Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36063 | ||
Entity Registrant Name | Altisource Asset Management Corporation | ||
Entity Incorporation, State or Country Code | VI | ||
Entity Tax Identification Number | 66-0783125 | ||
Entity Address, Address Line One | 5100 Tamarind Reef | ||
Entity Address, City or Town | Christiansted | ||
Entity Address, Country | VI | ||
Entity Address, Postal Zip Code | 00820 | ||
City Area Code | 704 | ||
Local Phone Number | 275-9113 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | AAMC | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9.2 | ||
Entity Common Stock, Shares Outstanding | 2,048,319 | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement relating to its 2021 annual meeting of shareholders (the "2021 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Registrant intends to file the 2021 Proxy Statement with the U.S. Securities and Exchange Commission not later than 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001555074 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 41,623 | $ 18,906 |
Front Yard common stock, at fair value | 47,355 | 20,046 |
Receivable from Front Yard | 3,414 | 5,014 |
Prepaid expenses and other assets | 3,328 | 1,009 |
Current assets held for sale | 894 | 2,176 |
Total current assets | 96,614 | 47,151 |
Non-current assets: | ||
Right-of-use lease assets | 656 | 732 |
Other non-current assets | 503 | 1,470 |
Non-current assets held for sale | 1,979 | 3,895 |
Total non-current assets | 3,138 | 6,097 |
Total assets | 99,752 | 53,248 |
Current liabilities: | ||
Accrued salaries and employee benefits | 2,539 | 3,762 |
Accounts payable and accrued liabilities | 9,152 | 1,165 |
Short-term lease liabilities | 75 | 71 |
Current liabilities held for sale | 1,338 | 2,002 |
Total current liabilities | 13,104 | 7,000 |
Non-current liabilities | ||
Long-term lease liabilities | 600 | 675 |
Other non-current liabilities | 1,027 | 0 |
Non-current liabilities held for sale | 1,599 | 3,543 |
Total non-current liabilities | 3,226 | 4,218 |
Total liabilities | 16,330 | 11,218 |
Commitments and contingencies (Note 6) | 0 | 0 |
Redeemable preferred stock: | ||
Series A preferred stock, $0.01 par value, 250,000 shares issued and outstanding as of December 31, 2020 and 2019; redemption value $250,000 | 250,000 | 249,958 |
Stockholders' deficit: | ||
Common stock, $.01 par value, 5,000,000 authorized shares; 2,966,207 and 1,650,212 shares issued and outstanding, respectively, as of December 31, 2020 and 2,897,177 and 1,598,512 shares issued and outstanding, respectively, as of December 31, 2019 | 30 | 29 |
Additional paid-in capital | 46,574 | 44,646 |
Retained earnings | 63,426 | 23,662 |
Accumulated other comprehensive loss | (65) | (33) |
Treasury stock, at cost, 1,315,995 and 1,298,665 shares as of December 31, 2020 and 2019, respectively | (276,543) | (276,232) |
Total stockholders' deficit | (166,578) | (207,928) |
Total liabilities and equity | $ 99,752 | $ 53,248 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, redemption amount | $ 250,000,000 | $ 250,000,000 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 2,966,207 | 2,897,177 |
Common stock, shares outstanding (in shares) | 1,650,212 | 1,598,512 |
Treasury stock, shares (in shares) | 1,315,995 | 1,298,665 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses: | ||
Salaries and employee benefits | $ 11,977 | $ 11,367 |
Legal and professional fees | 6,205 | 3,444 |
General and administrative | 2,328 | 2,334 |
Total expenses | 20,510 | 17,145 |
Other income: | ||
Change in fair value of Front Yard common stock | 6,270 | 5,864 |
Dividend income on Front Yard common stock | 244 | 731 |
Other income | 45 | 158 |
Total other income | 6,559 | 6,753 |
Net loss from continuing operations before income taxes | (13,951) | (10,392) |
Income tax expense | 769 | 165 |
Net loss from continuing operations | (14,720) | (10,557) |
Discontinued Operations: | ||
Income from operations related to Front Yard, net of tax | 54,643 | 7,944 |
Loss on disposal of operation related to Front Yard | (102) | 0 |
Net gain on discontinued operations | 54,541 | 7,944 |
Net income (loss) | 39,821 | (2,613) |
Amortization of preferred stock issuance costs | (42) | (206) |
Net income (loss) attributable to common stockholders | $ 39,779 | $ (2,819) |
Net earnings (loss) per share of common stock – basic: | ||
Continuing operations - basic ( in USD per share) | $ (9.05) | $ (6.77) |
Discontinued operations - basic (in USD per share) | 33.43 | 5 |
Earnings (loss) per basic common share (in USD per share) | $ 24.38 | $ (1.77) |
Weighted average common stock outstanding – basic (in shares) | 1,631,326 | 1,589,952 |
Net earnings (loss) per share of common stock – diluted: | ||
Continuing operations - diluted (in USD per share) | $ (9.05) | $ (6.77) |
Discontinued operations - diluted (in USD per share) | 33.43 | 5 |
Earnings (loss) per diluted common share (in USD per share) | $ 24.38 | $ (1.77) |
Weighted average common stock outstanding – diluted (in shares) | 1,631,326 | 1,589,952 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 39,821 | $ (2,613) |
Other comprehensive loss: | ||
Currency translation adjustments, net | (32) | (33) |
Total other comprehensive loss | (32) | (33) |
Comprehensive income (loss) | $ 39,789 | $ (2,646) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2018 | 2,862,760 | |||||||
Beginning balance at Dec. 31, 2018 | $ (207,156) | $ (77) | $ 29 | $ 42,245 | $ 26,558 | $ (77) | $ 0 | $ (275,988) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common shares issued under share-based compensation plans, net of employee tax withholdings (in shares) | 34,417 | |||||||
Shares withheld for taxes upon vesting of restricted stock | (244) | (244) | ||||||
Amortization of preferred stock issuance costs | (206) | (206) | ||||||
Share-based compensation | 2,401 | 2,401 | ||||||
Currency translation adjustments, net | (33) | (33) | ||||||
Net income (loss) | $ (2,613) | (2,613) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 1,598,512 | 2,897,177 | ||||||
Ending balance at Dec. 31, 2019 | $ (207,928) | $ 29 | 44,646 | 23,662 | (33) | (276,232) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common shares issued under share-based compensation plans, net of employee tax withholdings (in shares) | 69,030 | |||||||
Common shares issued under share-based compensation plans, net of employee tax withholdings | 14 | $ 1 | 13 | |||||
Shares withheld for taxes upon vesting of restricted stock | (311) | (311) | ||||||
Amortization of preferred stock issuance costs | (42) | (42) | ||||||
Share-based compensation | 1,915 | 1,915 | ||||||
Currency translation adjustments, net | (32) | (32) | ||||||
Other - disposition | (15) | (15) | ||||||
Net income (loss) | $ 39,821 | 39,821 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 1,650,212 | 2,966,207 | ||||||
Ending balance at Dec. 31, 2020 | $ (166,578) | $ 30 | $ 46,574 | $ 63,426 | $ (65) | $ (276,543) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ 39,821 | $ (2,613) |
Less: Income from discontinued operations, net of tax | 54,541 | 7,944 |
Loss from continuing operations | (14,720) | (10,557) |
Adjustments to reconcile net income (loss) from continuing operations to net cash from (used in) operating activities: | ||
Depreciation | 354 | 322 |
Change in fair value of Front Yard common stock | (6,270) | (5,864) |
Share-based compensation | 1,915 | 2,401 |
Amortization of operating lease right-of-use assets | 76 | 114 |
Changes in operating assets and liabilities, net of effects from discontinued operations: | ||
Receivable from Front Yard | 1,600 | (1,046) |
Prepaid expenses and other assets | (2,477) | 11 |
Other non-current assets | 699 | (31) |
Accrued salaries and employee benefits | (1,206) | (375) |
Accounts payable and accrued liabilities | (119) | 156 |
Other non-current liabilities | 1,027 | 0 |
Operating lease liabilities | (71) | (58) |
Net cash used in continuing operations | (19,192) | (14,927) |
Net cash from discontinued operations | 37,798 | 8,183 |
Net cash from (used in) operating activities | 18,606 | (6,744) |
Investing activities: | ||
Investment in property and equipment | (86) | (163) |
Net cash used in continuing operations | (86) | (163) |
Net cash from (used in) discontinued operations | 3,643 | (23) |
Net cash from (used in) investing activities | 3,557 | (186) |
Financing activities: | ||
Proceeds from stock option exercises | 23 | 0 |
Payment of tax withholdings on exercise of stock options | (9) | 0 |
Shares withheld for taxes upon vesting of restricted stock | (311) | (244) |
Net receipts from subsidiaries included in disposal group | 1,010 | 84 |
Net cash from (used in) continuing operations | 713 | (160) |
Net cash used in discontinued operations | (1,010) | (84) |
Net cash used in financing activities | (297) | (244) |
Net change in cash and cash equivalents | 21,866 | (7,174) |
Effect of exchange rate changes on cash and cash equivalents | (24) | (32) |
Consolidated cash and cash equivalents, beginning of period | 19,965 | 27,171 |
Consolidated cash and cash equivalents, end of the period | 41,807 | 19,965 |
Supplemental disclosure of cash flow information (continuing and discontinued operations): | ||
Income taxes paid | 428 | 594 |
Right-of-use lease assets recognized - operating leases | 0 | 4,684 |
Operating lease liabilities recognized | 0 | 4,671 |
Consolidated cash and cash equivalents | $ 41,807 | $ 27,171 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Altisource Asset Management Corporation (“we,” “our,” “us,” “AAMC,” or the “Company”) was incorporated in the U.S. Virgin Islands (“USVI”) on March 15, 2012 (our “inception”) and commenced operations on December 21, 2012. Our primary business is to provide asset management and certain corporate governance services to institutional investors. We have also been a registered investment adviser under Section 203(c) of the Investment Advisers Act of 1940 since October 2013. We are in the process of establishing and launching multiple new lines of business, including an investment fund, a short-term investor loan aggregation and origination businesses, and the establishment of strategic relationships with real estate loan originators. These business lines leverage our history and experience in asset management, real estate investing and real estate operations. We have taken steps to reduce our annual operating expenses, including reductions in our physical office footprint and the optimization of our workforce. Though our potential new businesses are in the development stage, we expect that they will include asset management services, investments in real estate related assets or other businesses that leverage our experience. Our primary client has been Front Yard Residential Corporation (“Front Yard”), a public real estate investment trust (“REIT”) focused on acquiring and managing quality, affordable single-family rental (“SFR”) properties throughout the United States. All of our revenue for all periods presented was generated through our asset management agreements with Front Yard. On March 31, 2015, we entered into an asset management agreement (the “Former AMA”) with Front Yard, under which we were the exclusive asset manager for Front Yard for an initial term of 15 years from April 1, 2015, with two potential five-year extensions. The Former AMA provided for a fee structure in which we were entitled to a base management fee, an incentive management fee and a conversion fee for mortgage loans and real estate owned (“REO”) properties that became rental properties during each quarter. On May 7, 2019, we entered into an amended and restated asset management agreement with Front Yard (the “Amended AMA”), under which we are the exclusive asset manager for Front Yard for an initial term of five years. The Amended AMA will renew automatically each year thereafter for an additional one-year term, subject in each case to certain termination provisions. The Amended AMA provides for a fee structure in which we are entitled to a Base Management Fee and a potential Incentive Fee. Accordingly, our operating results continue to be highly dependent on Front Yard's operating results. See Note 7 for additional details of these asset management agreements. On August 13, 2020, AAMC and Front Yard entered into a Termination and Transition Agreement (the “Termination Agreement”), pursuant to which the Company and Front Yard have agreed to effectively internalize the asset management function of Front Yard. The Termination Agreement provided that the Amended AMA would terminate following a transition period to enable the internalization of Front Yard’s asset management function, allow for the assignment of certain vendor contracts and implement the transfer of certain employees to Front Yard and the training of required replacement employees at each company. The transition period ended at the close of business, December 31, 2020, the time that AAMC and Front Yard mutually agreed that all required transition activities have been successfully completed (the “Termination Date”). On the Termination Date, the Amended AMA terminated, and AAMC will no longer provide services to Front Yard under the Amended AMA. Below are the material terms of the Termination Agreement: • Front Yard paid AAMC an aggregate termination fee of $46.0 million (the “Termination Fee”), consisting of the following payments: ◦ $15.0 million paid in cash to AAMC on August 17, 2020, ◦ $15.0 million paid in cash on the Termination Date, and ◦ $16.0 million paid in Front Yard common stock on the Termination Date. • Front Yard has or will acquire the equity interests of AAMC's Indian subsidiary, the equity interests of AAMC's Cayman Islands subsidiary, the right to solicit and hire designated AAMC employees that currently oversee the management of Front Yard's business and other assets of AAMC that are used in connection with the operation of Front Yard's business (the “Transferred Assets”) for an aggregate purchase price of $8.2 million ($3.2 million of which was paid in cash to AAMC on August 17, 2020), and the remaining $5.0 million was paid in Front Yard common stock on the termination date. • On the Termination Date, in satisfaction of the amounts payable in Front Yard stock, we received 1,298,701 shares of Front Yard common stock. We recorded a nominal gain on the shares received. • On the Termination Date, AAMC assigned its office lease in Charlotte, North Carolina. Certain assets related to the lease, primarily office and employee-related equipment were written off, none of which were individually material, and were recorded through other income (loss) in the Consolidated Statements of Income. • Front Yard was obligated to continue to pay Base Management Fees to AAMC under the Amended AMA in the amount of approximately $3.6 million per quarter, subject to proration for partial quarters, through the date that Front Yard delivered written notice to AAMC that the transition has been satisfactorily completed. • AAMC has agreed to vote any shares of Front Yard common stock that it receives in connection with the Termination Agreement in accordance with recommendations of the Front Yard board of directors for a period of one year following the Termination Date, including regarding the approval of the Front Yard Merger Agreement and related transactions, which were presented to Front Yard’s stockholders. • Effective two business days prior to the Termination Date, Mr. Ellison resigned as Co-Chief Executive Officer of AAMC. On December 31, 2020, AAMC and Front Yard completed the transition contemplated by the Termination and Transition Agreement, dated August 13, 2020. We have evaluated the nature of the services provided to Front Yard in exchange for the Termination Fee and have determined that such services constitute a series of distinct services that should be accounted for as a single performance obligation completed over time, which is simultaneously performed by us and consumed by Front Yard, and the Termination Fee was recognized through the Termination Date of December 31, 2020. During the third quarter of 2020, we received an upfront payment of $3.2 million of the $8.2 million aggregate purchase price of the Transferred Assets. In the fourth quarter of 2020, we received a payment of the remaining $5.0 million, in Front Yard common stock, of the aggregate purchase price of the Transferred Assets in advance of the sale of shares. We have included these upfront payments within accounts payable and accrued liabilities in our condensed consolidated balance sheet. We have concluded that the Transferred Assets meets the held-for-sale criteria and have therefore classified the Transferred Assets as held for sale on our condensed consolidated balance sheets. The termination of the Amended AMA and the sale of the Transferred Assets also represents a significant strategic shift that will have a major effect on our operations and financial results. Therefore, we have classified the results of operations related to Front Yard as discontinued operations in our condensed consolidated statements of operations. For further information, please see Note 3 . Basis of presentation and use of estimates The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All wholly owned subsidiaries are included, and all intercompany accounts and transactions have been eliminated. