Stockholders’ Equity |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Equity [Abstract] | |
| Stockholders’ Equity | Note D – Stockholders’ Equity
Common Stock
On March 11, 2020, the board of directors amended the Articles of Incorporation to increase the number of authorized common shares to with a par value of $ per share. On June 30, 2020 and December 31, 2019 there were and shares issued and outstanding respectively.
During the six months ended June 30, 2020 and 2019, unaffiliated holders of our convertible notes payable elected to convert $5,819 and $40,000 of principal into and shares of our common stock, respectively, and $8,021 and $2,685 in accrued interest into and shares of common stock, respectively, at prices per share discounted from the stock’s fair market value on each conversion date based on discount rates specified in each respective note.
In May 2019, the Company issued shares of common stock (“Returnable Shares) to a lender as a commitment fee. The Returnable Shares were to be returned to the Company if the note was fully repaid and satisfied prior to 180 days from the issue date. As such, the Returnable Shares were valued at $ fair market value on their date of issuance (the grant date), and their total value of $ was initially recorded as a prepaid expense. The underlying note was not repaid prior to 180 days from the issue date, and the value was expensed in full in November 2019.
Preferred Stock
Our Articles of Incorporation provide that we may issue up to shares of various series of preferred stock. Subject to the requirements of the Colorado Business Corporation Act, the Board of Directors may issue the preferred stock in series with rights and preferences as the Board of Directors may determine appropriate, without shareholder approval.
The Company has designated Series B Convertible Preferred shares, of which shares were issued and outstanding at June 30, 2020 and December 31, 2019. These Series B shares are convertible into common shares. There were issuances of Series B convertible preferred stock during the six months ended June 30, 2020 or 2019.
The Company has also designated shares of Series A Convertible Preferred Shares. These shares entitle the holder to $.01 per share dividend when declared by the Board of Directors, and 1,000 votes on all matters submitted to a vote by the shareholders. Each Series A convertible share may be converted into one share of our common stock. There were and shares of Series A convertible preferred stock at June 30, 2020 and December 31, 2019, respectively.
On January 15, 2020, Robert W. Ferguson, our CEO, and Fred J. Popke, our COO, were each issued shares of Series A convertible preferred stock in exchange for $25 each in services rendered. There were issuances of Series A convertible preferred stock during the six months ended June 30, 2019.
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