Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information Abstract | ||
Entity Registrant Name | INTRUSION INC | |
Entity Central Index Key | 736,012 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,747,836 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 246 | $ 102 |
Accounts receivable | 743 | 580 |
Inventories | 45 | 45 |
Prepaid expenses | 101 | 69 |
Total current assets | 1,135 | 796 |
Property and equipment, net | 412 | 486 |
Other assets | 42 | 43 |
TOTAL ASSETS | 1,589 | 1,325 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 931 | 840 |
Dividends payable | 195 | 160 |
Line of credit | 364 | |
Obligations under capital lease, current portion | 178 | 197 |
Deferred revenue | 119 | 386 |
Total current liabilities | 1,787 | 1,583 |
Loan payable to officer | 2,055 | 1,530 |
Obligations under capital lease, noncurrent portion | $ 108 | $ 139 |
Commitments and contingencies | ||
Stockholders' Deficit: | ||
Common stock, $0.01 par value: Authorized shares - 80,000; Issued shares - 12,758 as of March 31, 2016 and 12,622 as of December 31, 2015; Outstanding shares - 12,748 as of March 31, 2016 and 12,612 as of December 31, 2015 | $ 127 | $ 126 |
Common stock held in treasury, at cost - 10 shares | (362) | (362) |
Additional paid-in-capital | 56,629 | 56,520 |
Accumulated deficit | (60,491) | (59,947) |
Accumulated other comprehensive loss | (107) | (107) |
Total stockholders' deficit | (2,361) | (1,927) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 1,589 | 1,325 |
Series 1 | ||
Stockholders' Deficit: | ||
Preferred stock | 707 | 707 |
Series 2 | ||
Stockholders' Deficit: | ||
Preferred stock | 724 | 724 |
Series 3 | ||
Stockholders' Deficit: | ||
Preferred stock | $ 412 | $ 412 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares | 5,000 | 5,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, Authorized shares | 80,000 | 80,000 |
Common stock, Issued shares | 12,758 | 12,622 |
Common stock, Outstanding shares | 12,748 | 12,612 |
Common stock held in treasury, shares | 10 | 10 |
Series 1 | ||
Preferred stock, shares issued | 200 | 200 |
Preferred stock, shares outstanding | 200 | 200 |
Preferred stock, Liquidation preference (in dollars per share) | $ 1,075 | $ 1,063 |
Series 2 | ||
Preferred stock, shares issued | 460 | 460 |
Preferred stock, shares outstanding | 460 | 460 |
Preferred stock, Liquidation preference (in dollars per share) | $ 1,227 | $ 1,212 |
Series 3 | ||
Preferred stock, shares issued | 289 | 289 |
Preferred stock, shares outstanding | 289 | 289 |
Preferred stock, Liquidation preference (in dollars per share) | $ 673 | $ 665 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net product revenue | $ 1,511 | $ 1,704 |
Net customer support and maintenance revenue | 10 | |
Total revenue | 1,511 | 1,714 |
Cost of product revenue | 539 | 629 |
Cost of customer support and maintenance revenue | 3 | |
Total cost of revenue | 539 | 632 |
Gross profit | 972 | 1,082 |
Operating expenses: | ||
Sales and marketing | 428 | 498 |
Research and development | 730 | 538 |
General and administrative | 327 | 331 |
Operating loss | (513) | (285) |
Interest expense, net | (31) | (25) |
Net loss | (544) | (310) |
Preferred stock dividends accrued | (35) | (34) |
Net loss attributable to common stockholders | $ (579) | $ (344) |
Net loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.05) | $ (0.03) |
Diluted (in dollars per share) | $ (0.05) | $ (0.03) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 12,703 | 12,555 |
Diluted (in shares) | 12,703 | 12,555 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net loss | $ (544) | $ (310) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 74 | 74 |
Stock-based compensation | 42 | 68 |
Penalties and waived penalties on dividends | 4 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (163) | 29 |
Prepaid expenses and other assets | (31) | 16 |
Accounts payable and accrued expenses | 91 | 114 |
Deferred revenue | (267) | (408) |
Net cash used in operating activities | (794) | (415) |
Investing Activities: | ||
Purchases of property and equipment | (44) | |
Financing Activities: | ||
Proceeds from line of credit | 364 | |
Borrowings on loan from officer | 525 | |
Proceeds from stock options exercised | 99 | 66 |
Principal payments on capital lease equipment | (50) | (53) |
Net cash provided by financing activities | 938 | 13 |
Net increase (decrease) in cash and cash equivalents | 144 | (446) |
Cash and cash equivalents at beginning of year | 102 | 1,006 |
Cash and cash equivalents at end of year | 246 | 560 |
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES: | ||
Preferred stock dividends accrued | $ 35 | 34 |
Purchase of equipment through capital lease | $ 154 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2016 | |
Description of Business | |
