Quarterly report pursuant to Section 13 or 15(d)

SHAREHOLDERS??? EQUITY

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SHAREHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

10. SHAREHOLDERS’ EQUITY

 

The Company had the right to sell up to $35 million of its Series B Preferred Stock using its preferred stock at-the-market facility (“ATM”). This right terminated when the Company suspended the Preferred Stock dividends in December 2023. The Company also had the right to sell up to $50 million of its common stock using a common stock ATM facility. This right also terminated when the Company suspended the Preferred Stock dividends. The underwriters of the ATMs receive 3% of the gross proceeds actually received.

 

On December 11, 2023, the Board of Directors suspended the monthly cash dividends for Series A Preferred Stock and Series B Preferred Stock beginning with the payment scheduled for December 15, 2023 together with the remaining dividends that were declared. The suspension of these dividends will defer approximately $1.3 million in cash dividend payments each month. During this suspension, dividends will continue to accumulate in arrears on the Series A and Series B Preferred Stock. The Board of Directors will regularly review and consider when the suspension should be lifted.

 

During the six months ended June 30, 2024, no dividends were declared by the Board of Directors. At June 30, 2024, the Company owed approximately $5.4 million for dividends that had previously been declared through February 2024 (but whose payment has been suspended), and also had total undeclared dividends of approximately $5.2 million, which represents the accumulated (but undeclared) dividends due to preferred shareholders of record on June 30, 2024. Dividends in arrears that have not been declared by the Board of Directors are not recorded in the condensed consolidated balance sheets but are reflected in the net loss attributable to common shareholders.