Quarterly report pursuant to Section 13 or 15(d)

Preferred Stock

Preferred Stock
6 Months Ended
Jun. 30, 2014
Equity [Abstract]  
Preferred Stock

Note 9 – Preferred Stock


Holders of the Company’s Preferred Stock are entitled to receive, when, as and if declared by our Board of Directors, out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 10.0% per annum of the $50.00 liquidation preference per share (equivalent to $5.00 per annum per share). Dividends are payable quarterly in arrears on the last day of each March, June, September and December when, as and if declared by our Board of Directors. For the quarter ended June 30, 2014, the Board declared a dividend of $1.25 per share, or a total of $1,973, on the Company’s Preferred Stock. Dividends for the six months ended June 30, 2014 were $3,947.


As defined in a provision of the Preferred Stock prospectus, the common shares reserved for issuance vary based on the number of authorized common shares. In January 2014, following a majority shareholder vote, the number of authorized shares of common stock was increased from 60,000,000 to 110,000,000 with a corresponding increase in the number of common shares reserved for a potential conversion to a maximum of 42,200,000 shares. Based on the Company’s closing common stock price of $11.65 per share on June 30, 2014, the Company has reserved 6,776,601 shares of its total authorized shares to satisfy a potential conversion that would be subject to the satisfaction of several conditions, including a change of control as defined in description of Preferred Stock.