Annual report pursuant to Section 13 and 15(d)

10. CAPITAL STOCK

v2.4.0.6
10. CAPITAL STOCK
12 Months Ended
Dec. 31, 2012
Capital Stock  
NOTE J - CAPITAL STOCK

The Company has authorized 15,000,000 shares of preferred stock (designated and undesignated), with a par value of $.001 per share. As of December 31, 2012 and 2011 the Company has 215 and 538 shares of preferred stock designated and 185 and 493 shares issued and outstanding, designated Series A and B preferred stock, respectively.

 

The Company has authorized 190,000,000 shares of common stock with a par value of $.001 per share. As of December 31, 2012 and 2011 the Company has 108,103,001 and 104,349,507 common shares issued and outstanding, respectively.

 

During the year ended December 31, 2012, the Company issued 638,104 shares of common stock to directors and management for services performed through December 31, 2012.  These shares were valued at $102,000, which approximated the fair value of the shares when they were issued.

 

During the year ended December 31, 2012, 3,115,390 of Series B preferred stock warrants were exercised to an equal number of common shares at an exercise price of $0.13 per share. Proceeds received from these exercised warrants were $405,000.

 

During the year ended December 31, 2011, the Company issued 769,709 shares of common stock to directors and management for services performed through December 31, 2011.  These shares were valued at $117,000, which approximated the fair value of the shares when they were issued. In addition, 177,083 shares were issued to a current member of the Company’s Board of Directors for consulting fees incurred prior to, but not paid until after, his election to Board of Directors. These shares were valued at $25,000.

 

During the year ended December 31, 2011, 30 shares of Series A redeemable preferred stock were converted to 413,223 shares of common stock and 45 shares of Series B redeemable preferred stock were converted to 1,730,767 shares of common stock.