STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 16 – STOCKHOLDERS’ EQUITY

Ownership and Warrants

As a result of the May 2012 and March 2013 private offerings of common stock to XL Investments Ltd, an indirectly wholly owned subsidiary of XL Group Ltd, XL Investments Ltd owns a significant minority investment in the Company. Pursuant to the terms of the May 2012 private offering, the Company agreed to issue to XL Investments Ltd warrants to purchase the Company’s common stock. The warrants were subsequently issued, effective as of September 29, 2012, and entitled XL Investments Ltd, commencing on July 25, 2013 (120 days following the closing of the Company’s IPO) to purchase an aggregate of 3,125,000 shares of the Company’s common stock at a per share exercise price equal to 105% of the $15.00 IPO price, or $15.75. Pursuant to the terms of the warrants and as a result of the deficiency dividend paid on December 27, 2016, the exercise price of the warrants was adjusted to $13.11 per share of common stock, and the number of shares of common stock purchasable upon exercise of the warrants increased to 3,753,492. XL Global, Inc., a subsidiary of XL Group Ltd, holds a minority stake in the Manager.

Common Stock

The Company has 450,000,000 authorized shares of common stock, par value $0.01 per share, with 17,539,258 and 14,656,394 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively.

On February 19, 2014, the Company issued 3,000,000 shares of common stock for $11.30 per share. Net proceeds to the Company were $31,927,377.

The Company granted the underwriters the right to purchase up to an additional 450,000 shares of common stock from the Company at the offering price of $11.30 per share within 30 days after the issuance date of the common stock. The underwriters exercised their right and purchased 300,000 shares of common stock at the offering price of $11.30 per share on March 7, 2014, resulting in additional net proceeds of $3,214,325.

On June 19, 2014, the Company issued 3,500,000 shares of common stock for $11.00 per share. Net proceeds to the Company were $38,442,925.

The Company granted the underwriters the right to purchase up to an additional 525,000 shares of common stock from the Company at the offering price of $11.00 per share within 30 days after the issuance date of the common stock. The underwriters exercised their right and purchased 525,000 shares of common stock at the offering price of $11.00 per share on July 14, 2014, resulting in additional net proceeds of $5,769,750.

On December 27, 2016 the Company paid a deficiency dividend in the amount of $19,384,684, representing $1.33 for each common share, payable in a combination of cash and stock with an aggregate payment of 20% of the deficiency dividend, or $3,878,042, in cash and 80% of the deficiency dividend, or $15,506,642, in stock. Pursuant to this deficiency dividend, the Company issued 2,936,864 shares of common stock for $5.28 per share.

Stock Repurchase Program

On December 15, 2015, the Company’s board of directors authorized a stock repurchase program (or the “Repurchase Program”), to repurchase up to $10 million of the Company’s outstanding common stock. Shares of the Company’s common stock may be purchased in the open market, including through block purchases, or through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b 18(b)(1) of the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any repurchases will be determined at the Company’s discretion and the program may be suspended, terminated or modified at any time for any reason. Among other factors, the Company intends to only consider repurchasing shares of the Company’s common stock when the purchase price is less than the Company’s estimate of the Company’s current net asset value per common share. Shares of common stock repurchased by the Company under the Repurchase Program, if any, will be canceled and, until reissued by the Company, will be deemed to be authorized but unissued shares of the Company’s common stock. Through December 31, 2016, the Company had repurchased 126,856 shares of common stock at a weighted average share price of $5.09. At December 31, 2016, $9.4 million of common stock remained authorized for future share repurchase under the Repurchase Program.

The following table presents a summary of the Company’s common stock repurchases under the Repurchase Program during the year ended December 31, 2016:

Month Purchased	Total Number of Shares Repurchased	Weighted Average Price Paid ‎per Share (1)		Total Cost of Shares Repurchased
January 2016	58,500.00	$	4.87	$	284,885

(1) Average price paid per share includes transaction costs

Preferred Stock

The Company has 50,000,000 authorized shares of preferred stock, par value $0.01 per share, with 1,610,000 shares of 8.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”), par value of $0.01 per share and liquidation preference of $25.00 per share, issued and outstanding as of both December 31, 2016 and December 31, 2015. The Series A Preferred Stock is entitled to receive a dividend rate of 8.75% per year on the $25 liquidation preference and is senior to the common stock with respect to distributions upon liquidation, dissolution or winding up. The Company declares quarterly and pays monthly dividends on the shares of the Series A Preferred Stock, in arrears, on the 27th day of each month to holders of record at the close of business on the 15th day of each month. No dividends may be paid on the Company’s common stock unless full cumulative dividends have been paid on the preferred stock. The Company has paid full cumulative dividends on its preferred stock on a monthly basis since it was first issued in December 2013.

