Note 5 - Preferred Stock	6 Months Ended
Dec. 31, 2014
Notes
Note 5 - Preferred Stock	NOTE 5 – PREFERRED STOCK Series A Preferred Stock The Series A Preferred Stock has equal dividend rights to the common shares, is not convertible into common shares, has no cumulative dividend requirements and has liquidation preferences equivalent to the common shares. 3,400,000 shares of the Series A Preferred Stock are entitled to the voting rights of 10 common shares, and 2,000,000 shares of the Series A Preferred Stock are entitled to the voting rights of 100 common shares. At December 31, 2014, and June 30, 2014, there were 5,400,000 Series A Preferred Stock issued and outstanding, respectively. Series B Preferred Stock The Series B Preferred Stock has equal dividend rights to the common shares, has no cumulative dividend requirements, has liquidation preferences equivalent to the common shares and each preferred share is entitled to the voting rights of 10 common shares. Each share is convertible into options to purchase two shares of common stock at $3.00 per share, exercisable immediately and the options expire ten years from the date the preferred stock is issued. At December 31, 2014, and June 30, 2014, there were 300,000, series B Preferred shares issued and outstanding. The Company’s policy for recording interest and penalties associated with taxes is to recognize it as a component of income tax

Note 5 - Preferred Stock

6 Months Ended

Dec. 31, 2014

NOTE 5 – PREFERRED STOCK

Series A Preferred Stock

The Series A Preferred Stock has equal dividend rights to the common shares, is not convertible into common shares, has no cumulative dividend requirements and has liquidation preferences equivalent to the common shares. 3,400,000 shares of the Series A Preferred Stock are entitled to the voting rights of 10 common shares, and 2,000,000 shares of the Series A Preferred Stock are entitled to the voting rights of 100 common shares. At December 31, 2014, and June 30, 2014, there were 5,400,000 Series A Preferred Stock issued and outstanding, respectively.

Series B Preferred Stock

The Series B Preferred Stock has equal dividend rights to the common shares, has no cumulative dividend requirements, has liquidation preferences equivalent to the common shares and each preferred share is entitled to the voting rights of 10 common shares. Each share is convertible into options to purchase two shares of common stock at $3.00 per share, exercisable immediately and the options expire ten years from the date the preferred stock is issued. At December 31, 2014, and June 30, 2014, there were 300,000, series B Preferred shares issued and outstanding.

The Company’s policy for recording interest and penalties associated with taxes is to recognize it as a component of income tax

INTERNATIONAL AUTOMATED SYSTEMS INC 10-Q