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Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

9. STOCKHOLDERS’ EQUITY

The following table details the components of Stockholders’ Equity for the nine months ended September 30, 2022 and 2021:

 

 

 

For the Nine Months Ended September 30, 2022

 

($ in thousands)

 

Common
Stock

 

 

Capital in
Excess
of Par Value

 

 

Total
Distributable
(loss) earnings

 

 

Total
Stockholders'
Equity

 

Balance, January 1, 2022

 

$

97

 

 

$

733,095

 

 

$

(453,070

)

 

$

280,122

 

Net investment income

 

 

-

 

 

 

-

 

 

 

7,908

 

 

 

7,908

 

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

2,143

 

 

 

2,143

 

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(5,553

)

 

 

(5,553

)

Tax (provision) benefit on realized and unrealized gains (losses) on investments

 

 

-

 

 

 

-

 

 

 

(440

)

 

 

(440

)

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(6,111

)

 

 

(6,111

)

Reinvested Dividends

 

 

-

 

 

 

338

 

 

 

-

 

 

 

338

 

Stock-repurchase

 

 

-

 

 

 

(545

)

 

 

-

 

 

 

(545

)

Private placement and other

 

 

-

 

 

 

439

 

 

 

-

 

 

 

439

 

Balance, March 31, 2022

 

$

97

 

 

$

733,327

 

 

$

(455,123

)

 

$

278,301

 

Net investment income

 

$

-

 

 

$

-

 

 

$

5,522

 

 

$

5,522

 

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

113

 

 

 

113

 

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(13,991

)

 

 

(13,991

)

Tax (provision) benefit on realized and unrealized gains (losses) on investments

 

 

-

 

 

 

-

 

 

 

(77

)

 

 

(77

)

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(6,064

)

 

 

(6,064

)

Reinvested Dividends

 

 

-

 

 

 

346

 

 

 

-

 

 

 

346

 

Stock-repurchase

 

 

-

 

 

 

(2,459

)

 

 

-

 

 

 

(2,459

)

Private placement

 

 

-

 

 

 

(25

)

 

 

-

 

 

 

(25

)

Balance, June 30, 2022

 

$

97

 

 

$

731,189

 

 

$

(469,620

)

 

$

261,666

 

Net investment income

 

$

-

 

 

$

-

 

 

$

8,392

 

 

$

8,392

 

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

(2,968

)

 

 

(2,968

)

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(9,087

)

 

 

(9,087

)

Tax (provision) benefit on realized and unrealized gains (losses) on investments

 

 

-

 

 

 

-

 

 

 

(542

)

 

 

(542

)

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(6,048

)

 

 

(6,048

)

Reinvested Dividends

 

 

-

 

 

 

204

 

 

 

-

 

 

 

204

 

Stock-repurchase

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Private placement

 

 

-

 

 

 

(35

)

 

 

-

 

 

 

(35

)

Balance, September 30, 2022

 

$

97

 

 

$

731,358

 

 

$

(479,873

)

 

$

251,582

 

 

 

 

For the Nine Months Ended September 30, 2021

 

($ in thousands)

 

Common
Stock(1)

 

 

Capital in
Excess
of Par Value(1)

 

 

Total
Distributable
(loss) earnings

 

 

Total
Stockholders'
Equity

 

Balance, January 1, 2021

 

$

75

 

 

$

639,136

 

 

$

(422,947

)

 

$

216,264

 

Net investment income

 

 

-

 

 

 

-

 

 

 

8,213

 

 

 

8,213

 

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(6,921

)

 

 

(6,921

)

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

6,745

 

 

 

6,745

 

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(4,510

)

 

 

(4,510

)

Reinvested Dividends

 

 

-

 

 

 

64

 

 

 

-

 

 

 

64

 

Balance at March 31, 2021

 

$

75

 

 

$

639,200

 

 

$

(419,420

)

 

$

219,855

 

Net investment income

 

$

-

 

 

$

-

 

 

$

11,710

 

 

$

11,710

 

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(2,356

)

 

 

(2,356

)

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

1,490

 

 

 

1,490

 

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(4,594

)

 

 

(4,594

)

Reinvested Dividends

 

 

-

 

 

 

165

 

 

 

-

 

 

 

165

 

Stock-repurchase

 

 

-

 

 

 

(380

)

 

 

-

 

 

 

(380

)

Private placement

 

 

2

 

 

 

4,017

 

 

 

-

 

 

 

4,019

 

HCAP purchase (net of offering expenses)

 

 

15

 

 

 

38,680

 

 

 

-

 

 

 

38,695

 

Balance, June 30, 2021

 

$

92

 

 

$

681,682

 

 

$

(413,170

)

 

$

268,604

 

Net investment income

 

$

-

 

 

$

-

 

 

$

13,718

 

 

$

13,718

 

Net realized (losses) from investment transactions and extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(3,931

)

 

 

(3,931

)

Net change in unrealized appreciation on investments

 

 

-

 

 

 

-

 

 

 

(642

)

 

 

(642

)

Distributions to Stockholders

 

 

-

 

 

 

-

 

 

 

(5,469

)

 

 

(5,469

)

Reinvested Dividends

 

 

-

 

 

 

215

 

 

 

-

 

 

 

215

 

Stock-repurchase

 

 

-

 

 

 

(1,447

)

 

 

-

 

 

 

(1,447

)

Balance, September 30, 2021

 

$

92

 

 

$

680,450

 

 

$

(409,494

)

 

$

271,048

 
(1)
The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common stock and capital in excess of par value have been adjusted retroactively to reflect the split for all periods presented.

On March 11, 2021, the Board of Directors of the Company approved a $10 million stock repurchase program (the “Stock Repurchase Program”) for an approximately one-year period effective March 11, 2021 and terminating on March 31, 2022. Under this repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise subject to any agreement to which we are party including any restrictions in the indenture for our 4.875% Notes Due 2026. The timing and actual number of shares repurchased will depend on a variety of factors, including legal requirements, price, and economic and market conditions. This Stock Repurchase Program may be suspended or discontinued at any time. On March 8, 2022, the Board of Directors of the Company authorized a renewed stock repurchase program of up to $10 million (the “Renewed Stock Repurchase Program”) for an approximately one-year period, effective March 8, 2022 and terminating on March 31, 2023. The terms and conditions of the Renewed Stock Repurchase Program are substantially similar to the prior Stock Repurchase Program. The Renewed Stock Repurchase Program may be suspended or discontinued at any time. Subject to these restrictions, we will selectively pursue opportunities to repurchase shares which are accretive to net asset value per share.

During the three months ended September 30, 2022 and 2021, the Company issued 9,057 and 8,872 shares, respectively, of common stock under its dividend reinvestment plan. During the nine months ended September 30, 2022 and 2021, the Company issued 38,835 and 18,868 shares, respectively, of common stock under its dividend reinvestment plan. The total number of shares of the Company’s common stock outstanding as of September 30, 2022 and December 31, 2021 was 9,608,913 and 9,699,695, respectively. The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the share amounts above have been adjusted to reflect the split.

There were no share repurchases during the three months ended September 30, 2022 under the Renewed Stock Repurchase Program. During the nine months ended September 30, 2022, the Company repurchased 129,617 shares under the Renewed Stock Repurchase program at an aggregate cost of approximately $3.0 million. During the three and nine months ended September 30, 2021, the Company repurchased 59,659 and 75,377 shares, respectively under the Stock
Repurchase Program at an aggregate cost of approximately $1.4 million and $1.8 million.