Capital Structure: Class A Redeemable Preferred Stock |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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).
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