On December 23, 2013, the Company closed an offering of 800,000 shares of Series A Preferred Stock. The net proceeds to the Company from this issuance were $18,060,897.

The Company granted the underwriters the right to purchase up to an additional 120,000 shares of Series A Preferred Stock from the Company at the offering price of $25.00 per share within 30 days after the issuance date of Series A Preferred Stock. The underwriters fully exercised their right and purchased 120,000 shares of Series A Preferred Stock at $25.00 per share on January 24, 2014, resulting in additional net proceeds of $2,778,201.

On May 27, 2014, the Company closed an offering of 690,000 additional shares of Series A Preferred Stock, including the concurrent exercise of the underwriters’ overallotment option. The net proceeds to the Company from this issuance were $16,325,373.

Distributions to stockholders

For the 2016 taxable year to date, the Company has declared dividends to common stockholders totaling $29,898,918, or $2.04 per share. The following table presents cash dividends declared by the Company on its common stock for the year ended December 31, 2016:

Declaration Date	Record Date	Payment Date	Dividend Amount		Cash Dividend Per Share
December 16, 2015	January 15, 2016	January 28, 2016	$	878,274	$	0.05998
December 16, 2015	February 16, 2016	February 26, 2016	$	875,874	$	0.05982
December 16, 2015	March 15, 2016	March 30, 2016	$	875,873	$	0.05982
March 16, 2016	April 15, 2016	April 28, 2016	$	875,874	$	0.05982
March 16, 2016	May 16, 2016	May 27, 2016	$	875,873	$	0.05982
March 16, 2016	June 15, 2016	June 29, 2016	$	875,874	$	0.05982
June 15, 2016	July 15, 2016	July 28, 2016	$	875,874	$	0.05982
June 15, 2016	August 15, 2016	August 30, 2016	$	876,144	$	0.05984
June 15, 2016	September 15, 2016	September 29, 2016	$	876,144	$	0.05984
September 16, 2016	October 17, 2016	October 28, 2016	$	876,144	$	0.05984
September 16, 2016	November 15, 2016	November 29, 2016	$	876,144	$	0.05984
September 16, 2016	December 15, 2016	December 29, 2016	$	876,144	$	0.05984
November 9, 2016	November 21, 2016	December 27, 2016	$	19,384,684	$	1.32394

The following table presents cash dividends declared by the Company on its Series A Preferred Stock for the year ended December 31, 2016:

Declaration Date	Record Date	Payment Date	Dividend Amount		Cash Dividend Per Share
December 16, 2015	January 15, 2016	January 27, 2016	$	293,503	$	0.18230
December 16, 2015	February 16, 2016	February 26, 2016	$	293,503	$	0.18230
December 16, 2015	March 15, 2016	March 28, 2016	$	293,503	$	0.18230
March 16, 2016	April 15, 2016	April 27, 2016	$	293,503	$	0.18230
March 16, 2016	May 16, 2016	May 27, 2016	$	293,503	$	0.18230
March 16, 2016	June 15, 2016	June 27, 2016	$	293,503	$	0.18230
June 15, 2016	July 15, 2016	July 27, 2016	$	293,503	$	0.18230
June 15, 2016	August 15, 2016	August 29, 2016	$	293,503	$	0.18230
June 15, 2016	September 15, 2016	September 27, 2016	$	293,503	$	0.18230
September 16, 2016	October 17, 2016	October 27, 2016	$	293,503	$	0.18230
September 16, 2016	November 15, 2016	November 28, 2016	$	293,503	$	0.18230
September 16, 2016	December 15, 2016	December 27, 2016	$	293,503	$	0.18230