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Redeemable Preferred Stock Issuance of Series A Convertible Preferred Stock in 2014 Private Placement During the first quarter of 2014, AAMC issued 250,000 shares of Series A Convertible Preferred Stock (the “Series A Shares”) for $250.0 million to institutional investors. Under the Certificate of Designations of the Series A Shares (the “Certificate”), we have the option to redeem all of the Series A Shares on March 15, 2020 and on each successive five-year anniversary of March 15, 2020 thereafter. In connection with these same redemption dates, each holder of our Series A Shares has the right to give notice requesting us to redeem all of the shares of Series A Shares held by such holder out of legally available funds. In accordance with the terms of the Certificate, if we have legally available funds to redeem all, but not less than all, of the Series A Shares requested to be redeemed on a redemption date, we will deliver to those holders who have requested redemption in accordance with the Certificate a notice of redemption. If we do not have legally available funds to redeem all, but not less than all, of the Series A Shares requested to be redeemed on a redemption date, we will not provide a notice of redemption. The redemption right will be exercisable in connection with each redemption date every five years until the mandatory redemption date in 2044. If we are required to redeem all of a holder’s Series A Shares, we are required to do so for cash at a price equal to $1,000 per share (the issuance price) out of legally available funds. Between January 31, 2020 and February 3, 2020, we received purported notices from holders of our Series A Shares requesting us to redeem an aggregate of $250.0 million liquidation preference of our Series A Shares on March 15, 2020. We do not have legally available funds to redeem all of the Series A Shares on March 15, 2020. As a result, we do not believe, under the terms of the Certificate, that we are obligated to redeem any of the Series A Shares under the Certificate, and, consistent with the exclusive forum provisions of our Third Amended and Restated Bylaws, on January 27, 2020, we filed a claim for declaratory relief in the Superior Court of the Virgin Islands, Division of St. Croix, against Luxor Capital Group, LP and certain of its funds and managed accounts (collectively, “Luxor”) to confirm our interpretation of the Certificate. Luxor has filed a motion to remove the action to the U.S District Court for the Virgin Islands. On February 3, 2020, Luxor filed a complaint in the Supreme Court of the State of New York, County of New York, against AAMC for breach of contract, specific performance, unjust enrichment, and related damages and expenses. The complaint alleges that AAMC’s position that it will not redeem any of Luxor’s Series A Shares on the March 15, 2020 redemption date is a material breach of AAMC’s redemption obligations under the Certificate. Luxor seeks an order requiring AAMC to redeem its Series A Shares, recovery of no less than $144,212,000 in damages, which is equal to the amount Luxor would receive if AAMC redeemed all of Luxor’s Series A Shares at the redemption price of $1,000 per share set forth in the Certificate, as well as payment of its costs and expenses in the lawsuit. In the alternative, Luxor seeks a return of its initial purchase price of $150,000,000 for the Series A Shares, as well as payment of its costs and expenses in the lawsuit. On May 25, 2020, Luxor’s complaint was amended to add Putnam Equity Spectrum Fund and Putnam Capital Spectrum Fund (collectively, “Putnam”), which also invested in the Series A Shares, as plaintiff. Putnam holds 81,800 Series A Shares. Collectively, Luxor and Putnam seek a recovery of no less than $226,012,000 in damages, which is equal to the amount Luxor and Putnam would receive if AAMC redeemed all of Luxor’s and Putnam’s Series A Shares at the redemption price of $1,000 per share set forth in the Certificate, as well as payment of their costs and expenses in the lawsuit. In the alternative, Luxor and Putnam seek a return of the initial purchase price of $231,800,000 for the Series A Shares, as well as payment of their costs and expenses in the lawsuit. On June 12, 2020, AAMC moved to dismiss the Amended Complaint in favor of AAMC’s first-filed declaratory judgment action in the U.S. Virgin Islands. On August 4, 2020, the court denied AAMC’s motion to dismiss. AAMC is currently considering whether to appeal the court’s decision. For information regarding updates to the Redeemable Preferred Stock that occurred subsequent to December 31, 2020, refer to Note 13 . AAMC intends to continue to pursue its strategic business initiatives despite this litigation. If Luxor were to prevail in its lawsuit, we may need to cease or curtail our business initiatives and our liquidity could be materially and adversely affected. The holders of our Series A Shares are not entitled to receive dividends with respect to their Series A Shares. The Series A Shares are convertible into shares of our common stock at a conversion price of $1,250 per share (or an exchange rate of 0.8 shares of common stock for Series A Share), subject to certain anti-dilution adjustments. Upon certain change of control transactions or upon the liquidation, dissolution or winding up of the Company, holders of the Series A Shares will be entitled to receive an amount in cash per Series A Share equal to the greater of: (i) $1,000 plus the aggregate amount of cash dividends paid on the number of shares of common stock into which such Series A Shares were convertible on each ex-dividend date for such dividends; and (ii) the number of shares of common stock into which the Series A Shares are then convertible multiplied by the then-current market price of the common stock. The Certificate confers no voting rights to holders, except with respect to matters that materially and adversely affect the voting powers, rights or preferences of the Series A Shares or as otherwise required by applicable law. With respect to the distribution of assets upon the liquidation, dissolution or winding up of the Company, the Series A Shares rank senior to our common stock and on parity with all other classes of preferred stock that may be issued by us in the future. The Series A Shares are recorded net of issuance costs, which were amortized on a straight-line basis through the first potential redemption date in March 2020. 2016 Employee Preferred Stock Plan On May 26, 2016, the 2016 Employee Preferred Stock Plan (the “Employee Preferred Stock Plan”) was approved by our stockholders. Pursuant to the Employee Preferred Stock Plan, the Company may grant one or more series of non-voting preferred stock, par value $0.01 per share, in the Company to induce certain employees to become employed and remain employees of the Company in the USVI, and any of its future USVI subsidiaries, to encourage ownership of shares in the Company by such USVI employees and to provide additional incentives for such employees to promote the success of the Company’s business. Pursuant to our stockholder approval of the Employee Preferred Stock Plan, on December 29, 2016, the Company authorized 14 additional series of preferred stock of the Company, consisting of Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series G Preferred Stock, Series H Preferred Stock, Series I Preferred Stock, Series J Preferred Stock, Series K Preferred Stock, Series L Preferred Stock, Series M Preferred Stock, Series N Preferred Stock and Series O Preferred Stock, and each series shall consist of up to an aggregate of 1,000 shares. We have issued shares of preferred stock under the Employee Preferred Stock Plan to certain of our USVI employees. These shares of preferred stock are mandatorily redeemable by us in the event of the holder's termination of service with the Company for any reason. At December 31, 2020 and 2019, we had 1,100 and 1,000 and shares outstanding, respectively, and we included the redemption value of these shares of and $11,000 and $10,000 respectively, within accounts payable and accrued liabilities in our consolidated balance sheets. In December 2019 and February 2019, our Board of Directors declared and paid an aggregate of $1.0 million (in relation to the 2019 fiscal year), and $1.1 million (in relation to the 2018 fiscal year), respectively, of dividends on the preferred stock issued under the Employee Preferred Stock Plan. Such dividends are included in salaries and employee benefits in our consolidated statement of operations. Recently issued accounting standards Adoption of recent accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”). ASU 2016-02 requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. Accounting by lessors is substantially unchanged from prior practice as lessors will continue to recognize lease revenue on a straight-line basis. The FASB has also issued multiple ASUs amending certain aspects of Topic 842. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. The amendments in ASU 2016-02 should be applied on a modified retrospective transition basis, and a number of practical expedients may apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. We adopted this standard as of January 1, 2019 when the standard became effective and was required to be adopted. Consistent with the standard, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to January 1, 2019. As mentioned above, the new standard provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity's ongoing accounting not to separate the lease and non-lease components, including common area maintenance, property taxes and insurance on our office leases that is paid along with rents. We elected the short-term lease exemption for all leases that qualify; as a result, we will not recognize right-of-use assets or lease liabilities for leases with a term of less than 12 months at inception. Upon our adoption of this standard, we recognized operating lease right-of-use assets of $2.8 million, lease liabilities of $2.8 million and a cumulative-effect adjustment to retained earnings of $(0.1) million. We have also provided the required incremental disclosures about our leasing activities on a prospective basis in Note 5 . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, which amends the guidance on measuring credit losses on financial assets held at amortized cost. ASU 2016-13, as amended, is intended to address the issue that the previous “incurred loss” methodology was restrictive for an entity's ability to record credit losses based on not yet meeting the “probable” threshold. The new language requires these assets to be valued at amortized cost presented at the net amount expected to be collected with a valuation provision. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in ASU 2016-13 should be applied on a modified retrospective transition basis. We adopted this standard as of January 1, 2020, and our adoption of the standard did not have a material impact on our consolidated financial statements. Recently issued accounting standards not yet adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. We are currently evaluating the impact of this standard. ASU 2020-04. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. These amendments are not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. ASU No. 2020-04 is effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. We will adopt this standard when LIBOR is discontinued. We are evaluating the impact the new standard will have on our consolidated financial statements and related disclosures, but do not anticipate a material impact. Recent accounting pronouncements pending adoption not discussed above or in the 2019 Form 10-K are either not applicable or will not have, or are not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Cash equivalents We consider highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Certain account balances exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. To mitigate this risk, we maintain our cash and cash equivalents at large national or international banking institutions. Consolidations The consolidated financial statements include the accounts of AAMC and its consolidated subsidiaries, which include the voting interest entities in which we are determined to have a controlling financial interest. Our voting interest entities consist entirely of our wholly owned subsidiaries. We also consider variable interest entities (“VIEs”) for consolidation where we are the primary beneficiary. We had no VIEs or potential VIEs as of and for the years ended December 31, 2020 or 2019. Earnings per share Basic earnings per share is computed by dividing net income or loss, less amortization of preferred stock issuance costs, by the weighted average common stock outstanding during the period. Diluted earnings per share is computed by dividing net income or loss by the weighted average common stock outstanding for the period plus the dilutive effect of (i) stock options and restricted stock outstanding using the treasury stock method and (ii) Series A Preferred Stock using the if-converted method. Weighted average common stock outstanding - basic excludes the impact of unvested restricted stock since dividends paid on such restricted stock are non-participating. Fair value of financial instruments We designate fair value measurements into three levels based on the lowest level of substantive input used to make the fair value measurement. Those levels are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Front Yard common stock The shares of Front Yard common stock that we hold is reported at fair value based on unadjusted quoted market prices in active markets. Changes in the fair value of Front Yard common stock are recognized through net income. Our ability to sell these securities, or the price ultimately realized for these securities, depends upon the demand in the market and potential restrictions on the timing at which we may be able to sell the Front Yard common stock when desired. Income taxes Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to our judgment, we reduce a deferred tax asset by a valuation allowance if it is “more likely than not” that some or the entire deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and we recognize tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. For all temporary differences, we have considered the potential future sources of taxable income against which they may be realized. In so doing, we