Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Mar. 31, 2014
Equity [Abstract]  
Stockholders' Equity

9. Stockholders’ Equity

The following table summarizes the changes in our stockholders’ equity for the three months ended March 31, 2014 (dollars 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, 2013

    $ 2       $ —         $ 16       $ 298,751       $ (375 )    $ (115,248 )    $ 183,146   

Issuance of senior common stock and common stock, net

      —           —           —           7,243         —          —          7,243   

Distributions declared to common, senior common and preferred stockholders

      —           —           —           —           —          (7,025 )      (7,025 ) 

Net loss

      —           —           —           —           —          (13,514 )      (13,514 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Balance at March 31, 2014

    $ 2       $ —         $ 16       $ 305,994       $ (375 )    $ (135,787 )    $ 169,850   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions

Our Board of Directors declared the following distributions per share for the three months ended March 31, 2014 and 2013:

 

     For the three months ended March 31,  
     2014      2013  

Common Stock

    $ 0.38       $ 0.38   

Senior Common Stock

      0.26         0.26   

Series A Preferred Stock

      0.4843749         0.4843749   

Series B Preferred Stock

      0.4688         0.4688   

Series C Preferred Stock

      0.4453         0.4453   

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, 2014, we raised approximately $7.2 million in net proceeds under the ATM Program. As of March 31, 2014, under the existing program, we have sold a total of 1.2 million shares with aggregate gross proceeds of $21.4 million, and have a remaining capacity to sell up to $3.6 million of common stock under the ATM Program 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, 2014, we had sold 333,604 shares of senior common stock in this ongoing offering, for gross proceeds of $5.0 million, and issued an additional 12,047 shares of senior common stock under the DRIP program.

Note to Employee

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

 

Date Issued

    Outstanding Balance
of Employee Loan
at March 31, 2014		      Outstanding Balance
of Employee Loan at
December 31, 2013		      Maturity Date
of Note		      Interest Rate
on Note		  

Nov 2006

    $ 375       $ 375         Nov 2015         8.15 % 

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, 2014, this loan maintained its full recourse status.