XML 31 R15.htm IDEA: XBRL DOCUMENT v3.23.1
Redeemable Senior Preferred Stock and Warrants
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Redeemable Senior Preferred Stock and Warrants Redeemable Senior Preferred Stock and Warrants
The following table provides a reconciliation of the beginning and ending carrying amounts of the redeemable senior preferred stock for the three months ended March 31, 2023:
(in thousands)SharesAmount
December 31, 2022225 $235,579 
Payment of cash portion of dividend and ticking fee outstanding at December 31, 2022— (5,341)
Unpaid dividend on redeemable senior preferred stock— 4,383 
Accretion of discounts and issuance cost— 818 
March 31, 2023225 $235,439 
The dividend rate for the redeemable senior preferred stock is equal to the three-month LIBOR rate (minimum of 1.00%) plus an applicable margin of 12.00% (capped at 22.50%) per year, with a minimum quarterly cash dividend payment of 5.00% plus the three-month LIBOR rate per year. The dividend rate is subject to future increases if the Company doesn't comply with the minimum cash payment requirements outlined in the agreement, which includes required payments of dividends, required payments related to redemption or required prepayments. The dividend rate may also increase if the Company fails to obtain the required stockholder approval for a forced sale transaction triggered by investors or if an event of default as outlined in the agreement occurs.
The dividend rate as of March 31, 2023 and December 31, 2022, was 16.7% and 15.7% respectively.
The following table provides a summary of the dividends for the period presented:
Three Months Ended March 31,
(in thousands)20232022
Dividends paid in cash$6,094 $3,505 
Accumulated dividends accrued as part of the carrying value of redeemable senior preferred stock4,383 4,090 
Dividends declared$10,477 $7,595 
On April 27, 2021, the Company issued warrants to purchase up to 1,803,841 shares of the Common Stock, at an exercise price of $0.001. As of March 31, 2023, none of the warrants have been exercised. The warrants are considered to be equity contracts indexed in the Company's own shares and therefore were recorded at their inception date relative fair value and are included in additional paid-in capital on the Company's Unaudited Consolidated Balance Sheets.