Description of Business | 1. Description of Business We develop, market and support a family of entity identification, high speed data mining, cybercrime and advanced persistent threat detection products. Our product families include: · TraceCop™ for identity discovery and disclosure, · Savant™ for network data mining and advanced persistent threat detection. We market and distribute our products through a direct sales force to: · end-users, · value-added resellers, · system integrators, · managed service providers, and · distributors. Our end-user customers include: · U.S. federal government entities, · local government entities, · banks, · airlines, · credit unions, · other financial institutions, · hospitals and other healthcare providers, and · other customers. Essentially, our end-users can be defined as any end-users requiring network security solutions for protecting their mission critical data. We were organized in Texas in September 1983 and reincorporated in Delaware in October 1995. Our principal executive offices are located at 1101 East Arapaho Road, Suite 200, Richardson, Texas 75081, and our telephone number is (972) 234-6400. Our website URL is www.intrusion.com. References to the “Company”, “we”, “us”, “our”, “Intrusion” or “Intrusion Inc.” refer to Intrusion Inc. and its subsidiaries. TraceCop and Savant are trademarks of Intrusion Inc. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Item 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The December 31, 2015 balance sheet was derived from audited financial statements, but does not include all the disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented not misleading. In our opinion, all the adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. The results of operations for the three month period ended March 31 , 2016 are not necessarily indicative of the results that may be achieved for the full fiscal year or for any future period. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 29 , 2016. The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of the line of credit payable approximates fair value since this instrument bears market interest rates. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third party financing, and as such cannot estimate the fair value of the loans payable to officer. None of these instruments are held for trading purposes. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | |
Inventories | 3. Inventories (In thousands) March 31, 2016 December 31, 2015 Inventories consist of: Finished products Net inventory $ |
Loan Payable to Officer
Loan Payable to Officer | 3 Months Ended |
Mar. 31, 2016 | |
Loan Payable to Officer | |
Loan Payable to Officer | 4. Loan Payable to Officer On February 5, 2015, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2016. On February 4, 2016, the Company renewed the CEO note described above on the same terms, with the Company being able to borrow, repay and reborrow on the note as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2018. Amounts borrowed from this officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% at March 31, 2016). All outstanding borrowings and accrued but unpaid interest is due on March 31, 2018. As of March 31, 2016, the borrowings outstanding totaled $2,055,000 and accrued interest totaled $99,000. |
Line of Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2016 | |
Line of Credit | |
Line of Credit | 5. Line of Credit On March 29, 2006, we entered into a Loan and Security Agreement with SVB’s to establish a $1.0 million line of credit (the “2006 Credit Line”). On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 23, 2015, we entered into the Seventh Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”). Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property. In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit. Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”). SVB may make an Advance of up to eighty percent (80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion. As of March 31, 2016, we had $78,000 in funding available. Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%. Finance charges are payable at the same time its related Advance is due. Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement. The collateral handling fee is payable at the same time its related Advance is due. Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account. We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement. On June 21, 2016, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents. As of March 31, 2016, we had $364,000 net borrowings outstanding under the Current Line of Credit and are within limits of all debt covenants. As of March 31, 2015, we had no borrowings outstanding under the current Line of Credit. The Company expects to renew the Loan Agreement before the termination date but can provide no assurance that this will occur. |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting for Stock-Based Compensation | |
