Note 8 Stockholders’ Equity

Dividends

On June 26, 2017, the board of directors approved a resolution authorizing a $0.02 per share (and per warrant) dividend payment on July 12, 2017, for common and preferred series C shareholders and warrant holders of record as of July 5, 2017 and for three subsequent quarterly record dates thereafter. Quarterly dividends of $261 thousand were paid out to share and warrant holders on July 12, 2017. Optex Systems Holdings recorded an additional $261 thousand in dividends payable as of October 1, 2017 for declared dividends paid on October 19, 2017. During the nine months ending July 1, 2018, Optex Systems Holdings recorded $522 in declared dividends for dividends paid to share and warrant holders of record as of January 12, 2018 and April 12, 2018. As of period ending July 1, 2018, there were no outstanding dividends payable. There are no additional dividend payments declared subsequent to the April 12, 2018 record date or anticipated dividend declarations for the remainder of the fiscal year.

Common stock

As of October 1, 2017, the outstanding common shares were 8,190,101. During the nine months ending July 1, 2018, Optex Systems Holdings issued 500,000 common shares due to conversions of Series C preferred stock and 55,902 common shares related to the vesting of restricted stock units. There were no other issuances of common or preferred stock during the nine months ended July 1, 2018. On May 16, 2018, we announced that our Board of Directors approved a purchase of 200,000 shares of its common stock in a private transaction. The transaction was priced at $1.00 per share for a total transaction amount of $200,000. Upon repurchase, the shares were returned to treasury. As of July 1, 2018, the outstanding common shares were 8,546,003. Also see Note 9, “Subsequent Events”.

Series C Preferred Stock

As of October 1, 2017 there were 174 preferred Series C shares outstanding. During the nine months ending July 1, 2018, there were no new issues of preferred Series C shares, and conversions of 120 preferred Series C shares, or $0.6 million, into 500,000 common shares. As of July 1, 2018 there were 54 preferred Series C shares outstanding, convertible into 225,000 common shares. During the nine months ending July 2, 2017 there were no new issues of preferred Series C shares, and conversions of 42 preferred Series C shares, or $0.2 million, into 175,000 common shares.