have taken into account temporary differences that we expect to reverse in future years and those where it is unlikely. Where it is more likely than not that there will not be potential future taxable income to offset a temporary difference, a valuation allowance has been recorded. Lastly, the Company accounts for the tax on global intangible low-taxed income (“GILTI”) as incurred and therefore has not recorded deferred taxes related to GILTI on its foreign subsidiaries. Leases On January 1, 2019, we adopted ASU 2016-02, including various associated updates and amendments, which together comprise the requirements for lease accounting under ASC 842. ASU 2016-02 fundamentally changes accounting for operating leases by requiring lessees to recognize a liability to make lease payments and a right-of-use asset over the term of the lease. We also adopted the “package of practical expedients,” which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We also elected the short-term lease exemption for all leases that qualify; as a result, we will not recognize right-of-use assets or lease liabilities for leases with a term of less than 12 months at inception. We lease office space under various operating leases. Our office leases are generally for terms of one Other non-current assets Other non-current assets includes leasehold improvements; furniture, fixtures and equipment; deferred tax assets and miscellaneous other assets. The cost basis of fixed assets is depreciated using the straight-line method over an estimated useful life of three Assets and liabilities held for sale Assets and liabilities held for sale represent the disposal group held at the lower of cost or fair value less estimated costs to sell. See Note 3 for further information on Discontinued Operations. Revenue recognition Under the Amended AMA, we administered certain of Front Yard's business activities and day-to-day operations and provided corporate governance services to Front Yard. Base Management Fees are earned by us ratably throughout the applicable quarter and are initially based on Front Yard's Adjusted AFFO (as defined in the Amended AMA), subject to a minimum amount and certain potential adjustments. In the event that Front Yard's performance exceeds certain hurdles, we would have been entitled to an annual Incentive Fee based on a percentage of Front Yard's earnings in excess of such hurdle, subject to certain potential adjustments. Under the Former AMA, the base management fees were earned by us ratably throughout the applicable quarter and were based on a percentage of Front Yard's average invested capital (as defined in the Former AMA). See Note 7 for further information on the asset management agreements with Front Yard. We have evaluated the nature of the services provided to Front Yard and have determined that such services constitute a series of distinct services that should be accounted for as a single performance obligation completed over time, which is simultaneously performed by us and consumed by Front Yard. Therefore, we earn management fees are ratably over the applicable fiscal period. Under both the Amended AMA and the Former AMA, we received expense reimbursements from Front Yard for the compensation and benefits of the General Counsel dedicated to Front Yard and certain operating expenses incurred on Front Yard's behalf. These expense reimbursements were earned by us at the time the underlying expense is incurred. In addition, under the Former AMA, we also received conversion fees based on a percentage of the fair value of properties that became rented for the first time in each quarter. Such conversion fees were earned by us in the quarter that the conversion to rentals occurred. We have determined that the expense reimbursements are variable consideration, and we recognize each component of this revenue on a quarterly basis up to the amount that would likely not be reversed. Termination Fee We have evaluated the nature of the services provided to Front Yard in exchange for the Termination Fee and have determined that such services constitute a series of distinct services that should be accounted for as a single performance obligation completed over time, which is simultaneously performed by us and consumed by Front Yard. Therefore, we recognized the Termination Fee through the Termination Date. Share-based compensation We amortize the grant date fair value of restricted stock as expense on a straight-line basis over the service period with an offsetting increase in stockholders' equity. The grant date fair value of awards with only service-based vesting conditions is determined based upon the share price on the grant date. The grant date fair value of awards with both service-based and market-based vesting conditions is calculated using a Monte Carlo simulation. We recognize share-based compensation expense related to (i) awards to employees in salaries and employee benefits and (ii) awards to Directors or non-employees in general and administrative expense in our consolidated statements of operations. Forfeitures of share-based awards are recognized as they occur. Short-term investments Short-term investments include certificates of deposit with original maturities greater than three months and remaining maturities less than one year. Treasury stock We account for repurchased common stock under the cost method and include such treasury stock as a component of total stockholders’ equity. We have repurchased shares of our common stock (i) under our Board approval to repurchase up to $300.0 million in shares of our common stock and (ii) upon our withholding of shares of our common stock to satisfy tax withholding obligations in connection with the vesting of our restricted stock. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations On August 13, 2020, AAMC and Front Yard entered into Termination and Transition Agreement, pursuant to which they agreed to effectively internalize the asset management function of Front Yard. Pursuant to the agreement, Front Yard has or will acquire the equity interests of AAMC's Indian subsidiary, the equity interests of AAMC's Cayman Islands subsidiary, the right to solicit and hire designated AAMC employees that currently oversee the management of Front Yard's business and other assets of AAMC that are used in connection with the operation of Front Yard's business. On December 31, 2020, in connection with the Termination Agreement, the company completed the assignment of our lease in Charlotte, North Carolina to Front Yard. Additionally, on December 31, 2020, we completed the sale of our Cayman Islands subsidiary. The carrying value of major classes of assets and liabilities related to our discontinued operations that constitute the Disposal Group at December 31, 2020 and December 31, 2019 were as follows ($ in thousands): December 31, 2020 December 31, 2019 Current assets held for sale: Cash and cash equivalents $ 184 $ 1,059 Short-term investments — 517 Prepaid expenses and other assets 710 600 Total current assets held for sale 894 2,176 Non-current assets held for sale: Right-of-use lease assets 1,612 3,607 Other non-current assets 367 288 Total non-current assets held for sale 1,979 3,895 Total assets held for sale $ 2,873 $ 6,071 Current liabilities held for sale: Accrued salaries and employee benefits $ 910 $ 1,645 Accounts payable and accrued liabilities 300 163 Short-term lease liabilities 128 194 Total current liabilities held for sale 1,338 2,002 Non-current liabilities held for sale: Non-current lease liabilities 1,599 3,543 Total non-current liabilities held for sale 1,599 3,543 Total liabilities held for sale $ 2,937 $ 5,545 Discontinued operations includes (i) the management fee revenues generated under our asset management agreements with Front Yard, (ii) expense reimbursements from Front Yard and the underlying expenses, (iii) the results of operations of our India and Cayman Islands subsidiaries, (iv) the employment costs associated with certain individuals wholly dedicated to Front Yard and (v) the costs associated with our lease in Charlotte, North Carolina, that was assumed by Front Yard on December 31, 2020. The operating results of these items are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented and revenues and expenses directly related to Discontinued Operations were eliminated from our ongoing operations. The following table details the components comprising net income from our discontinued operations ($ in thousands): Year ended December 31, 2020 2019 Revenues from discontinued operations: Management fees from Front Yard $ 13,713 $ 14,270 Termination fee from Front Yard 46,000 — Conversion fees from Front Yard — 29 Expense reimbursements from Front Yard 2,867 1,463 Total revenues from discontinued operations 62,580 15,762 Expenses from discontinued operations: Salaries and employee benefits 5,592 5,662 Legal and professional fees 256 167 General and administrative 1,521 1,813 Total expenses from discontinued operations 7,369 7,642 Other income (loss) from discontinued operations: Other income (loss) 20 (3) Total other income (loss) from discontinued operations 20 (3) Net income from discontinued operations before income taxes 55,231 8,117 Loss on disposal of discontinued operations before income taxes 102 — Income tax expense 588 173 Net income from discontinued operations $ 54,541 $ 7,944 The following table details cash flow information related to our discontinued operations for the periods indicated ($ in thousands): Year ended December 31, 2020 2019 Total operating cash flows from discontinued operations $ 37,798 $ 8,183 Total investing cash flows from (used in) discontinued operations 3,643 (23) Total financing cash flows (used in) from discontinued operations (1,010) (84) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following table sets forth the carrying amount and fair value of the Company's financial assets by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 Carrying Amount Quoted Prices in Active Markets Observable Inputs Other Than Level 1 Prices Unobservable Inputs December 31, 2020 Recurring basis (assets) Front Yard common stock $ 47,355 $ 47,355 $ — $ — December 31, 2019 Recurring basis (assets) Front Yard common stock $ 20,046 $ 20,046 $ — $ — We did not transfer any assets from one level to another level during the years ended December 31, 2020 or 2019. The fair value of our Front Yard common stock is based on unadjusted quoted market prices from active markets. At December 31, 2020 and 2019, we held 2,923,166 and 1,624,465 shares of Front Yard's common stock, respectively. At December 31, 2020 and 2019, this represented approximately 4.9% and 3.0% of Front Yard's then-outstanding common stock at each date. All of our shares of Front Yard's common stock held at December 31, 2019 were acquired in open market transactions. On December 31, 2020, we received 1,298,701 shares of Front Yard's common stock in connection with the transactions contemplated in the Termination Agreement with Front Yard. For further information, please refer to Note 1 . The following table presents the cost and fair value of our holdings in Front Yard's common stock as of December 31, 2020 and 2019 ($ in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Front Yard common stock $ 41,635 $ 5,720 $ — $ 47,355 December 31, 2019 Front Yard common stock $ 20,596 $ — $ (550) $ 20,046 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases We currently occupy office space under operating leases in Christiansted, U.S. Virgin Islands, and Bengaluru, India. As of December 31, 2020 and December 31, 2019, our weighted average remaining lease term, including applicable extensions, was 7.5 years and 9.1 years, respectively, and we applied a discount rate of 7.0% and 8.4%, respectively, to our office leases. We determine the discount rate for each lease to be either the discount rate stated in the lease agreement or our estimated rate that we would be charged to finance real estate assets. During the years ended December 31, 2020 and December 31, 2019, we recognized rent expense of $0.7 million and $0.5 million, respectively, related to long-term operating leases and $0.1 million and $0.2 million related to short-term operating leases, respectively. We include rent expense as a component of general and administrative expenses in the consolidated statements of operations. We had no finance leases during the years ended December 31, 2020 and December 31, 2019. The following table presents a maturity analysis of our operating leases as of December 31, 2020 ($ in thousands): Operating Lease Liabilities 2021 $ 363 2022 380 2023 399 2024 412 2025 426 Thereafter 1,141 Total lease payments 3,121 Less: interest 719 Lease liabilities $ 2,402 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Litigation, claims and assessments From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. Set forth below is a summary of material legal proceedings to which we are a party as of December 31, 2020: Erbey Holding Corporation et al. v. Blackrock Management Inc., et al. On April 12, 2018, a partial stockholder derivative action was filed in the Superior Court of the Virgin Islands, Division of St. Croix under the caption Erbey Holding Corporation, et al. v. Blackrock Financial Management Inc., et al. The action was filed by Erbey Holding Corporation (“Erbey Holding”), John R. Erbey Family Limited Partnership (“JREFLP”), by its general partner Jupiter Capital, Inc., Salt Pond Holdings, LLC (“Salt Pond”), Munus, L.P. (“Munus”), Carisma Trust (“Carisma”), by its trustee, Venia, LLC, and Tribue Limited Partnership (collectively, the “Plaintiffs”) each on its own behalf and Salt Pond and Carisma derivatively on behalf of AAMC. The action was filed against Blackrock Financial Management, Inc., Blackrock Investment Management, LLC, Blackrock Investments, LLC, Blackrock Capital Management, Inc., Blackrock, Inc. (collectively, “Blackrock”), Pacific Investment Management Company LLC, PIMCO Investments LLC (collectively, “PIMCO”) and John and Jane Does 1-10 (collectively with Blackrock and PIMCO, the “Defendants”). The action alleges a conspiracy by Blackrock and PIMCO to harm Ocwen and AAMC and certain of their subsidiaries, affiliates and related companies and to extract enormous profits at the expense of Ocwen and AAMC by attempting to damage their operations, business relationships and reputations. The complaint alleges that Defendants’ conspiratorial activities, which included short-selling activities, were designed to destroy Ocwen and AAMC, and that the Plaintiffs (including AAMC) suffered significant injury, including but not limited to lost value of their stock and/or stock holdings. The action seeks, among other things, an award of monetary damages to AAMC, including treble damages under Section 605, Title IV of the Virgin Islands Code related to the Criminally Influenced and Corrupt Organizations Act, punitive damages and an award of attorney’s and other fees and expenses. Defendants have moved to dismiss the first amended verified complaint. Plaintiffs and AAMC have moved for leave to file a second amended verified complaint to include AAMC as a direct plaintiff, rather than as a derivative party. On March 27, 2019, the Court held oral argument on Defendants' motions to dismiss the first amended verified complaint and Plaintiffs' motion for leave to file the second amended verified complaint. As of the date of this letter, the Court has not yet decided the pending motions. At this time, we are not able to predict the ultimate outcome of this matter, nor can we estimate the range of possible damages to be awarded to AAMC, if any. We have determined that there is no contingent liability related to this matter for AAMC. Altisource Asset Management Corporation v. Luxor Capital Group, LP, et al. On January 27, 2020, AAMC filed a complaint for declaratory judgment relief in the Superior Court of the Virgin Islands, Division of St. Croix, against Luxor Capital Group, LP and certain of its funds and managed accounts (collectively, “Luxor”) regarding AAMC’s redemption obligations under the Certificate of Designations (the “Certificate”) of AAMC’s Series A Convertible Preferred Stock (the “Series A Shares”). Under the Certificate, holders of the Series A Shares are permitted on March 15, 2020 and on each successive five-year anniversary of March 15, 2020 to request AAMC, upon not less than 15 nor more than 30 business days’ prior notice, to redeem all but not less than all of their Series A Shares out of legally available funds. AAMC seeks a declaration that AAMC is not required to redeem any of Luxor’s Series A Shares on a redemption date if AAMC does not have legally available funds to redeem all of Luxor’s Series A Shares on such redemption date. Luxor has removed the action to the U.S District Court for the Virgin Islands, and, on March 24, 2020, AAMC moved to remand the action back to the Superior Court of the Virgin Islands, Division of St. Croix. That motion is fully briefed and pending decision. On May 15, 2020, Luxor moved to dismiss AAMC's declaratory judgment complaint. That motion has been fully briefed and submitted to the Court as of July 29, 2020. Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation On February 3, 2020, Luxor filed a complaint in the Supreme Court of the State of New York, County of New York, against AAMC for breach of contract, specific performance, unjust enrichment, and related damages and expenses. The complaint alleges that AAMC’s position that it would not redeem any of Luxor’s Series A Shares on the March 15, 2020 redemption date is a material breach of AAMC’s redemption obligations under the Certificate. Luxor seeks an order requiring AAMC to redeem its Series A Shares, recovery of no less than $144,212,000 in damages, which is equal to the amount Luxor would receive if AAMC redeemed all of Luxor’s Series A Shares at the redemption price of $1,000 per share set forth in the Certificate, as well as payment of its costs and expenses in the lawsuit. In the alternative, Luxor seeks a return of its initial purchase price of $150,000,000 for the Series A Shares, as well as payment of its costs and expenses in the lawsuit. On May 25, 2020, Luxor's complaint was amended to add Putnam Equity Spectrum Fund and Putnam Capital Spectrum Fund (collectively, “Putnam”), which also invested in the Series A Shares, as plaintiffs. Putnam holds 81,800 Series A Shares. Collectively, Luxor and Putnam seek a recovery of no less than $226,012,000 in damages, which is equal to the amount Luxor and Putnam would receive if AAMC redeemed all of Luxor’s and Putnam’s Series A Shares at the redemption price of $1,000 per share set forth in the Certificate, as well as payment of their costs and expenses in the lawsuit. In the alternative, Luxor and Putnam seek a return of the initial purchase price of $231,800,000 for the Series A Shares, as well as payment of their costs and expenses in the lawsuit. On June 12, 2020, AAMC moved to dismiss the Amended Complaint in favor of AAMC's first-filed declaratory judgment action in the U.S. Virgin Islands. On August 4, 2020, the court denied AAMC’s motion to dismiss and the case is proceeding accordingly. AAMC is currently considering whether to appeal the court’s decision. For information regarding legal proceedings that arose subsequent to December 31, 2020, refer to Note 13 . COVID-19 Pandemic Due to the current COVID-19 pandemic in the United States and globally, our business, our employees and the economy as a whole could be adversely impacted. The magnitude and duration of the COVID-19 pandemic and its impact on our cash flows and future results of operations could potentially be significant and will largely depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the COVID-19 pandemic, the success of actions taken to contain or treat the pandemic, and reactions by consumers, companies, governmental entities and capital markets. Although COVID-19 to date has not adversely impacted our revenues, the prolonged duration and impact of the COVID-19 on any our new businesses in development or implementation, could cause or result in office closures and other related disruptions that could materially adversely impact our business operations and impact our financial performance. |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related-party Transactions | 7. Related-party Transactions Asset management agreement with Front Yard Pursuant to the Amended AMA, we designed and implemented Front Yard's business strategy, administered its business activities and day-to-day operations, and provided corporate governance services, subject to oversight by Front Yard's Board of Directors. We were responsible for, among other duties: (1) performing and administering certain of Front Yard's day-to-day operations; (2) defining investment criteria in Front Yard's investment policy in cooperation with its Board of Directors; (3) sourcing, analyzing and executing asset acquisitions, including the related financing activities; (4) overseeing Front Yard's renovation, leasing and property management of its SFR properties; (5) analyzing and executing sales of certain rental properties, REO properties and residential mortgage loans; (6) performing asset management duties and (7) performing corporate governance and other management functions, including financial, accounting and tax management services. Through December 31, 2020, we provided Front Yard with a management team and support personnel with substantial experience in the acquisition and management of residential properties. Our management also has significant corporate governance experience that enabled us to manage Front Yard's business and organizational structure efficiently. Under the Amended AMA, we had agreed not to provide the same or substantially similar services without the prior written consent of Front Yard's Board of Directors to any business or entity competing against Front Yard in (a) the acquisition or sale of SFR and/or REO properties, non-performing and re-performing mortgage loans or other similar assets; (b) the carrying on of an SFR business or (c) any other activity in which Front Yard engages. However, following the execution of the Termination Agreement, we are entitled to provide advisory or other services to businesses or entities in such competitive activities without Front Yard's prior consent. On August 13, 2020, AAMC and Front Yard entered into the Termination Agreement, pursuant to which they agreed to terminate the Amended AMA, thereby effectively internalizing the asset management function of Front Yard in exchange for payment of the Termination Fee and other consideration to AAMC. On December 31, 2020, AAMC and Front Yard completed the transition contemplated by the Termination and Transition Agreement. For a description of the Termination Agreement and its key terms, please see Note 1 . Terms of the Amended AMA We and Front Yard entered into the Amended AMA on May 7, 2019 (the “Effective Date”). The Amended AMA amended and restated, in its entirety, the Former AMA. The Amended AMA had an initial term of five years and would renew automatically each year thereafter for an additional one-year term, subject in each case to the termination provisions further described below. The Amended AMA provided for a management fee structure that provides AAMC with a quarterly Base Management Fee and a potential annual Incentive Fee, each of which were dependent upon Front Yard's performance and were subject to potential downward adjustments and an aggregate fee cap. The Base Management Fee under the Amended AMA was subject to a quarterly minimum of $3,584,000. The Amended AMA also required that the Base Management Fee would increase commencing after Front Yard’s per share Adjusted AFFO (as defined in the Amended AMA) reaching $0.15 (“Additional Base Fees”). To date, we have earned no Additional Base Fees or Incentive Fees under the Amended AMA. Due to the termination of the Amended AMA pursuant to the Termination Agreement, and the completion of the transition period, we will no longer receive a Base Management Fee under the Amended AMA. We were responsible for all of our own costs and expenses other than the expenses related to compensation of Front Yard’s dedicated general counsel and, beginning in January 2020, certain specified employees who provided direct property management services to Front Yard. Front Yard and its subsidiaries paid their own costs and expenses, and, to the extent such Front Yard expenses were initially paid by us, Front Yard was and is required to reimburse us for such reasonable costs and expenses. Terms of the Former AMA On March 31, 2015, we entered into the Former AMA with Front Yard. The Former AMA, which became effective on April 1, 2015, provided for the following management fee structure: • Base Management Fee . We were entitled to a quarterly base management fee equal to 1.5% of the product of (i) Front Yard's average invested capital (as defined in the Former AMA) for the quarter multiplied by (ii) 0.25, while it had fewer than 2,500 SFR properties actually rented (“Rental Properties”). The base management fee percentage increased to 1.75% of average invested capital while Front Yard had between 2,500 and 4,499 Rental Properties and increased to 2.0% of average invested capital while it had 4,500 or more Rental Properties. Because Front Yard has more than 4,500 Rental Properties, we were entitled to receive a base management fee of 2.0% of Front Yard’s invested capital under the Former AMA during the years ended December 31, 2019, 2018 and 2017; • Incentive Management Fee . We were entitled to a quarterly incentive management fee equal to 20% of the amount by which Front Yard's return on invested capital (based on AFFO, defined as net income attributable to holders of common stock calculated in accordance with GAAP plus real estate depreciation expense minus recurring capital expenditures on all real estate assets owned by Front Yard) exceeded an annual hurdle return rate of between 7.0% and 8.25% (or 1.75% and 2.06% per quarter), depending on the 10-year treasury rate. To the extent Front Yard had an aggregate shortfall in its return rate over the previous seven quarters, that aggregate return rate shortfall was added to the normal quarterly return hurdle for the next quarter before we were entitled to an incentive management fee. The incentive management fee increased to 22.5% while Front Yard had between 2,500 and 4,499 Rental Properties and increased to 25% while it had 4,500 or more Rental Properties. No incentive management fee under the Former AMA was earned by us because Front Yard's return on invested capital (as defined in the Former AMA) was below the cumulative required hurdle rate; and • Conversion Fee . We were entitled to a quarterly conversion fee equal to 1.5% of the market value of assets converted into leased single-family homes by Front Yard for the first time during the applicable quarter. Under the Former AMA, Front Yard reimbursed us for the compensation and benefits of the General Counsel dedicated to Front Yard and certain operating expenses incurred on Front Yard's behalf. |
Incentive Compensation and Shar
Incentive Compensation and Share-based Payments | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Compensation and Share-based Payments | 8. Incentive Compensation and Share-based Payments Long-term incentive compensation Our officers and employees participate in an annual non-equity incentive program whereby they are eligible for incentive cash payments based on a percentage of their annual base salary. Our officers generally have a target annual non-equity incentive payment percentage that ranges from 50% to 200% of base salary. The officer's actual incentive payment for the year is determined by (i) the Company's performance versus the objectives established by our Board of Directors (80%) and (ii) a performance appraisal (20%). Share-based Payments Certain executive officers and employees have and will receive grants of stock options and/or restricted stock under the 2012 and 2020 Equity Incentive Plans, collectively (the "Equity Incentive Plans"). The Equity Incentive Plans also allow for the grant of performance awards and other awards such as purchase rights, equity appreciation rights, shares of common stock awarded without restrictions or conditions, convertible securities, exchangeable securities or other rights convertible or exchangeable into shares of common stock, as the Compensation Committee in its discretion may determine. 2012 Special Equity Incentive Plan A special grant of stock options and restricted stock was made to certain employees of Altisource Portfolio Solutions N.A. (“ASPS”) related to our separation from ASPS under the 2012 Special Equity Incentive Plan (the “2012 Special Plan”). We included no share-based compensation in our consolidated financial statements for the portion of these grants made to ASPS employees. The shares of restricted stock became fully vested and were issued during 2017. Dividends received on restricted stock are forfeitable and are accumulated until the time of vesting at the same rate and on the same date as on shares of common stock. Upon the vesting of stock options and restricted stock, we may withhold up to the statutory minimum to satisfy the resulting employee tax obligation. Stock options During the year ended December 31, 2020, we recorded $0.2 million of compensation expense related to our grants of stock options. We recorded no compensation expense in our financial statements related to grants of stock options for the year ended December 31, 2019. The following table sets forth the activity of our outstanding options: Number of Options Weighted Average Exercise Price per Share December 31, 2018 15,506 $ 2.75 Exercised (1) (250) 1.51 December 31, 2019 15,256 2.77 Granted (2) 60,000 13.11 Exercised (1) (8,031) 1.66 December 31, 2020 67,225 $ 12.13 _____________ (1) The intrinsic value of stock options exercised during the years ended December 31, 2020 and 2019 was $0.1 million, and a nominal amount, respectively. (2) The stock options had a weighted average grant date fair value of $10.61. The stock options have an exercise price of $13.11 and consist of two tranches that will vest based on the satisfaction of certain performance criteria and time-based service requirements. The first tranche includes 40,000 stock options and will vest in three allotments beginning on the date the share price equals or exceeds 400% of the exercise price (the “First Performance Goal”). Upon satisfaction of the First Performance Goal, 13,333 options will vest and become exercisable immediately, with the remaining 26,667 options vesting in equal installments on the first and second anniversary of the achievement of the First Performance Goal, subject to forfeiture or expiration. The second tranche of 20,000 stock options will vest in three allotments beginning on the date the share price equals or exceeds 800% of the exercise price of the options (the “Second Performance Goal”). Upon satisfaction of the Second Performance Goal, 6,666 options will vest and become exercisable immediately, with the remaining 13,334 options vesting in equal installments on the first and second anniversary of the Second Performance goal, subject to forfeiture or expiration. All unvested options shall expire on the tenth anniversary of the January 30, 2020 grant date. As of December 31, 2020, we had 67,225 outstanding options issued under all of our share-based compensation plans or as inducement awards, with a weighted average exercise price of $12.13, weighted average remaining life of 8.2 years and intrinsic value of $0.8 million. We have 7,225 options exercisable as of December 31, 2020 with a weighted average exercise price of $4.01, weighted average remaining life of 1.1 years, and intrinsic value of $0.1 million. Of these exercisable options, none