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Subsequent Events
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 12. Subsequent Events

Note 12: Subsequent Events

 

Purchase of Customer List for SEC Compliance Services, Inc.

 

The Company acquired certain assets, primarily the rights to all customer contracts, of privately-held SEC Compliance Services, Inc. (“SECCS”) on January 4, 2012.  The purchase price of $425,000 consisted of cash proceeds of $275,000, transaction fees of $10,000, and 70,000 shares of common stock with a value of $140,000 based on the Company’s stock price of $2.00 per share on the close of business on January 4, 2012.  The Company borrowed $275,000 from it’s line of credit (see Note 6) to finance the transaction.

 

Issuance of non-qualified stock options

 

The Company issued options to purchase a total of 105,000 shares of common stock on January 20, 2012 to four former employees and consultants of SECCS.  The options will vest through December 31, 2012 upon the achievement of specified milestones related to the execution of annual contracts for XBRL services or revenue targets.

 

Increase in number of shares authorized under the 2010 Equity Incentive Plan (the “Plan”)

 

On January 20, 2012, the Company’s Board of Directors approved an increase in the number of shares authorized under the Plan from 220,416 to 420,416, subject to shareholder approval.