Note 14 - Stockholders' Equity
|3 Months Ended|
Jan. 31, 2019
|Notes to Financial Statements|
|Stockholders' Equity Note Disclosure [Text Block]||
. Stockholders’ Equity
In conjunction with the Business Combination, all common and preferred shares that were in existence for the Predecessor were settled and
nolonger outstanding subsequent to
December 5, 2018.
The Company’s amended and restated certificate of incorporation authorizes the issuance of
500,000,000shares of common stock, par value
10,000,000shares of preferred stock, par value
$0.0001.Immediately following of the Business Combination, there were:
The Company’s Series A Preferred Stock does
notpay dividends and will be convertible into shares of the Company’s common stock at a
1:1ratio (subject to customary adjustments) at any time following
June 6, 2019.The Company has the right to elect to redeem all or a portion of the Series A Preferred Stock at its election after
December 6, 2022for cash at a redemption price equal to the amount of the principal investment plus an additional cumulative amount that will accrue at an annual rate of
7.0%thereon. In addition, if the volume weighted average price of shares of the Company’s common stock equals or exceeds
30consecutive days, then the Company will have the right to require the holder of the Series A Preferred Stock to convert its Series A Preferred Stock into Company common stock, at a ratio of
1:1(subject to customary adjustments).
The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events
notsolely within the Predecessor’s control) are classified as temporary equity. The Company has performed an analysis of the redemption features contained within the preferred stock and has determined that embedded features other than the change in control feature identified and evaluated have been determined to be solely within the control of the issuer. ASR
268requires equity instruments with redemption features that are
notsolely within the control of the issuer to be classified outside of permanent equity, often referred to as classification in “temporary equity”. The Company has presented such amounts outside of temporary equity commensurate with the aforementioned guidance.
Pursuant to the Predecessor’s articles of incorporation, as amended, the Predecessor was authorized to issue
$0.001par value common stock and
$0.001par value preferred stock.
October 31, 2018,the Predecessor had
shares of common stock issued and outstanding and
preferred shares issued and outstanding. The preferred shares had a liquidation preference of
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef