v3.26.1
Capital Structure: Class A Redeemable Preferred Stock
12 Months Ended
Dec. 31, 2025
Capital Structure: Class A Redeemable Preferred Stock  
Capital Structure: Class A Redeemable Preferred Stock

Note 15 - Capital Structure: Class A Redeemable Preferred Stock

On July 18, 2025, following Board authorization on June 20, 2025, filing of the Certificate of Designation on June 24, 2025, and Nasdaq Corporate Data Operations approval on July 11, 2025 (the record date), the Company issued 2,069,065 shares of its Class A Redeemable Preferred Stock as a one-time special stock dividend (one Class A share for each common share and common stock equivalent outstanding as of the record date). 2,069,066 shares are authorized and 2,069,065 were issued and outstanding as of December 31, 2025.

Pursuant to the Certificate of Designation, the Class A shares are mandatorily redeemable upon an Asset Sale for 100% of the net proceeds as defined therein. The closing of the Asset Sale on October 24, 2025 (see Note 2) triggered this mandatory redemption obligation. As of December 31, 2025, the redemption had not yet been completed.

The Company currently estimates the final redemption amount will be approximately $50 after permitted expenses and net asset recoveries. Accordingly, the Class A Redeemable Preferred Stock has been reclassified from temporary equity to a current liability on the consolidated balance sheet as of December 31, 2025.

The Class A Redeemable Preferred Stock is a participating security only in the liquidation or sale proceeds and does not receive dividends other than the redemption amount. Therefore, it is excluded from the computation of diluted earnings per share as anti-dilutive for the periods presented.

The actual cash redemption payment is expected to occur after December 31, 2025 and is treated as a non-recognized subsequent event (see Note 17 – Subsequent Events).

Class A Redeemable Preferred 

 


 

(dollars in thousands, shares in whole amounts)

 

Amount Shares

 

Beginning balance, July 1, 2025

 

$

 

 

$

 

Issuance via special stock dividend, par value (July 18, 2025)


2


2,069,065

Record temporary equity at estimated redemption value

 

 

756

 

 

 

 

Reclassification to current liability upon Asset Sale closing (October 24, 2025)

(758)



Balance, December 31, 2025

 

$

 

 

$

2,069,065

 










Class A Redeemable Preferred Stock redemption payable (current liability, discontinued operations)

50


2,069,065