Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 6 Months Ended
Jun. 30, 2011
Stockholders' Equity [Abstract]  
Stockholders' Equity
6. Stockholders’ Equity
The following table summarizes the changes in stockholders’ equity for the six months ended June 30, 2011:
                                                         
                                            Distributions in        
                            Capital in     Notes     Excess of     Total  
    Preferred     Senior Common     Common     Excess of     Receivable     Accumulated     Stockholders’  
    Stock     Stock     Stock     Par Value     from Employees     Earnings     Equity  
Balance at December 31, 2010
  $ 2     $ —     $ 9     $ 174,261     $ (963 )   $ (61,934 )   $ 111,375  
 
                                         
 
                                                       
Issuance of common stock, net
    —       —       2       34,403       —       —       34,405  
 
                                                       
Repayment of principal on employee notes receivable
    —       —       —       —       532       —       532  
 
                                                       
Distributions declared to common, senior common and preferred stockholders
    —       —       —       —       —       (9,302 )     (9,302 )
 
                                                       
Net income
    —       —       —       —       —       2,850       2,850  
 
                                                       
 
                                         
Balance at June 30, 2011
  $ 2     $ —     $ 11     $ 208,664     $ (431 )   $ (68,386 )   $ 139,860  
 
                                         
The following table is a summary of all outstanding notes issued to employees of the Adviser for the exercise of stock options:
                                                         
    Number of     Strike Price     Amount of     Outstanding Balance     Outstanding Balance              
    Options     of Options     Promissory Note     of Employee Loans at     of Employee Loans at     Maturity Date     Interest Rate  
Date Issued   Exercised     Exercised     Issued to Employees     June 30, 2011     December 31, 2010     of Note     on Note  
Sep 2004
    25     $ 15.00     $ 375     $ 20     $ 20     Sep 2013     5.00 %
Apr 2006
    12       16.10       193       4       5     Apr 2015     7.77 %
May 2006
    50       16.85       843       —       531     May 2016     7.87 %
May 2006
    2       16.10       32       32       32     May 2016     7.87 %
Nov 2006
    25       15.00       375       375       375     Nov 2015     8.15 %
 
                                               
 
 
    114             $ 1,818     $ 431     $ 963                  
 
                                               
In accordance with ASC 505-10-45-2, “Equity,” receivables from employees for the issuance of capital stock to employees prior to the receipt of cash payment should be reflected in the balance sheet as a reduction to stockholders’ equity. Therefore, these notes were recorded as full recourse loans to employees and are included in the equity section of the accompanying consolidated balance sheets. As of June 30, 2011, each loan maintained its full recourse status.
The Company’s Board of Directors declared the following distributions per share for the three and six months ended June 30, 2011 and 2010:
                                 
    For the three months ended June 30,   For the six months ended June 30,
    2011   2010   2011   2010
Common Stock
  $ 0.375     $ 0.375     $ 0.750     $ 0.750  
Senior Common Stock
  $ 0.2625     $ 0.2625     $ 0.5250     $ 0.5250  
Series A Preferred Stock
  $ 0.4843749     $ 0.4843749     $ 0.9687498     $ 0.9687498  
Series B Preferred Stock
  $ 0.4688     $ 0.4688     $ 0.9375     $ 0.9375  
On February 2, 2011, the Company sold 725,000 shares of its common stock at $18.35 per share in an underwritten public offering of its common stock. The Company also granted the underwriters a 30-day option to purchase up to 108,750 shares of common stock on the same terms and conditions to cover over-allotments, if any. On February 11, 2011, the underwriters exercised their option to purchase an additional 108,750 shares of common stock. The net proceeds, including the over-allotment, after deducting the underwriting discount and offering expenses were $14,322. The Company used the proceeds of the offering to repay a portion of the outstanding balance under its line of credit and for general corporate purposes.
On June 15, 2011, the Company sold 1,200,000 shares of its common stock at $17.55 per share in an underwritten public offering of its common stock. The Company also granted the underwriters a 30-day option to purchase up to 180,000 shares of common stock on the same terms and conditions to cover over- allotments, if any. On July 6, 2011, the underwriters exercised their option to purchase an additional 174,000 shares of common stock. The net proceeds, including the over-allotment, after deducting the underwriting discount and offering expenses were $22,705. The Company used the proceeds of the offering to repay a portion of the outstanding balance under its line of credit and for general corporate purposes.
The Company has an open market sale agreement, or the Open Market Sale Agreement, with Jefferies & Company, Inc., or Jefferies, under which it may, from time to time, offer to sell shares of its common stock with an aggregate sales price of up to $25,000 on the open market through Jefferies, as agent, or to Jefferies, as principal. As of June 30, 2011, the Company had sold 192,365 shares with net proceeds of $3,400, and has a remaining capacity to sell up to $21,600 of common stock under the Open Market Sale Agreement with Jefferies. The program was not utilized during the three months ending June 30, 2011.
On March 28, 2011, the Company commenced an offering of an aggregate of 3,500,000 shares of its senior common stock, par value $0.001 per share, at a price to the public of $15.00 per share, of which 3,000,000 shares are intended to be offered pursuant to the primary offering and 500,000 shares are intended to be offered pursuant to the Company’s distribution reinvestment plan (the “DRIP”). The Company, however, reserves the right to reallocate the number of shares being offered between the primary offering and the DRIP. To date the Company has not sold any shares of senior common stock in this ongoing offering.