulative, non-compounded cash dividends on each outstanding share of Preferred Stock at the rate of

10%

of the Issuance Price per annum (“Preferred Dividends”), which began to accrue on

January 1, 2010.

Preferred Dividends are payable semiannually to the holder of Preferred Stock. Any Preferred Dividends due and unpaid on any Payment Date, whether or

not

declared by the board of directors, shall accrue with any other due and unpaid Preferred Dividends, regardless of whether there are profits, surplus or other funds of the Company legally available for payment of dividends.

Substantially all the Preferred stockholders had previously agreed to accept common stock in lieu of cash for payment of Preferred Dividends. In

February 2016,

the Company issued

29,856

shares of common stock in lieu of

$29,249

of Preferred Dividends for those Preferred stockholders who accepted the common stock in lieu of the cash offer. The total accrued but unpaid Preferred Dividends is

$27,361

as of

September 30, 2019

and

December 31, 2018.

An additional

$13,750

and

$10,000

of cumulative Preferred Dividends are undeclared and unaccrued as of

September 30, 2019

and

December 31, 2018,

respectively, and are

not

included in the balance sheet.

Common Stock

As of

September 30, 2019

the Company’s board of directors and officers beneficially own

838,060

shares of the Company’s common stock or

32.10%

of the outstanding common stock. Included in the

838,060

shares are

475,314

shares owned by Marino Family Holdings LLC which is controlled by our chairman, Gary O. Marino.

79,703

shares are held by the Marino Family Dynasty Trust.