Accounting for Stock- Based Compensation | 6. Accounting for Stock-Based Compensation During the three month periods ended March 31, 2016 and 2015, the Company granted none and 13,000 stock options, respectively, to employees and contractors. The Company recognized $42,000 and $68,000, respectively, in stock-based compensation expense for the three month periods ended March 31, 2016 and 2015. This expense is allocated to the appropriate employee department. During the three month period ended March 31, 2016, 136,000 options were exercised under the 2005 Plan compared to 150,000 in the previous year comparative quarter. Valuation Assumptions The fair values of employee and director option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: For Three Months Ended March 31, 2016 For Three Months Ended March 31, 2015 Weighted average grant date fair value — $ Weighted average assumptions used: Expected dividend yield — % Risk-free interest rate — % Expected volatility — % Expected life (in years) — Forfeiture rate — % Expected volatility is based on historical volatility and in part on implied volatility. The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior. The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. Options granted to non-employees are valued using the fair market value on each measurement date of the option. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Net Loss Per Share | |
Net Loss Per Share | 7. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. Our common stock equivalents include all common stock issuable upon conversion of preferred stock and the exercise of outstanding options and warrants. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three month periods ending March 31, 2016 and 2015 are 3,572,933 and 3,922,202, respectively. |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2016 | |
Concentrations | |
Concentrations | 8. Concentrations Our operations are concentrated in one area—security software/entity identification. Sales to the U.S. Government through direct and indirect channels totaled 65.2% of total revenues for the first quarter of 2016 compared to 64.0% of total revenues for the first quarter of 2015. During the first quarter of 2016, approximately 65.2% of total revenues were attributable to four government customers compared to approximately 48.0% of total revenues attributable to three government customers in the first quarter of 2015. There was one individual commercial customer in the first quarter of 2016 attributable for 25.6% of total revenue compared to 23.5% of total revenue to two individual commercial customers for the same period in 2015. Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 9. Commitments and Contingencies We are subject from time to time to various legal proceedings and claims that arise during the ordinary course of our business. We do not believe that the outcome of those “routine” legal matters should have a material adverse affect on our consolidated financial position, operating results or cash flows; however, we can provide no assurances that legal claims that may arise in the future will not have such a material impact on the Company. |
Dividends Payable
Dividends Payable | 3 Months Ended |
Mar. 31, 2016 | |
Dividends Payable | |
Dividends Payable | 10. Dividends Payable During the quarter ended March 31, 2016, we accrued $12,000 in dividends payable to the holders of our 5% Preferred Stock, $15,000 in dividends payable to the holders of our Series 2 5% Preferred Stock and $8,000 in dividends payable to the holders of our Series 3 5% Preferred Stock. As of March 31, 2016, we have $195,000 in accrued and unpaid dividends included in current liabilities. Delaware law provides that we may only pay dividends out of our capital surplus or, if no surplus is available, out of our net profits for the fiscal year the dividend is declared and/or the preceding fiscal year. We currently have dividend payments that are past due because we do not currently have a capital surplus or fiscal year net profits. We cannot assure you that our net assets will exceed our stated capital or that we will have sufficient net profits in order to pay these dividends in the future. These dividends continue to accrue on all our outstanding shares of preferred stock, regardless of whether we are legally able to pay them. If we continue to be unable to pay dividends on our preferred stock, we will be required to accrue an additional late fee penalty of 18% per annum on the unpaid dividends for the Series 2 Preferred Stock and Series 3 Preferred Stock. Our CEO, CFO and one outside board member who are invested in Series 2 and Series 3 Preferred Stock have waived any possible late fee penalties. In addition to this late penalty, the holders of our Series 2 Preferred Stock and Series 3 Preferred Stock could elect to present us with written notice of our failure to pay dividends as scheduled, in which case we would have 45 days to cure such a breach. In the event that we failed to cure the breach, the holders of these shares of preferred stock would then have the right to require us to redeem their shares of preferred stock for a cash amount calculated in accordance with their respective certificates of designation. If we were required to redeem all shares of Series 2 Preferred Stock and Series 3 Preferred Stock as of February 29, 2016 the aggregate redemption price we would owe would be $2.0 million. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | |
Schedule of inventories | Inventories (In thousands) March 31, 2016 December 31, 2015 Inventories consist of: Finished products Net inventory $ |
Accounting for Stock-Based Co17
Accounting for Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting for Stock-Based Compensation | |
Schedule of assumptions used to estimate the fair values of employee and director options awards at the date of grant using a Black-Scholes option-pricing model | For Three Months Ended March 31, 2016 For Three Months Ended March 31, 2015 Weighted average grant date fair value — $ Weighted average assumptions used: Expected dividend yield — % Risk-free interest rate — % Expected volatility — % Expected life (in years) — Forfeiture rate — % |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2016item | |
Basis of Presentation | |
Number of instruments held for trading purposes | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Finished products | $ 45 | $ 45 |
Net inventory | $ 45 | $ 45 |
Loan Payable to Officer (Detail
Loan Payable to Officer (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Feb. 04, 2016 | Dec. 31, 2015 | Feb. 05, 2015 | |
Borrowing from Officer | ||||
Loan payable to officer | $ 2,055,000 | $ 1,530,000 | ||
G. Ward Paxton, chief executive officer | Promissory note | ||||
Borrowing from Officer | ||||
Maximum borrowing capacity | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 | |
Finance charge basis | prime rate | |||
Percentage points added in interest rate | 1.00% | |||
Interest rate (as a percent) | 5.00% | |||
Loan payable to officer | $ 2,055,000 | |||
Accrued interest, related party | $ 99,000 |
Line of Credit (Details)
Line of Credit (Details) - SVB - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Jun. 23, 2015 | Jun. 30, 2008 | Mar. 29, 2006 | |
2006 Credit Line | ||||
Line of Credit | ||||
Maximum borrowing capacity | $ 1,000,000 | |||
2008 Credit Line | ||||
Line of Credit | ||||
Maximum borrowing capacity | $ 2,500,000 | |||
Current Line of Credit | ||||
Line of Credit | ||||
Maximum borrowing capacity | $ 625,000 | |||
Borrowing Base | $ 78,000 | |||
Period of annual rate for calculating daily rate of finance charge on each advance | 360 days | |||
Finance charge basis | prime rate | |||
Percentage points added in daily rate of finance charge | 2.00% | |||
Minimum interest rate (as a percent) | 7.00% | |||
Monthly collateral handling fee (as a percent) | 0.50% | |||
Borrowings outstanding | $ 364,000 | |||
Current Line of Credit | Maximum | ||||
Line of Credit | ||||
Contingent advances as a percentage of each Eligible Account | 80.00% |
Accounting for Stock-Based Co22
Accounting for Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting for Stock-Based Compensation | ||
Stock options granted (in shares) | 0 | 13,000 |
Stock-based compensation expense | $ 42,000 | $ 68,000 |
Options exercised (in shares) | 136,000 | 150,000 |
Valuation Assumptions | ||
Weighted average grant date fair value (in dollars per share) | $ 2.44 | |
Expected dividend yield (as a percent) | 0.00% | |
Risk-free interest rate (as a percent) | 1.50% | |
Expected volatility (as a percent) | 188.00% | |
Expected life (in years) | 5 years | |
Forfeiture rate (as a percent) | 4.00% |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Loss Per Share | ||
Aggregate number of common stock equivalents excluded from the diluted loss per share calculation (in shares) | 3,572,933 | 3,922,202 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | |
Mar. 31, 2016customeritem | Mar. 31, 2015customer | |
Concentrations | ||
Number of areas in which operations are concentrated | item | 1 | |
Total revenues | Customer | U.S. Government | ||
Concentrations | ||
Percentage of revenue | 65.20% | 64.00% |
Total revenues | Customer | Commercial customers | ||
Concentrations | ||
Percentage of revenue | 25.60% | 23.50% |
Number of customers | 1 | 2 |
Total revenues | Customer | Government customers | ||
Concentrations | ||
Percentage of revenue | 65.20% | 48.00% |
Number of customers | 4 | 3 |
Dividends Payable (Details)
Dividends Payable (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Dividends Payable | ||
Preferred stock dividends accrued during the period | $ 35,000 | $ 34,000 |
Accrued and unpaid dividends | 195,000 | $ 160,000 |
Series 1 | ||
Dividends Payable | ||
Preferred stock dividends accrued during the period | $ 12,000 | |
Dividend rate (as a percent) | 5.00% | |
Series 2 | ||
Dividends Payable | ||
Preferred stock dividends accrued during the period | $ 15,000 | |
Dividend rate (as a percent) | 5.00% | |
Series 3 | ||
Dividends Payable | ||
Preferred stock dividends accrued during the period | $ 8,000 | |
Dividend rate (as a percent) | 5.00% | |
Series 2 preferred stock and Series 3 preferred stock | ||
Dividends Payable | ||
Percentage of additional late fee penalty payable on unpaid dividends | 18.00% | |
Number of outside board members invested in preferred stock | item | 1 | |
Period within which entity must cure breach | 45 days | |
Aggregate redemption price | $ 2,000,000 |