had an exercise price higher than the market price of our common stock as of December 31, 2020. We calculated the grant date fair value of stock options granted in 2020 using a Monte Carlo simulation and amortize the resulting compensation expense over the respective service period. The fair value of stock options granted during the period indicated using the following assumptions: Year ended December 31, 2020 Risk-free interest rate (1) 1.56 % Common stock dividend yield (2) — % Expected volatility (3) 98.30 % _____________ (1) Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the stock option grants (2) Based on the Company's history of not declaring a dividend on shares of common stock (3) Based on our historical stock price volatility Restricted stock During the year ended December 31, 2020, we granted 70,000 shares of service-based restricted stock to members of management with a weighted average grant date value per share of $13.99. These grants of service-based restricted stock awards were granted either as inducement awards or under our Equity Incentive Plans. The restricted stock will vest in three equal annual installments based on the grant date(s), subject to forfeiture or acceleration. During the year ended December 31, 2019, we granted 60,329 shares of service-based restricted stock to members of management with a weighted average grant date fair value per share of $26.68 under our Equity Incentive Plans. The restricted stock will vest in three equal annual installments on each of January 23, 2020, 2021 and 2022, subject to forfeiture or acceleration. Restricted stock granted in 2015 and 2014 vests based on achievement of the following market-based performance hurdles (all of which have been met) and vesting schedules, subject to forfeiture or acceleration: • Twenty-five percent (25%) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty percent (20%) over the market value on the date of the grant and (ii) the market value is at least double the market value on the date of the grant; • Fifty percent (50%) of the grant will vest in accordance with the vesting schedule set forth below if the market value of our stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty-two and a half percent (22.5%) over the market value on the date of the grant and (ii) the market value is at least triple the market value on the date of the grant and • Twenty-five percent (25%) of the grant will vest in accordance with the vesting schedule set forth below if the market value of Company stock meets both of the following conditions: (i) the market value has realized a compounded annual gain of at least twenty-five percent (25%) over the market value on the date of the grant and (ii) the market value is at least quadruple the market value on the date of the grant. • After the performance hurdles have been achieved, 25% of the restricted stock vested on the first anniversary of the date that the performance hurdle for that tranche was met. The remaining 75% of that tranche either (i) vested on the second anniversary of the date that the performance hurdle was met for certain grants or (ii) will continue to vest ratably over the second, third and fourth anniversaries of the date that the performance hurdle was met for certain grants. Additionally, our Directors each receive annual grants of restricted stock equal to $60,000 based on the market value of our common stock at the time of the annual stockholders meeting. This restricted stock vests and is issued after a one-year service period subject to each Director attending at least 75% of the Board and committee meetings. No dividends are paid on the shares until the award is issued. During the years ended December 31, 2020 and 2019, we granted 8,622 and 12,693 shares of stock, respectively, pursuant to our Equity Incentive Plans with a weighted average grant date fair value per share of $20.87 and $14.18, respectively. We recorded $1.7 million, and $2.4 million of compensation expense related to these grants for the years ended December 31, 2020, and 2019, respectively. As of December 31, 2020 and 2019, we had $1.0 million and $1.2 million, respectively, of total unrecognized share-based compensation cost to be recognized over a weighted average remaining estimated term of 0.9 years and 0.8 years, respectively. The following table sets forth the activity of our restricted stock: Number of Shares Weighted Average Grant Date Fair Value December 31, 2018 72,923 $ 142.03 Granted 73,022 24.51 Vested (1) (34,188) 178.76 December 31, 2019 111,757 54.18 Granted 78,622 14.75 Vested (1) (60,999) 66.70 December 31, 2020 129,380 $ 24.32 _____________ (1) The vesting date fair value of restricted stock that vested during the years ended December 31, 2020, 2019 and 2018 was $1.1 million, $0.9 million, and $2.1 million, respectively. The following table sets forth the number of shares of common stock reserved for future issuance. We may issue new shares or issue shares from treasury shares upon the exercise of stock options or the vesting of restricted stock. December 31, 2020 Stock options outstanding 67,225 Possible future issuances under share-based compensation plans 168,820 236,045 As of December 31, 2020, we had 2,033,793 remaining shares of common stock authorized to be issued under our charter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes We are domiciled in the USVI and are obligated to pay taxes to the USVI on our income. We applied for tax benefits from the USVI Economic Development Commission and received our certificate of benefits (“the EDC Certificate”), effective as of February 1, 2013. Pursuant to the EDC Certificate, so long as we comply its provisions, we will receive a 90% tax reduction on our USVI-sourced income until 2043. For the year ended December 31, 2020, we generated taxable income in the USVI. For the years ended December 31, 2020, and 2019, in addition to the management fees from Front Yard (which represent eligible income under the EDC Certificate), AAMC also had income on the Front Yard common stock that it owns, as well as internally-sourced revenues from its Cayman Islands subsidiary, both of which are not eligible for the 90% tax reduction. Beginning on January 1, 2017, AAMC US, Inc., a domestic U.S. corporation and wholly-owned subsidiary, began operations. This entity is based entirely in the mainland U.S. and is subject to U.S. federal and state corporate income tax. The following table sets forth the components of income (loss) from continuing operations before income taxes: Year ended December 31, 2020 2019 U.S. Virgin Islands $ (15,841) $ (7,114) Other 1,890 (3,278) Income (loss) before income taxes $ (13,951) $ (10,392) The provision (benefit) for income taxes from continuing operations is summarized as: Year ended December 31, 2020 2019 Current Federal $ (1,002) $ 170 State — 16 International (183) — Total current tax (benefit) expense (1,185) 186 Deferred Federal 1,420 776 State — — International 534 (797) Total deferred tax expense (benefit) 1,954 (21) Total tax expense $ 769 $ 165 The following table sets forth the components of our total deferred tax assets: December 31, 2020 December 31, 2019 Deferred tax assets: Stock compensation $ 64 $ 114 Accrued expenses 171 669 Net operating losses (1) 285 357 Lease liabilities 491 955 Other 44 48 Gross deferred tax assets 1,055 2,143 Deferred tax liability: Right-of-use lease assets 459 922 Front Yard common stock 1,547 42 Depreciation 2 4 Other 5 — Gross deferred tax liabilities 2,013 968 Net deferred tax (liability) asset before valuation allowance (958) 1,175 Valuation allowance (69) (491) Deferred tax (liability) asset, net $ (1,027) $ 684 _____________ (1) Net operating loss (“NOL”) carry-forwards for tax years prior to 2018 expire in 2037. Beginning with 2018, NOLs are carried forward indefinitely. The change in deferred tax assets is included in changes in other non-current assets in the consolidated statement of cash flows. Significant factors contributing to the decrease in our valuation allowance in 2020 are decreases in the temporary differences attributable to our investment in Front Yard common stock, partially offset by tax losses in the USVI. ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is "more likely than not." Realization of the future tax benefits is dependent on the Company's ability to generate sufficient taxable income within the carryforward period. AAMC has historically been in a three-year cumulative loss position. As such, a full valuation allowance against the EDC deferred tax assets and liabilities was recorded as of December 31, 2019. With the recognition of the Termination Fee payments as income in 2020, AAMC is no longer in a cumulative three-year loss position for GAAP and tax purposes. However, we believe that it is more likely than not that the company will not realize the benefit of its net deferred tax assets. As such, the EDC deferred tax asset was fully recorded with a full valuation allowance in 2020. The valuation allowance decreased by $422 thousand during the year ended December 31, 2020. The following table sets forth the reconciliation of the statutory USVI income tax rate from continuing operations to our effective income tax rate: Year ended December 31, 2020 2019 U.S. Virgin Islands income tax rate 23.1 % 23.1 % State and local income tax rates (0.1) (0.2) EDC benefits in the USVI (33.0) (26.9) Foreign tax rate differential (0.2) (0.2) Permanent and other (1.5) (0.2) Share-based compensation (0.5) (1.1) Valuation allowance (1.1) (1.7) Other Adjustments / Rate difference on US NOL carryback 7.9 5.6 Effective income tax rate (5.4) % (1.6) % During the tax years ended December 31, 2020 and 2019, we recognized no interest or penalties associated with unrecognized tax benefits. As of December 31, 2020 and 2019, we had accrued no unrecognized tax benefits or associated interest and penalties. AAMC believes that the tax positions taken in the AAMC tax returns satisfy the more-likely-than-not threshold for benefit recognition. Furthermore, a review of the AAMC entity trial balances suggests that AAMC has appropriately addressed the material book-tax differences. AAMC is confident that the amounts claimed (or expected to be claimed) in the tax returns reflect the largest amount of such benefits that are greater than fifty percent likely of being realized upon ultimate settlement. Accordingly, no ASC 740-10-25 liabilities have been recorded by the Company as a result of ASC 740-10-25. We remain subject to tax examination in the USVI for tax years 2017 to 2020 and in the United States for tax years 2017 to 2020. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The following table sets forth the components of diluted loss per share (in thousands, except share and per share amounts): Year ended December 31, 2020 2019 Numerator Continuing operations: Net loss $ (14,720) $ (10,557) Amortization of preferred stock issuance costs (42) (206) Numerator for continuing operations for basic and diluted EPS - net loss attributable to common stockholders $ (14,762) $ (10,763) Discontinued operations: Numerator for basic and diluted EPS from discontinued operations - net gain from discontinued operations $ 54,541 7,944 Total: Net income (loss) $ 39,821 $ (2,613) Amortization of preferred stock issuance costs (42) (206) Numerator for basic and diluted EPS - net income (loss) attributable to common stockholders 39,779 (2,819) Denominator Weighted average common stock outstanding – basic 1,631,326 1,589,952 Weighted average common stock outstanding – diluted 1,631,326 1,589,952 Net earnings (loss) per share of common stock – basic: Net loss per share from continuing operations - basic $ (9.05) $ (6.77) Net earnings per share from discontinued operations - basic 33.43 5.00 Net earnings (loss) per basic common share $ 24.38 $ (1.77) Net earnings (loss) per share of common stock – diluted: Net loss per share from continuing operations - diluted $ (9.05) $ (6.77) Net earnings per share from discontinued operations - diluted 33.43 5.00 Net earnings (loss) per diluted common share $ 24.38 $ (1.77) We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated, as the Company had a net loss from continuing operations for each period presented ($ in thousands): Year ended December 31, 2020 2019 Numerator Amortization of preferred stock issuance costs $ 42 $ 206 Denominator Stock options 7,609 12,860 Restricted stock 67,616 26,575 Preferred stock, if converted 200,000 200,000 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information Our primary business is to provide asset management and certain corporate governance services to institutional investors. Because substantially all of our revenue was derived from the services we provided to Front Yard, we operate as a single segment focused on providing asset management and corporate governance services. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 12. Quarterly Financial Information (Unaudited) The following tables set forth our quarterly financial information (unaudited, $ in thousands except per share amounts): 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total income (loss) from continuing operations $ (5,654) $ (10,212) $ (3,089) $ 4,235 Total income from discontinued operations 1,897 2,377 14,843 35,424 Net income (loss) $ (3,757) $ (7,835) $ 11,754 $ 39,659 Earnings (loss) per share - basic Continuing operations - basic $ (3.52) $ (6.27) $ (1.89) $ 2.57 Discontinued operations - basic 1.17 1.46 9.09 21.49 Earnings (loss) per basic common share $ (2.35) $ (4.81) $ 7.20 $ 24.06 Earnings (loss) per share - diluted Continuing operations - diluted $ (3.52) $ (6.27) $ (1.89) $ 2.17 Discontinued operations - diluted 1.17 1.46 9.09 18.18 Earnings (loss) per diluted common share $ (2.35) $ (4.81) $ 7.20 $ 20.35 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total income (loss) from continuing operations (2,408) 1,016 (5,467) (3,698) Total income from discontinued operations 1,568 2,273 1,944 2,159 Net income (loss) (840) 3,289 (3,523) (1,539) Earnings (loss) per share - basic Continuing operations - basic $ (1.55) $ 0.61 $ (3.47) $ (2.35) Discontinued operations - basic 0.99 1.43 1.22 1.35 Earnings (loss) per basic common share $ (0.56) $ 2.04 $ (2.25) $ (1.00) Earnings (loss) per share - diluted Continuing operations - diluted $ (1.55) $ 0.56 $ (3.47) $ (2.35) Discontinued operations - diluted 0.99 1.25 1.22 1.35 Earnings (loss) per diluted common share $ (0.56) $ 1.81 $ (2.25) $ (1.00) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Management has evaluated the impact of all events subsequent to December 31, 2020 and through the issuance of these consolidated financial statements. Management has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements, except as follows: Sale of Indian Subsidiary in Connection with Termination Agreement On January 1, 2021 we completed the sale of our India subsidiary, River Business Solutions Private Limited, for aggregate consideration of $8,200,000. The sale was in accordance with the terms set forth in the Termination Agreement. For additional detail of the Termination Agreement, refer to Note 1 . Acquisition of Indian Subsidiary in Connection with Termination Agreement On January 1, 2021 we completed the acquisition of Front Yard’s India subsidiary, Front Yard Business Solutions Private Limited, for a nominal amount. The acquisition was in accordance with the terms set forth in the Termination Agreement. The acquisition of this subsidiary will be accounted for as an asset acquisition. For additional detail, refer to Note 1 . Settlement of Preferred Shares On February 17, 2021, the Company entered into a settlement agreement dated as of February 17, 2021 (the “Settlement Agreement”) with Putnam Focused Equity Fund, a series of Putnam Funds Trust, as successor in interest to each of Putnam Equity Spectrum Fund and Putnam Capital Spectrum Fund, each a series of Putnam Funds Trust (collectively, “Putnam”), one of the plaintiffs in the litigation related to the Company’s Series A Convertible Preferred Stock. The Company agreed to exchange all 81,800 of the Series A Shares held by Putnam for 288,283 shares of the Company's common stock. This settlement will increase the number of shares of our common stock outstanding by 288,283 shares for basic EPS calculations. Because the Series A Shares are included in the attached financial statements on an if-converted basis for diluted EPS calculations at an exchange rate of 0.8 shares of common stock per Series A Share, the settlement will increase the number of shares of our common stock outstanding by 222,843 shares which will result in our EPS calculations in future filings being diluted relative to the subject calculation. For additional detail, please refer to the company's Form 8-K filed February 18, 2021. Acquisition of Assets In February 2021, we established a standard securities margin account with an independent, third-party banking institution intended to enable us to borrow funds on margin secured by the purchased securities in the account. We utilized this account to purchase $96.9 million publicly traded securities of mortgage REITs, funded with an aggregate of $68 million dollars of cash on hand and approximately $28.9 million dollars borrowed under a standard margin arrangement. The margin account is secured by the aggregate acquired securities, and will bear interest at a rate of one-month LIBOR plus 1.00%. For additional detail, please refer to the company's Form 8 -K |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All wholly owned subsidiaries are included, and all intercompany accounts and transactions have been eliminated. |
