XML 31 R20.htm IDEA: XBRL DOCUMENT v3.21.2
Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

 

Note 14 — Subsequent Events    

On October 8, 2021, the Company voluntarily converted all of its 45,000 outstanding shares of Series A Convertible Preferred Stock into 11,688,310 shares of its common stock.  The shares of Series A Convertible Preferred Stock were originally issued on April 7, 2020.  The Certificate of Designation of the Series A Convertible Preferred Stock authorized the Company to voluntarily convert the Series A Convertible Preferred Stock into common stock provided the Company's common stock traded at prices greater than $7.70 for a certain period of time prior to conversion.

As a result of the conversion, the $90 million liquidation preference value reflected as mezzanine equity in the consolidated balance sheet as of September 30, 2021 will be reclassified to stockholders’ equity during the quarter ending December 31, 2021.

The Company completed the securitization of $204.5 million of investor real estate loans on October 22, 2021 which will be accounted for as secured borrowings during the quarter ending December 31, 2021.

The Company has evaluated events that have occurred subsequent to September 30, 2021 through the issuance of the accompanying consolidated financial statements and has concluded there are no other subsequent events that would require recognition or disclosure in the accompanying consolidated financial statements.