Does this excerpt from The Boston Globe reveal any potential securities law problems?

Berkshire Ice Cream’s down-home investment strategy is paying off for more than 100 people who last year put up $800 to $1,000 to “own” a company cow.

Last month, the company sent out about $32,000 to investors who bought a total of 110 cows a year ago, with the expectation of a 20 percent annual return on their money. [I]nitially, there were 63 investors who agreed to finance the purchase of a cow—which the company then cares for—in return for a piece of the company’s profits.