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Recently issued accounting standards | Recently issued accounting standards Adoption of recent accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”). ASU 2016-02 requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. Accounting by lessors is substantially unchanged from prior practice as lessors will continue to recognize lease revenue on a straight-line basis. The FASB has also issued multiple ASUs amending certain aspects of Topic 842. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those fiscal years. The amendments in ASU 2016-02 should be applied on a modified retrospective transition basis, and a number of practical expedients may apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. We adopted this standard as of January 1, 2019 when the standard became effective and was required to be adopted. Consistent with the standard, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to January 1, 2019. As mentioned above, the new standard provides a number of optional practical expedients in transition. We elected the “package of practical expedients,” which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity's ongoing accounting not to separate the lease and non-lease components, including common area maintenance, property taxes and insurance on our office leases that is paid along with rents. We elected the short-term lease exemption for all leases that qualify; as a result, we will not recognize right-of-use assets or lease liabilities for leases with a term of less than 12 months at inception. Upon our adoption of this standard, we recognized operating lease right-of-use assets of $2.8 million, lease liabilities of $2.8 million and a cumulative-effect adjustment to retained earnings of $(0.1) million. We have also provided the required incremental disclosures about our leasing activities on a prospective basis in Note 5 . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, which amends the guidance on measuring credit losses on financial assets held at amortized cost. ASU 2016-13, as amended, is intended to address the issue that the previous “incurred loss” methodology was restrictive for an entity's ability to record credit losses based on not yet meeting the “probable” threshold. The new language requires these assets to be valued at amortized cost presented at the net amount expected to be collected with a valuation provision. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in ASU 2016-13 should be applied on a modified retrospective transition basis. We adopted this standard as of January 1, 2020, and our adoption of the standard did not have a material impact on our consolidated financial statements. Recently issued accounting standards not yet adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. We are currently evaluating the impact of this standard. ASU 2020-04. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. These amendments are not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. ASU No. 2020-04 is effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. We will adopt this standard when LIBOR is discontinued. We are evaluating the impact the new standard will have on our consolidated financial statements and related disclosures, but do not anticipate a material impact. Recent accounting pronouncements pending adoption not discussed above or in the 2019 Form 10-K are either not applicable or will not have, or are not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. |
Cash equivalents | Cash equivalents We consider highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Consolidations | Consolidations The consolidated financial statements include the accounts of AAMC and its consolidated subsidiaries, which include the voting interest entities in which we are determined to have a controlling financial interest. Our voting interest entities consist |
Earnings per share | Earnings per share Basic earnings per share is computed by dividing net income or loss, less amortization of preferred stock issuance costs, by the weighted average common stock outstanding during the period. Diluted earnings per share is computed by dividing net income or loss by the weighted average common stock outstanding for the period plus the dilutive effect of (i) stock options and restricted stock outstanding using the treasury stock method and (ii) Series A Preferred Stock using the if-converted method. Weighted average common stock outstanding - basic excludes the impact of unvested restricted stock since dividends paid on such restricted stock are non-participating. |
Fair value of financial instruments | Fair value of financial instruments We designate fair value measurements into three levels based on the lowest level of substantive input used to make the fair value measurement. Those levels are as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Front Yard common stock | Front Yard common stock The shares of Front Yard common stock that we hold is reported at fair value based on unadjusted quoted market prices in active markets. Changes in the fair value of Front Yard common stock are recognized through net income. Our ability to sell these securities, or the price ultimately realized for these securities, depends upon the demand in the market and potential restrictions on the timing at which we may be able to sell the Front Yard common stock when desired. |
Income taxes | Income taxes Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to our judgment, we reduce a deferred tax asset by a valuation allowance if it is “more likely than not” that some or the entire deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and we recognize tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. For all temporary differences, we have considered the potential future sources of taxable income against which they may be realized. In so doing, we have taken into account temporary differences that we expect to reverse in future years and those where it is unlikely. Where it is more likely than not that there will not be potential future taxable income to offset a temporary difference, a valuation allowance has been recorded. Lastly, the Company accounts for the tax on global intangible low-taxed income (“GILTI”) as incurred and therefore has not recorded deferred taxes related to GILTI on its foreign subsidiaries. |
Leases | Leases On January 1, 2019, we adopted ASU 2016-02, including various associated updates and amendments, which together comprise the requirements for lease accounting under ASC 842. ASU 2016-02 fundamentally changes accounting for operating leases by requiring lessees to recognize a liability to make lease payments and a right-of-use asset over the term of the lease. We also adopted the “package of practical expedients,” which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We also elected the short-term lease exemption for all leases that qualify; as a result, we will not recognize right-of-use assets or lease liabilities for leases with a term of less than 12 months at inception. We lease office space under various operating leases. Our office leases are generally for terms of one |
Other non-current assets | Other non-current assets Other non-current assets includes leasehold improvements; furniture, fixtures and equipment; deferred tax assets and miscellaneous other assets. The cost basis of fixed assets is depreciated using the straight-line method over an estimated useful life of three |
Assets and liabilities held for sale | Assets and liabilities held for saleAssets and liabilities held for sale represent the disposal group held at the lower of cost or fair value less estimated costs to sell. |
Revenue recognition | Revenue recognition Under the Amended AMA, we administered certain of Front Yard's business activities and day-to-day operations and provided corporate governance services to Front Yard. Base Management Fees are earned by us ratably throughout the applicable quarter and are initially based on Front Yard's Adjusted AFFO (as defined in the Amended AMA), subject to a minimum amount and certain potential adjustments. In the event that Front Yard's performance exceeds certain hurdles, we would have been entitled to an annual Incentive Fee based on a percentage of Front Yard's earnings in excess of such hurdle, subject to certain potential adjustments. Under the Former AMA, the base management fees were earned by us ratably throughout the applicable quarter and were based on a percentage of Front Yard's average invested capital (as defined in the Former AMA). See Note 7 for further information on the asset management agreements with Front Yard. We have evaluated the nature of the services provided to Front Yard and have determined that such services constitute a series of distinct services that should be accounted for as a single performance obligation completed over time, which is simultaneously performed by us and consumed by Front Yard. Therefore, we earn management fees are ratably over the applicable fiscal period. Under both the Amended AMA and the Former AMA, we received expense reimbursements from Front Yard for the compensation and benefits of the General Counsel dedicated to Front Yard and certain operating expenses incurred on Front Yard's behalf. These expense reimbursements were earned by us at the time the underlying expense is incurred. In addition, under the Former AMA, we also received conversion fees based on a percentage of the fair value of properties that became rented for the first time in each quarter. Such conversion fees were earned by us in the quarter that the conversion to rentals occurred. We have determined that the expense reimbursements are variable consideration, and we recognize each component of this revenue on a quarterly basis up to the amount that would likely not be reversed. Termination Fee We have evaluated the nature of the services provided to Front Yard in exchange for the Termination Fee and have determined that such services constitute a series of distinct services that should be accounted for as a single performance obligation completed over time, which is simultaneously performed by us and consumed by Front Yard. Therefore, we recognized the Termination Fee through the Termination Date. |
Share-based compensation | Share-based compensation We amortize the grant date fair value of restricted stock as expense on a straight-line basis over the service period with an offsetting increase in stockholders' equity. The grant date fair value of awards with only service-based vesting conditions is determined based upon the share price on the grant date. The grant date fair value of awards with both service-based and market-based vesting conditions is calculated using a Monte Carlo simulation. We recognize share-based compensation expense related to (i) awards to employees in salaries and employee benefits and (ii) awards to Directors or non-employees in general and administrative expense in our consolidated statements of operations. Forfeitures of share-based awards are recognized as they occur. |
Short-term investments | Short-term investments Short-term investments include certificates of deposit with original maturities greater than three months and remaining maturities less than one year. |
Treasury stock | Treasury stock We account for repurchased common stock under the cost method and include such treasury stock as a component of total stockholders’ equity. We have repurchased shares of our common stock (i) under our Board approval to repurchase up to $300.0 million in shares of our common stock and (ii) upon our withholding of shares of our common stock to satisfy tax withholding obligations in connection with the vesting of our restricted stock. |
Fair value measurement | The fair value of our Front Yard common stock is based on unadjusted quoted market prices from active markets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying value of major classes of assets and liabilities related to our discontinued operations that constitute the Disposal Group at December 31, 2020 and December 31, 2019 were as follows ($ in thousands): December 31, 2020 December 31, 2019 Current assets held for sale: Cash and cash equivalents $ 184 $ 1,059 Short-term investments — 517 Prepaid expenses and other assets 710 600 Total current assets held for sale 894 2,176 Non-current assets held for sale: Right-of-use lease assets 1,612 3,607 Other non-current assets 367 288 Total non-current assets held for sale 1,979 3,895 Total assets held for sale $ 2,873 $ 6,071 Current liabilities held for sale: Accrued salaries and employee benefits $ 910 $ 1,645 Accounts payable and accrued liabilities 300 163 Short-term lease liabilities 128 194 Total current liabilities held for sale 1,338 2,002 Non-current liabilities held for sale: Non-current lease liabilities 1,599 3,543 Total non-current liabilities held for sale 1,599 3,543 Total liabilities held for sale $ 2,937 $ 5,545 Discontinued operations includes (i) the management fee revenues generated under our asset management agreements with Front Yard, (ii) expense reimbursements from Front Yard and the underlying expenses, (iii) the results of operations of our India and Cayman Islands subsidiaries, (iv) the employment costs associated with certain individuals wholly dedicated to Front Yard and (v) the costs associated with our lease in Charlotte, North Carolina, that was assumed by Front Yard on December 31, 2020. The operating results of these items are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented and revenues and expenses directly related to Discontinued Operations were eliminated from our ongoing operations. The following table details the components comprising net income from our discontinued operations ($ in thousands): Year ended December 31, 2020 2019 Revenues from discontinued operations: Management fees from Front Yard $ 13,713 $ 14,270 Termination fee from Front Yard 46,000 — Conversion fees from Front Yard — 29 Expense reimbursements from Front Yard 2,867 1,463 Total revenues from discontinued operations 62,580 15,762 Expenses from discontinued operations: Salaries and employee benefits 5,592 5,662 Legal and professional fees 256 167 General and administrative 1,521 1,813 Total expenses from discontinued operations 7,369 7,642 Other income (loss) from discontinued operations: Other income (loss) 20 (3) Total other income (loss) from discontinued operations 20 (3) Net income from discontinued operations before income taxes 55,231 8,117 Loss on disposal of discontinued operations before income taxes 102 — Income tax expense 588 173 Net income from discontinued operations $ 54,541 $ 7,944 The following table details cash flow information related to our discontinued operations for the periods indicated ($ in thousands): Year ended December 31, 2020 2019 Total operating cash flows from discontinued operations $ 37,798 $ 8,183 Total investing cash flows from (used in) discontinued operations 3,643 (23) Total financing cash flows (used in) from discontinued operations (1,010) (84) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring and nonrecurring | The following table sets forth the carrying amount and fair value of the Company's financial assets by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 Carrying Amount Quoted Prices in Active Markets Observable Inputs Other Than Level 1 Prices Unobservable Inputs December 31, 2020 Recurring basis (assets) Front Yard common stock $ 47,355 $ 47,355 $ — $ — December 31, 2019 Recurring basis (assets) Front Yard common stock $ 20,046 $ 20,046 $ — $ — |
