Annual report pursuant to Section 13 and 15(d)

SERIES C PREFERRED STOCK

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SERIES C PREFERRED STOCK
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
SERIES C PREFERRED STOCK
NOTE H - SERIES C PREFERRED STOCK
On February 23, 2022, the Company completed a private placement of an aggregate of 145,000 preferred shares (125,000 and 20,000 shares to ExxonMobil Renewables, an affiliate of ExxonMobil, and the Senior Lenders, respectively) of Series C Preferred Stock and warrants exercisable to purchase an aggregate of 18,547,731 (5,017,008 issued to settle the Warrant Commitment Liability to the Senior Lenders - see Note B - Liquidity) shares of our common stock at an exercise price of $2.25 per share to ExxonMobil Renewables, and 11 other institutional investors (all of whom are also lenders under our existing Senior Credit Agreement) respectively, for an aggregate purchase price of $145.0 million and the settlement of the Warrant Commitment Liability (see Note B - Liquidity). As a result of the difference between the $20.0 million received by the Company from the Senior Lenders for the purchase of the Series C Preferred Stock and the fair value of the Series C Preferred Stock, the Company recorded a $9.9 million deemed contribution from the Senior Lenders to Additional paid-in Capital.
For the years ended December 31, 2023 and December 31, 2022, we did not declare or pay cash distributions to the holders of the Series C Preferred Stock. Included in the carrying value of the Series C preferred Stock as of December 31, 2023 was the amount of the cumulative, undeclared, unpaid dividends of $45.6 million, along with the accretion of $17.9 million for the year ended December 31, 2023. For the year ended December 31, 2022, the amount of the cumulative, undeclared, unpaid dividends of $18.6 million, along with the accretion of $6.7 million for the year ended December 31, 2023. The amount of accretion is recognized as a reduction to Additional Paid-in Capital for the respective periods.