Secure Point Technologies Inc (fka IMSCQ)

[b9molecule]

Ted, here are some key places where the most recent 10-Q mentions Series J:

under ASSETS:
Series J Convertible Preferred Stock; $0.10 par value; 6,000 shares authorized
no shares issued and outstanding

under Long-Term Debt and Credit Arrangements:
On February 28, 2013...DMRJ acquired the option to convert the amended and restated senior secured convertible promissory note dated March 12, 2012 (the “March 2009 Note”) into shares of Series J Convertible Preferred Stock in lieu of shares of Common Stock

As amended, the March 2009 Note is convertible in whole or in part, at DMRJ’s option, into shares of Series J Convertible Preferred Stock at an initial conversion rate of $1,000 per share...

Upon Any Such Liquidation Event: (a sale of the company, a merger, etc.)
Each share of Series J Preferred Stock will be convertible, at the option of the holder, into that number of shares of Common Stock as is determined by dividing the Series J Original Issue Price by the Series J Conversion Price (as defined below) in effect at the time of conversion. The “Series J Conversion Price” will initially be equal to $.08, and is subject to adjustment in the event that (a) the Company issues additional shares of Common Stock as a dividend or other distribution on outstanding shares of Common Stock, (b) there is a split or subdivision of outstanding shares of Common Stock, or (c) there is a combination or reverse stock split of outstanding shares of Common Stock into a smaller number of shares of Common Stock. Assuming no adjustments to the Series J Original Issue Price or the Series J Conversion Price, the March 2009 Note will be convertible indirectly, at DMRJ’s option, into shares of Common Stock at an effective conversion price of $.08 per share. Prior to the execution of the amendment, the March 2009 Note was convertible directly into shares of Common Stock at a conversion price of $.08 per share. Accordingly, we do not believe this change to be material.

But, the most important line in the 10-Q, I think, is this:

As of March 31, 2013, there were no shares of Series H Preferred Stock, Series I Preferred Stock or Series J Preferred Stock outstanding.

I am not an MBA so TIFWIW :)

best,
b9


PS: correct me if I am wrong but I think those Preferreds exist as "poison pills" to deter possible buy-outs/hostile takeovers. They appear (to me) to only come into play as part of a Liquidation Event.