Fair value, unrealized gains (losses) | The following table presents the cost and fair value of our holdings in Front Yard's common stock as of December 31, 2020 and 2019 ($ in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Front Yard common stock $ 41,635 $ 5,720 $ — $ 47,355 December 31, 2019 Front Yard common stock $ 20,596 $ — $ (550) $ 20,046 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, operating lease, liability, maturity | The following table presents a maturity analysis of our operating leases as of December 31, 2020 ($ in thousands): Operating Lease Liabilities 2021 $ 363 2022 380 2023 399 2024 412 2025 426 Thereafter 1,141 Total lease payments 3,121 Less: interest 719 Lease liabilities $ 2,402 |
Incentive Compensation and Sh_2
Incentive Compensation and Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table sets forth the activity of our outstanding options: Number of Options Weighted Average Exercise Price per Share December 31, 2018 15,506 $ 2.75 Exercised (1) (250) 1.51 December 31, 2019 15,256 2.77 Granted (2) 60,000 13.11 Exercised (1) (8,031) 1.66 December 31, 2020 67,225 $ 12.13 _____________ (1) The intrinsic value of stock options exercised during the years ended December 31, 2020 and 2019 was $0.1 million, and a nominal amount, respectively. (2) The stock options had a weighted average grant date fair value of $10.61. The stock options have an exercise price of $13.11 and consist of two tranches that will vest based on the satisfaction of certain performance criteria and time-based service requirements. The first tranche includes 40,000 stock options and will vest in three allotments beginning on the date the share price equals or exceeds 400% of the exercise price (the “First Performance Goal”). Upon satisfaction of the First Performance Goal, 13,333 options will vest and become exercisable immediately, with the remaining 26,667 options vesting in equal installments on the first and second anniversary of the achievement of the First Performance Goal, subject to forfeiture or expiration. The second tranche of 20,000 stock options will vest in three allotments beginning on the date the share price equals or exceeds 800% of the exercise price of the options (the “Second Performance Goal”). Upon satisfaction of the Second Performance Goal, 6,666 options will vest and become exercisable immediately, with the remaining 13,334 options vesting in equal installments on the first and second anniversary of the Second Performance goal, subject to forfeiture or expiration. All unvested options shall expire on the tenth anniversary of the January 30, 2020 grant date. |
Valuation Assumptions of Stock Options Granted | The fair value of stock options granted during the period indicated using the following assumptions: Year ended December 31, 2020 Risk-free interest rate (1) 1.56 % Common stock dividend yield (2) — % Expected volatility (3) 98.30 % _____________ (1) Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the stock option grants (2) Based on the Company's history of not declaring a dividend on shares of common stock (3) Based on our historical stock price volatility |
Schedule of Restricted Stock Activity | The following table sets forth the activity of our restricted stock: Number of Shares Weighted Average Grant Date Fair Value December 31, 2018 72,923 $ 142.03 Granted 73,022 24.51 Vested (1) (34,188) 178.76 December 31, 2019 111,757 54.18 Granted 78,622 14.75 Vested (1) (60,999) 66.70 December 31, 2020 129,380 $ 24.32 _____________ (1) The vesting date fair value of restricted stock that vested during the years ended December 31, 2020, 2019 and 2018 was $1.1 million, $0.9 million, and $2.1 million, respectively. |
Schedule of Shares Reserved for Future Issuance | The following table sets forth the number of shares of common stock reserved for future issuance. We may issue new shares or issue shares from treasury shares upon the exercise of stock options or the vesting of restricted stock. December 31, 2020 Stock options outstanding 67,225 Possible future issuances under share-based compensation plans 168,820 236,045 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax, Domestic and Foreign | The following table sets forth the components of income (loss) from continuing operations before income taxes: Year ended December 31, 2020 2019 U.S. Virgin Islands $ (15,841) $ (7,114) Other 1,890 (3,278) Income (loss) before income taxes $ (13,951) $ (10,392) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes from continuing operations is summarized as: Year ended December 31, 2020 2019 Current Federal $ (1,002) $ 170 State — 16 International (183) — Total current tax (benefit) expense (1,185) 186 Deferred Federal 1,420 776 State — — International 534 (797) Total deferred tax expense (benefit) 1,954 (21) Total tax expense $ 769 $ 165 |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the components of our total deferred tax assets: December 31, 2020 December 31, 2019 Deferred tax assets: Stock compensation $ 64 $ 114 Accrued expenses 171 669 Net operating losses (1) 285 357 Lease liabilities 491 955 Other 44 48 Gross deferred tax assets 1,055 2,143 Deferred tax liability: Right-of-use lease assets 459 922 Front Yard common stock 1,547 42 Depreciation 2 4 Other 5 — Gross deferred tax liabilities 2,013 968 Net deferred tax (liability) asset before valuation allowance (958) 1,175 Valuation allowance (69) (491) Deferred tax (liability) asset, net $ (1,027) $ 684 _____________ (1) Net operating loss (“NOL”) carry-forwards for tax years prior to 2018 expire in 2037. Beginning with 2018, NOLs are carried forward indefinitely. |
Schedule of Effective Income Tax Rate Reconciliation | The following table sets forth the reconciliation of the statutory USVI income tax rate from continuing operations to our effective income tax rate: Year ended December 31, 2020 2019 U.S. Virgin Islands income tax rate 23.1 % 23.1 % State and local income tax rates (0.1) (0.2) EDC benefits in the USVI (33.0) (26.9) Foreign tax rate differential (0.2) (0.2) Permanent and other (1.5) (0.2) Share-based compensation (0.5) (1.1) Valuation allowance (1.1) (1.7) Other Adjustments / Rate difference on US NOL carryback 7.9 5.6 Effective income tax rate (5.4) % (1.6) % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Diluted Loss Per Share | The following table sets forth the components of diluted loss per share (in thousands, except share and per share amounts): Year ended December 31, 2020 2019 Numerator Continuing operations: Net loss $ (14,720) $ (10,557) Amortization of preferred stock issuance costs (42) (206) Numerator for continuing operations for basic and diluted EPS - net loss attributable to common stockholders $ (14,762) $ (10,763) Discontinued operations: Numerator for basic and diluted EPS from discontinued operations - net gain from discontinued operations $ 54,541 7,944 Total: Net income (loss) $ 39,821 $ (2,613) Amortization of preferred stock issuance costs (42) (206) Numerator for basic and diluted EPS - net income (loss) attributable to common stockholders 39,779 (2,819) Denominator Weighted average common stock outstanding – basic 1,631,326 1,589,952 Weighted average common stock outstanding – diluted 1,631,326 1,589,952 Net earnings (loss) per share of common stock – basic: Net loss per share from continuing operations - basic $ (9.05) $ (6.77) Net earnings per share from discontinued operations - basic 33.43 5.00 Net earnings (loss) per basic common share $ 24.38 $ (1.77) Net earnings (loss) per share of common stock – diluted: Net loss per share from continuing operations - diluted $ (9.05) $ (6.77) Net earnings per share from discontinued operations - diluted 33.43 5.00 Net earnings (loss) per diluted common share $ 24.38 $ (1.77) |
Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share | We excluded the items presented below from the calculation of diluted earnings per share as they were antidilutive for the periods indicated, as the Company had a net loss from continuing operations for each period presented ($ in thousands): Year ended December 31, 2020 2019 Numerator Amortization of preferred stock issuance costs $ 42 $ 206 Denominator Stock options 7,609 12,860 Restricted stock 67,616 26,575 Preferred stock, if converted 200,000 200,000 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following tables set forth our quarterly financial information (unaudited, $ in thousands except per share amounts): 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Total income (loss) from continuing operations $ (5,654) $ (10,212) $ (3,089) $ 4,235 Total income from discontinued operations 1,897 2,377 14,843 35,424 Net income (loss) $ (3,757) $ (7,835) $ 11,754 $ 39,659 Earnings (loss) per share - basic Continuing operations - basic $ (3.52) $ (6.27) $ (1.89) $ 2.57 Discontinued operations - basic 1.17 1.46 9.09 21.49 Earnings (loss) per basic common share $ (2.35) $ (4.81) $ 7.20 $ 24.06 Earnings (loss) per share - diluted Continuing operations - diluted $ (3.52) $ (6.27) $ (1.89) $ 2.17 Discontinued operations - diluted 1.17 1.46 9.09 18.18 Earnings (loss) per diluted common share $ (2.35) $ (4.81) $ 7.20 $ 20.35 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total income (loss) from continuing operations (2,408) 1,016 (5,467) (3,698) Total income from discontinued operations 1,568 2,273 1,944 2,159 Net income (loss) (840) 3,289 (3,523) (1,539) Earnings (loss) per share - basic Continuing operations - basic $ (1.55) $ 0.61 $ (3.47) $ (2.35) Discontinued operations - basic 0.99 1.43 1.22 1.35 Earnings (loss) per basic common share $ (0.56) $ 2.04 $ (2.25) $ (1.00) Earnings (loss) per share - diluted Continuing operations - diluted $ (1.55) $ 0.56 $ (3.47) $ (2.35) Discontinued operations - diluted 0.99 1.25 1.22 1.35 Earnings (loss) per diluted common share $ (0.56) $ 1.81 $ (2.25) $ (1.00) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Dec. 31, 2020USD ($)$ / sharesshares | Aug. 17, 2020USD ($) | Aug. 13, 2020USD ($) | Feb. 03, 2020USD ($)$ / sharesshares | May 07, 2019USD ($) | Mar. 31, 2015extension | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 29, 2016series_of_preferred_stockshares | May 26, 2016$ / shares |
Organization and Basis of Presentation [Line Items] | ||||||||||||
Receivable from Front Yard | $ 3,414,000 | $ 5,014,000 | ||||||||||
Preferred stock, shares issued (in shares) | shares | 250,000 | 250,000 | 250,000 | |||||||||
Proceeds from issuance of convertible preferred stock | $ 250,000,000 | |||||||||||
Temporary equity, redemption period | 5 years | |||||||||||
Redemption price per share (in USD per share) | $ / shares | $ 1,000 | |||||||||||
Preferred stock, conversion price per share (in USD per share) | $ / shares | $ 1,250 | |||||||||||
Exchange ratio for preferred stock to common stock | 0.8 | |||||||||||
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Number of additional series of preferred stock authorized | series_of_preferred_stock | 14 | |||||||||||
Number of shares each new series of preferred stock authorizes (in shares) | shares | 1,000 | |||||||||||
Accounts payable and accrued liabilities | $ 9,152,000 | $ 1,165,000 | ||||||||||
Dividends declared and paid on preferred stock | 1,000,000 | $ 1,100,000 | ||||||||||
Right-of-use lease assets | 656,000 | 732,000 | ||||||||||
Lease liabilities | 2,402,000 | |||||||||||
Cumulative-effect adjustment to retained earnings | $ (166,578,000) | $ (207,928,000) | (207,156,000) | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Cumulative-effect adjustment to retained earnings | (77,000) | |||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Right-of-use lease assets | $ 2,800,000 | |||||||||||
Lease liabilities | 2,800,000 | |||||||||||
Common Stock | Front Yard | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Number of Front Yard shares acquired (in shares) | shares | 1,298,701 | |||||||||||
Preferred stock held (in shares) | shares | 2,923,166 | 1,624,465 | ||||||||||
Preferred Stock | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Accounts payable and accrued liabilities | $ 11,000 | $ 10,000 | ||||||||||
Retained Earnings | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Cumulative-effect adjustment to retained earnings | $ 63,426,000 | $ 23,662,000 | 26,558,000 | |||||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Cumulative-effect adjustment to retained earnings | $ (77,000) | $ (100,000) | ||||||||||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Redemption price per share (in USD per share) | $ / shares | $ 1,000 | |||||||||||
Luxor And Putnam | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | $ 231,800,000 | |||||||||||
Luxor And Putnam | Minimum | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | 226,012,000 | |||||||||||
Luxor | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | 150,000,000 | |||||||||||
Luxor | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | 150,000,000 | |||||||||||
Luxor | Minimum | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | 144,212,000 | |||||||||||
Luxor | Minimum | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Damages sought | 144,212,000 | |||||||||||
Series A Preferred Stock | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Preferred stock, liquidation preference | $ 250,000,000 | |||||||||||
Series A Preferred Stock | Putnam | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Preferred stock held (in shares) | shares | 81,800 | |||||||||||
Redeemable Preferred Stock | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Preferred stock, shares issued (in shares) | shares | 1,100 | 1,000 | ||||||||||
Asset Management Arrangement | Affiliated Entity | Front Yard | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Asset management agreement, term | 15 years | |||||||||||
Number of potential renewal extensions | extension | 2 | |||||||||||
Automatic renewal term | 5 years | |||||||||||
Amended AMA | Affiliated Entity | Front Yard | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Automatic renewal term | 1 year | |||||||||||
Related party contract term | 5 years | |||||||||||
Revenue from related parties | $ 3,584,000 | |||||||||||
Termination Agreement | Affiliated Entity | Front Yard | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Receivable from Front Yard | $ 46,000,000 | |||||||||||
Due from Front Yard | $ 15,000,000 | $ 15,000,000 | ||||||||||
Due from Front Yard, subject to conditions, restrictions, and limitations | 16,000,000 | |||||||||||
Receipt of deposit from Front Yard related to the Disposal Group | $ 3,200,000 | |||||||||||
Revenue from related parties | $ 3,600,000 | |||||||||||
Period for voting recommendations | 1 year | |||||||||||
