Equity

9 Months Ended

Sep. 30, 2022

Equity

Equity

Note 16. Equity

Preferred stock

As of September 30, 2022, and December 31, 2021, the Company had two million shares of preferred stock authorized but none were issued or outstanding.

Common Stock

Our voting common stock is traded on The Nasdaq Capital Market under the symbol “MDWT.” Midwest has authorized 20 million shares of voting common stock and two million shares of non-voting common stock. As of September 30, 2022, Midwest had 3,727,976 and as of December 31, 2021, Midwest had 3,737,564 shares of voting common stock issued and outstanding. As of those dates, there were no shares of Midwest’s non-voting common stock issued or outstanding.

Midwest holds approximately 4,500 shares of voting common stock in its treasury.

Additional paid-in capital

Additional paid-in capital is primarily comprised of the cumulative cash that exceeds the par value received by the Company in conjunction with past issuances of its shares. It also is increased by the amortization expense of the consideration calculated at inception of the stock option grants as discussed in Note 10 – Long-Term Incentive Plans above.

Accumulated Other Comprehensive Income (AOCI)

AOCI represents the cumulative other comprehensive income (loss) (OCI) items that are reported separate from net income (loss) and detailed on the Consolidated Statements of Comprehensive Loss. AOCI includes the unrealized gains and losses on investments and DAC, net of offsets and taxes are as follows:

(In thousands)	Unrealized investment gains (losses) on fixed maturities, net of offsets
Balance at December 31, 2020	$	6,431
Other comprehensive (loss) before reclassifications, net of tax		(1,422)
Less: Reclassification adjustments for losses realized in net income		(2,375)
Balance, December 31, 2021		2,634
Other comprehensive (loss) before reclassifications, net of tax		(55,483)
Less: Reclassification adjustments for losses realized in net income, net of tax		(94)
Balance, September 30, 2022	$	(52,943)