|12 Months Ended|
Sep. 30, 2021
Series B Convertible Preferred Stock
As of September 30, 2021 and 2020, respectively, there were 315,790 and 214,244 shares of Series B Preferred Stock issued and outstanding. The Series B Preferred Stock stockholders are entitled to dividends as declared by the Board of Directors in an amount equal to $1.00 per share (in the aggregate for all then-issued and outstanding shares of Series B Preferred Stock). The series does not have any redemption rights or stock basis, except as otherwise required by the Nevada Revised Statutes. The series does not provide for any specific allocation of seats on the Board of Directors. At any time, and from time to time, the shares of Series B Preferred Stock are convertible into shares of common stock at a ratio of one share of Series B Preferred Stock into five shares of common stock, subject to equitable adjustment in the event of forward stock splits and reverse stock splits.
The holders of shares of the Series B Stock have agreed not to sell transfer, assign, hypothecate, pledge, margin, hedge, trade, or otherwise obtain or attempt to obtain any economic value from any of such shares or any shares into which they may be converted (e.g., common stock) or for which they may be exchanged. This “lockup” agreement expires on December 31, 2021. Our Warrant Agreements with ICG have been amended to provide that the shares underlying those warrants are exercisable into shares of Series B Preferred Stock, which warrant shares are also subject to the same “lockup” agreement as the currently outstanding shares of Series B Preferred Stock.
Series E Convertible Preferred Stock
As of September 30, 2021 and 2020, there were 47,840 and 47,840 shares of Series E Convertible Preferred Stock issued and outstanding, respectively. During the year ended September 30, 2020, the Company repurchased 30,000 shares of Series E Convertible Preferred Stock for an aggregate purchase price of $3. The shares accrue dividends at the rate of 5% per annum on the liquidation preference per share, payable quarterly from legally available funds. The shares carry a cash liquidation preference of $0.30 per share, plus any accrued but unpaid dividends. If such funds are not available, dividends shall continue to accumulate until they can be paid from legally available funds. Holders of the preferred shares are entitled to convert them into shares of our common stock on a 1:0.005 basis together with payment of $85.50 per converted share.
During the years ended September 30, 2021 and 2020, the Company accrued dividends of approximately $720 and $1,000, respectively. As of September 30, 2021 and 2020, accrued dividends were approximately $200 and $1,000, respectively, payable to holders of Series E preferred stock.
As of September 30, 2021 and 2020, there were 1,582,334 and 1,589,101 shares of Common Stock issued and outstanding, respectively.
For year ended September 30, 2021 and 2020, the Company purchased 35,435 and 236,908 shares of its common stock on the open market (treasury shares), respectively, for approximately $421,000 and $1.7 million, respectively. Such shares are recorded on the Company’s Consolidated Balance Sheets as treasury stock.
2014 Omnibus Equity Incentive Plan
On January 7, 2014, our Board of Directors adopted the 2014 Omnibus Equity Incentive Plan (the “2014 Plan”), which authorizes issuance of distribution equivalent rights, incentive stock options, non-qualified stock options, performance stock, performance units, restricted ordinary shares, restricted stock units, stock appreciation rights, tandem stock appreciation rights and unrestricted ordinary shares to our directors, officer, employees, consultants and advisors. The Company has reserved up to 300,000 shares of common stock for issuance under the 2014 Plan. The Company’s stockholders approved the 2014 Plan on July 11, 2014.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef