4.       Mandatorily Redeemable Preferred Stock

On January 10, 2025, the Company completed the final redemption of the remaining 60,000 shares of its 8.0% Series A cumulative redeemable preferred stock (the “Mandatorily Redeemable Preferred Stock”).  The redemption price was $25.00 per share, plus $0.44 per share of accrued dividends.  As a result of the final redemption, the Company recorded a loss on redemption of Mandatorily Redeemable Preferred Stock of $9,375 for the  three months ended March 31, 2025, which represented the unamortized discount and deferred financing costs associated with the redeemed mandatorily redeemable preferred shares.

The Company classified the Mandatorily Redeemable Preferred Stock as a liability in accordance with ASC Topic No. 480, “Distinguishing Liabilities from Equity,” which states that mandatorily redeemable financial instruments should be classified as liabilities and therefore the related dividend payments are treated as a component of interest expense in the accompanying condensed consolidated statements of operations (see Note 5, below, for a discussion of interest expense associated with the mandatorily redeemable preferred stock).

For all periods during which the Mandatorily Redeemable Preferred Stock was outstanding, the Company paid a cash dividend on the stock equal to 8% per annum, paid quarterly.