Note C - Stockholders' Equity

6 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE C - STOCKHOLDERS' EQUITY

During

January 1995,

the Company's Board of Directors authorized the issuance of up to

4,000,000

shares of Series A Cumulative Convertible Preferred Stock ("Series A Preferred Stock"). The preferred stockholders are entitled to receive, as and if declared by the board of directors, quarterly dividends at an annual rate of

$.10

per share of Series A Preferred Stock per annum. Dividends will accrue without interest and will be cumulative from the date of issuance of the Series A Preferred Stock and will be payable quarterly in arrears in cash or publicly traded common stock when and if declared by the Board of Directors. As of

December 31, 2019,

no

dividends have been declared. Dividends in arrears on the outstanding preferred shares total

$378,952

as of

December 31, 2019.

Holders of the Preferred Stock have the right to convert their shares of Preferred Stock into an equal number of shares of Common Stock of the Company. In addition, Preferred Stock holders have the right to vote the number of shares into which their shares are convertible into Common Stock. Such preferred shares will automatically convert into

one

share of Common Stock at the close of a public offering of Common Stock by the Company provided the Company receives gross proceeds of at least

$1,000,000,

and the initial offering price of the Common Stock sold in such offering is equal to or in excess of

$1

per share. The Company is obligated to reserve an adequate number of shares of its common stock to satisfy the conversion of all the outstanding Series A Preferred Stock. There were

no

shares converted during the reporting period. So long as any share of Series A Preferred Stock is outstanding, the Company is prohibited from declaring dividends or other distributions related to its Common Stock or purchasing, redeeming or otherwise acquiring any of the Common Stock.