Common and Preferred Stock

12 Months Ended

Dec. 31, 2013

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note 6. Common and Preferred Stock

Common Stock

During 2013, the four non-employee board members each received 6,000 shares of common stock of the Company with an aggregate value of $ 31,320. In addition, the Chief Executive Officer received 2,000 shares of common stock of the Company with a value of $2,200. These transactions were recorded as non cash stock compensation expense in the financial statements.

During 2012, the four non-employee board members each received 6,000 shares of common stock of the Company with an aggregate value of $33,360. This was recorded as non cash stock compensation expense in the financial statements.

Preferred Stock

Shares of preferred stock authorized and outstanding at December 31, 2013 and 2012 were as follows:

	Shares		Shares
	Authorized		Outstanding
Cumulative Preferred Stock	10,000		-
Voting Preferred Stock	125,000		-
Cumulative Non-Voting Preferred Stock	125,000	(a)	24,152

(a) Includes 700 shares of Series A Preferred Stock and 100,000 shares of Convertible Series B Preferred Stock authorized for issuance.

In January 1996, the Company completed an offering of 70,000 shares of $10 stated value 1995 Series B 10% cumulative non-voting convertible preferred stock. The shares are convertible to common shares at the rate of $5.00 per share. At the Company’s option, the Series B shares are redeemable at 103% of the stated value plus the amount of any accrued and unpaid cash dividends.

The Board of Directors voted not to authorize the payment of a cash dividend on convertible preferred stock, Series B, to shareholders of record as of December 31, 2013 and 2012. At December 31, 2013 and 2012 the Company had accrued dividends on Series B preferred stock of $193,216 and $169,064, respectively. These amounts are included in convertible preferred stock, Series B on the balance sheet at December 31, 2013 and 2012.

Earnings Per Share

Basic income (loss) per share is calculated as income available (loss attributable) to common shareholders divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as diluted income available (loss attributable) to common stockholders divided by the diluted weighted average number of common shares outstanding. Diluted weighted average number of common shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive. For the years ended December 31, 2013 and 2012, all convertible and preferred stock and common stock options listed in Note 7 were excluded from diluted earnings per share due to being out-of-the-money or anti-dilutive.

Following is a summary of employee and director outstanding stock options outstanding and preferred stock, Series B at December 31, 2013 and 2012.

	December 31,	December 31,
	2013	2012
Options	706,500	842,250
Preferred Stock, Series B	24,152	24,152
	730,652	866,402

The following is provided to reconcile the earnings per share calculations:

	2013		2012
Loss applicable to common stock	$	(311,798)	$	(350,124)
Weighted average common shares outstanding - basic		3,839,117		3,814,996
Effect of dilutions - stock options		-		-
Weighted average shares outstanding - diluted		3,839,117		3,814,996