Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Sep. 30, 2012
Mandatorily Redeemable Preferred Stock and Stockholders' Equity [Abstract]  
Stockholders' Equity

8. Stockholders’ Equity

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2012:

 

                                                         
    Preferred
Stock		     Senior Common
Stock		     Common
Stock		     Capital in
Excess of
Par Value		     Notes
Receivable
from Employees		     Distributions in
Excess of
Accumulated
Earnings		     Total
Stockholders’
Equity		  

Balance at December 31, 2011

   $ 2     $ —       $ 11     $ 211,553     $ (422 )    $ (75,830 )    $ 135,314  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Issuance of senior common stock and common stock, net

     —         —         —         989       —         —         989  
               

Repayment of principal on employee notes receivable

     —         —         —         —         12       —         12  
               

Distributions declared to common, senior common and preferred stockholders

     —         —         —         —         —         (15,455 )      (15,455 ) 
               

Net income

     —         —         —         —         —         3,147       3,147  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at September 30, 2012

   $ 2     $ —       $ 11     $ 212,542     $ (410 )    $ (88,138 )    $ 124,007  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions

Our Board of Directors declared the following distributions per share for the three and nine months ended September 30, 2012 and 2011:

 

                                 
    For the three months ended
September 30,		     For the nine months ended
September 30,		  
    2012     2011     2012     2011  

Common Stock

   $ 0.375     $ 0.375     $ 1.125     $ 1.125  

Senior Common Stock

   $ 0.2625     $ 0.2625     $ 0.7875     $ 0.7875  

Series A Preferred Stock

   $ 0.4843749     $ 0.4843749     $ 1.4531247     $ 1.4531247  

Series B Preferred Stock

   $ 0.46875     $ 0.46875     $ 1.4063     $ 1.4063  

Series C Preferred Stock

   $ 0.4453125       N/A     $ 1.1875       N/A  

Ongoing Activity

We have an open market sale agreement, or the Open Market Sale Agreement, with Jefferies & Company, Inc., or Jefferies, under which we may, from time to time, offer to sell shares of our common stock with an aggregate sales price of up to $25.0 million on the open market through Jefferies, as agent, or to Jefferies, as principal. As of September 30, 2012, we had sold 192,365 shares with net proceeds of $3.4 million, and have a remaining capacity to sell up to $21.6 million of common stock under the Open Market Sale Agreement with Jefferies. There were no sales under the Open Market Sale Agreement during the nine months ended September 30, 2012.

In March 2011, we commenced an offering of an aggregate of 3,500,000 shares of our senior common stock, par value $0.001 per share, at a price to the public of $15.00 per share, of which 3,000,000 shares are intended to be offered pursuant to the primary offering and 500,000 shares are intended to be offered pursuant to our senior common distribution reinvestment plan (the “DRIP”). We, however, reserve the right to reallocate the number of shares being offered between the primary offering and the DRIP. To date we have sold 76,875 shares of senior common stock in this ongoing offering and issued 544 shares of senior common stock under the DRIP program.

Notes to Employees

The following table is a summary of all outstanding notes issued to employees of the Adviser for the exercise of stock options:

 

                                                     

Date Issued

   Number of
Options
Exercised		     Strike Price
of Options
Exercised		     Amount of
Promissory Note
Issued to Employees		     Outstanding Balance
of Employee Loans at
September 30, 2012		     Outstanding Balance
of Employee Loans at
December 31, 2011		    

Maturity Date
of Note

   Interest Rate
on Note		  

Sep 2004

     25     $  15.00     $  375     $  —       $ 11     Sep 2013     5.00 % 

Apr 2006

     12       16.10       193       3       4     Apr 2015     7.77 % 

May 2006

     2       16.10       32       32       32     May 2016     7.87 % 

Nov 2006

     25       15.00       375       375       375     Nov 2015     8.15 % 
   

 

 

            

 

 

    

 

 

    

 

 

              
      64             $ 975     $ 410     $ 422              
   

 

 

            

 

 

    

 

 

    

 

 

              

In accordance with ASC 505-10-45-2, “Equity,” receivables from employees for the issuance of capital stock to employees prior to the receipt of cash payment should be reflected in the balance sheet as a reduction to stockholders’ equity. Therefore, these notes were recorded as full recourse loans to employees and are included in the equity section of the accompanying condensed consolidated balance sheets. As of September 30, 2012, each loan maintained its full recourse status.