Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Mar. 31, 2013
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 three months ended March 31, 2013 (in thousands):

 

                                                         
    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, 2012

   $ 2     $ —       $ 11     $ 215,470     $ (410 )    $ (92,708 )    $ 122,365  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
               

Issuance of senior common stock and common stock, net

     —         —         —         6,108       —         —         6,108  
               

Repayment of principal on employee notes receivable

     —         —         —         —         35       —         35  
               

Distributions declared to common, senior common and preferred stockholders

     —         —         —         —         —         (5,293 )      (5,293 ) 
               

Net income

     —         —         —         —         —         433       433  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at March 31, 2013

   $ 2     $ —       $ 11     $ 221,578     $ (375 )    $ (97,568 )    $ 123,648  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions

Our Board of Directors declared the following distributions per share for the three months ended March 31, 2013 and 2012:

 

                 
    For the three months ended March 31,  
    2013     2012  
     

Common Stock

   $ 0.375     $ 0.375  

Senior Common Stock

     0.2625       0.2625  

Series A Preferred Stock

     0.4843749       0.4843749  

Series B Preferred Stock

     0.46875       0.46875  

Series C Preferred Stock (1)

    0.4453125       0.296875  

 

(1) 

The Series C Preferred Stock was issued on January 31, 2012.

 

Ongoing Activity

We have an open market sale agreement, or the ATM Program, with Jefferies LLC., 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. During the three months ended March 31, 2013, we raised approximately $5.6 million in gross proceeds under our ATM program. As of March 31, 2013, we had sold a total of 629,794 shares with aggregate gross proceeds of $11.7 million, and have a remaining capacity to sell up to $13.3 million of common stock under the Open Market Sale Agreement with Jefferies.

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, or the DRIP. We, however, reserve the right to reallocate the number of shares being offered between the primary offering and the DRIP. As of March 31, 2013, we have sold 157,662 shares of senior common stock in this ongoing offering, for gross proceeds of $2.4 million, and issued an additional 2,697 shares of senior common stock under the DRIP program.

Notes to Employees

The following table is a summary of the outstanding note issued to an employee of the Adviser for the exercise of stock options (dollars in thousands):

 

                             

Date Issued

   Outstanding Balance
of Employee Loans at
March 31, 2013		     Outstanding Balance
of Employee Loans at
December 31, 2012		     Maturity Date
of Note		   Interest Rate
on Note		  
         

Nov 2006

   $ 375     $ 410     Nov 2015     8.15 % 
   

 

 

    

 

 

              
         
    $ 375     $ 410              
   

 

 

    

 

 

              

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, this note was recorded as a full recourse loan to the employee and is included in the equity section of the accompanying condensed consolidated balance sheets. As of March 31, 2013, this loan maintained its full recourse status.