Termination Agreement | Affiliated Entity | Front Yard | Common Stock | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Receipt of deposit from Front Yard related to the Disposal Group | 5,000,000 | |||||||||||
Termination Agreement | Affiliated Entity | Front Yard | River Business Solutions Private Limited | ||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||
Aggregate purchase price | $ 8,200,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |
Authorized amount of stock to repurchase | $ 300,000,000 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 1 year |
Property useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Operating lease, term of contract | 5 years |
Property useful life | 5 years |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets held for sale: | ||
Total current assets held for sale | $ 894 | $ 2,176 |
Non-current assets held for sale: | ||
Total non-current assets held for sale | 1,979 | 3,895 |
Current liabilities held for sale: | ||
Total current liabilities held for sale | 1,338 | 2,002 |
Non-current liabilities held for sale: | ||
Total non-current liabilities held for sale | 1,599 | 3,543 |
Held-for-Sale | ||
Current assets held for sale: | ||
Cash and cash equivalents | 184 | 1,059 |
Short-term investments | 0 | 517 |
Prepaid expenses and other assets | 710 | 600 |
Total current assets held for sale | 894 | 2,176 |
Non-current assets held for sale: | ||
Right-of-use lease assets | 1,612 | 3,607 |
Other non-current assets | 367 | 288 |
Total non-current assets held for sale | 1,979 | 3,895 |
Total assets held for sale | 2,873 | 6,071 |
Current liabilities held for sale: | ||
Accrued salaries and employee benefits | 910 | 1,645 |
Accounts payable and accrued liabilities | 300 | 163 |
Short-term lease liabilities | 128 | 194 |
Total current liabilities held for sale | 1,338 | 2,002 |
Non-current liabilities held for sale: | ||
Non-current lease liabilities | 1,599 | 3,543 |
Total non-current liabilities held for sale | 1,599 | 3,543 |
Total liabilities held for sale | $ 2,937 | $ 5,545 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other income (loss) from discontinued operations: | ||
Loss on disposal of discontinued operations before income taxes | $ 102 | $ 0 |
Income from operations related to Front Yard, net of tax | 54,643 | 7,944 |
Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 62,580 | 15,762 |
Expenses from discontinued operations: | ||
Salaries and employee benefits | 5,592 | 5,662 |
Legal and professional fees | 256 | 167 |
General and administrative | 1,521 | 1,813 |
Total expenses from discontinued operations | 7,369 | 7,642 |
Other income (loss) from discontinued operations: | ||
Total other income (loss) from discontinued operations | 20 | (3) |
Net income from discontinued operations before income taxes | 55,231 | 8,117 |
Loss on disposal of discontinued operations before income taxes | 102 | 0 |
Income tax expense | 588 | 173 |
Income from operations related to Front Yard, net of tax | 54,541 | 7,944 |
Management fees from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 13,713 | 14,270 |
Termination fee from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 46,000 | 0 |
Conversion fees from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 0 | 29 |
Expense reimbursements from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | $ 2,867 | $ 1,463 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Total operating cash flows from discontinued operations | $ 37,798 | $ 8,183 |
Total investing cash flows from (used in) discontinued operations | 3,643 | (23) |
Total financing cash flows (used in) from discontinued operations | $ (1,010) | $ (84) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | $ 47,355 | $ 20,046 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | 47,355 | 20,046 |
Fair Value Measurements, Recurring | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | 47,355 | 20,046 |
Fair Value Measurements, Recurring | Common Stock | Level 1, Quoted Prices in Active Markets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | 47,355 | 20,046 |
Fair Value Measurements, Recurring | Common Stock | Level 2, Observable Inputs Other Than Level 1 Prices | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | 0 | 0 |
Fair Value Measurements, Recurring | Common Stock | Level 3, Unobservable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - Common Stock - Front Yard - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Shares held of Front Yard (in shares) | 2,923,166 | 1,624,465 |
Investment owned, ownership percentage | 4.90% | 3.00% |
Number of Front Yard shares acquired (in shares) | 1,298,701 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock, at fair value | $ 47,355 | $ 20,046 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost | 41,635 | 20,596 |
Gross Unrealized Gains | 5,720 | 0 |
Gross Unrealized Losses | 0 | (550) |
Front Yard common stock, at fair value | $ 47,355 | $ 20,046 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 7 years 6 months | 9 years 1 month 6 days |
Operating lease, discount rate | 7.00% | 8.40% |
Operating lease cost | $ 0.7 | $ 0.5 |
Short-term lease cost | $ 0.1 | $ 0.2 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease Liabilities | |
2021 | $ 363 |
2022 | 380 |
2023 | 399 |
2024 | 412 |
2025 | 426 |
Thereafter | 1,141 |
Total lease payments | 3,121 |
Less: interest | 719 |
Lease liabilities | $ 2,402 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 03, 2020 | Jan. 27, 2020 | Mar. 31, 2014 |
Loss Contingencies [Line Items] | |||
Redemption price per share (in USD per share) | $ 1,000 | ||
Luxor | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 150,000 | ||
Minimum | Luxor | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 144,212 | ||
Altisource Asset Management Corporation v. Luxor Capital Group, LP | |||
Loss Contingencies [Line Items] | |||
Threshold period to request company to redeem shares (years) | 5 years | ||
Altisource Asset Management Corporation v. Luxor Capital Group, LP | Minimum | |||
Loss Contingencies [Line Items] | |||
Threshold number of business days to give prior notice to redeem shares (days) | 15 days | ||
Altisource Asset Management Corporation v. Luxor Capital Group, LP | Maximum | |||
Loss Contingencies [Line Items] | |||
Threshold number of business days to give prior notice to redeem shares (days) | 30 days | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | |||
Loss Contingencies [Line Items] | |||
Redemption price per share (in USD per share) | $ 1,000 | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Luxor | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 150,000 | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | Series A Preferred Stock | |||
Loss Contingencies [Line Items] | |||
Preferred stock held (in shares) | 81,800 | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Luxor And Putnam | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 231,800 | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Minimum | Luxor | |||
Loss Contingencies [Line Items] | |||
Damages sought | 144,212 | ||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Minimum | Luxor And Putnam | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 226,012 |
Related-party Transactions - Am
Related-party Transactions - Amended AMA Narrative (Details) - Front Yard - Amended AMA - Affiliated entity $ / shares in Units, $ in Thousands | May 07, 2019USD ($)$ / shares |
Related party transaction [Line Items] | |
Related party contract term | 5 years |
Automatic renewal term | 1 year |
Revenue from related parties | $ | $ 3,584 |
Additional for the quarter exceeds per share (in usd per share) | $ / shares | $ 0.15 |
Related-party Transactions - Fo
Related-party Transactions - Former AMA Narrative (Details) - Front Yard - Affiliated Entity | Apr. 01, 2015property | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related party transaction [Line Items] | |||||
Base management fee, percent of qualified average invested capital | 1.50% | ||||
Period required return rate evaluated per new agreement | 21 months | ||||
Conversion fee, percent of market value of new rental properties | 1.50% | ||||
Asset Management Fee, Threshold One | |||||
Related party transaction [Line Items] | |||||
Base management fee, percent of qualified average invested capital | 25.00% | ||||
Base management fee, number of rental properties cap | 2,500 | ||||
Incentive management fee, percent of invested capital in excess of threshold | 20.00% | ||||
Asset Management Fee, Threshold Two | |||||
Related party transaction [Line Items] | |||||
Base management fee, percent of qualified average invested capital | 1.75% | ||||
Base management fee, number of rental properties cap | 4,499 | ||||
Base management fee, number of rental properties floor | 2,500 | ||||
Incentive management fee, percent of invested capital in excess of threshold | 22.50% | ||||
Incentive management fee, number of rental properties floor | 2,500 | ||||
Incentive management fee, number of rental properties cap | 4,499 | ||||
Asset Management Fee, Threshold Three | |||||
Related party transaction [Line Items] | |||||
Base management fee, percent of qualified average invested capital | 2.00% | 2.00% | 2.00% | ||
Base management fee, number of rental properties floor | 4,500 | ||||
Incentive management fee, percent of invested capital in excess of threshold | 25.00% | ||||
Incentive management fee, number of rental properties floor | 4,500 | ||||
Management Incentive Fees | |||||
Related party transaction [Line Items] | |||||
Revenue from related parties | $ | $ 0 | ||||
Maximum | |||||
Related party transaction [Line Items] | |||||
Incentive management fee, return on invested capital, annual rate | 8.25% | ||||
Incentive management fee, return on invested capital, quarterly rate | 2.06% | ||||
Minimum | |||||
Related party transaction [Line Items] | |||||
Incentive management fee, return on invested capital, annual rate | 7.00% | ||||
Incentive management fee, return on invested capital, quarterly rate | 1.75% |
Incentive Compensation and Sh_3
Incentive Compensation and Share-based Payments - Long-Term Incentive Compensation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Weighting of Company's performance based on board of director objectives | 80.00% |
Personal evaluation weighting | 20.00% |
Minimum | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Non-equity incentive compensation percentage | 50.00% |
Maximum | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Non-equity incentive compensation percentage | 200.00% |
Incentive Compensation and Sh_4
Incentive Compensation and Share-based Payments - Stock Option Activity (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)allotment$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ | $ 200,000 | $ 0 | |
Number of Options | |||
Beginning balance (in options) | 15,256 | 15,506 | |
Granted (in options) | 60,000 | ||
Exercised (in options) | (8,031) | (250) | |
Ending balance (in options) | 67,225 | 15,256 | |
Weighted Average Exercise Price per Share | |||
Beginning balance (usd per share) | $ / shares | $ 2.77 | $ 2.75 | |
Granted (usd per share) | $ / shares | 13.11 | ||
Exercised (usd per share) | $ / shares | 1.66 | 1.51 | |
Ending balance (usd per share) | $ / shares | $ 12.13 | $ 2.77 | |
Intrinsic value of stock options exercised | $ | $ 100,000 | $ 100,000 | |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 10.61 | ||
Stock options outstanding (in shares) | 67,225 | 15,256 | 67,225 |
Stock options outstanding, weighted average exercise price (usd per share) | $ / shares | $ 12.13 | $ 2.77 | $ 12.13 |
Stock options outstanding, weighted average remaining life | 8 years 2 months 12 days | ||
Stock options outstanding, intrinsic value | $ | $ 800,000 | ||
Number of exercisable options (in options) | 7,225 | ||
Weighted average exercise price of exercisable options (usd per share) | $ / shares | $ 4.01 | ||
Weighted average remaining life of exercisable options (in years) | 1 year 1 month 6 days | ||
Intrinsic value of exercisable options | $ | $ 100,000 | ||
Vesting tranche one | |||
Number of Options | |||
Granted (in options) | 40,000 | ||
Weighted Average Exercise Price per Share | |||
Number of allotments within tranche | allotment | 3 | ||
Minimum percentage of exercise price | 400.00% | ||
Options vested upon satisfaction of performance goal (in shares) | 13,333 | ||
Options vested upon time satisfaction of first and second anniversary of performance goal (in shares) | 26,667 | ||
Vesting tranche two | |||
Number of Options | |||
Granted (in options) | 20,000 | ||
Weighted Average Exercise Price per Share | |||
Number of allotments within tranche | allotment | 3 | ||
Minimum percentage of exercise price | 800.00% | ||
Options vested upon satisfaction of performance goal (in shares) | 6,666 | ||
Options vested upon time satisfaction of first and second anniversary of performance goal (in shares) | 13,334 |
Incentive Compensation and Sh_5
Incentive Compensation and Share-based Payments - Valuation Assumptions of Stock Granted (Details) - Stock options | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |
Risk free interest rate | 1.56% |
Common stock dividend yield | 0.00% |
Expected volatility | 98.30% |
Incentive Compensation and Sh_6
Incentive Compensation and Share-based Payments - Restricted Stock Activity (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)Installment$ / sharesshares | Dec. 31, 2019USD ($)Installment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Share-based compensation | $ | $ 200,000 | $ 0 | |||
Tranche one | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Percentage of restricted stock grant | 25.00% | 25.00% | |||
Compound annual gain percentage, common stock | 20.00% | 20.00% | |||
Tranche two | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Percentage of restricted stock grant | 50.00% | 50.00% | |||
Compound annual gain percentage, common stock | 22.50% | 22.50% | |||
Tranche three | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Percentage of restricted stock grant | 25.00% | 25.00% | |||
Compound annual gain percentage, common stock | 25.00% | 25.00% | |||
Vesting tranche one | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Annual vesting percentage | 25.00% | 25.00% | |||
Vesting tranche two | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Annual vesting percentage | 75.00% | 75.00% | |||
Restricted stock | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Share-based compensation | $ | 1,700,000 | 2,400,000 | |||
Unrecognized stock compensation | $ | $ 1,000,000 | $ 1,200,000 | |||
Weighted average remaining amortization period of unamortized share based compensation (in years) | 10 months 24 days | 9 months 18 days | |||
Number of Shares | |||||
Beginning balance (shares) | shares | 111,757 | 72,923 | |||
Granted (shares) | shares | 78,622 | 73,022 | |||
Vested (shares) | shares | (60,999) | (34,188) | |||
Ending balance (shares) | shares | 129,380 | 111,757 | 72,923 | ||
Weighted Average Grant Date Fair Value | |||||
Beginning balance (usd per share) | $ / shares | $ 24.32 | $ 54.18 | $ 142.03 | ||
Granted (usd per share) | $ / shares | 14.75 | 24.51 | |||
Vested (usd per share) | $ / shares | 66.70 | 178.76 | |||
Ending balance (usd per share) | $ / shares | $ 24.32 | $ 54.18 | $ 142.03 | ||
Vesting date fair value of restricted stock that vested | $ | $ 1,100,000 | $ 900,000 | $ 2,100,000 | ||
Restricted stock | Management | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Number of annual installments | Installment | 3 | 3 | |||
Number of Shares | |||||
Granted (shares) | shares | 70,000 | 60,329 | |||
Weighted Average Grant Date Fair Value | |||||
Granted (usd per share) | $ / shares | $ 13.99 | $ 26.68 | |||
Restricted stock | Directors | |||||
Share-based compensation arrangement by share-based payment award [Line Items] | |||||
Value of restricted stock granted to directors annually | $ | $ 60,000 | ||||
Restricted stock, service period | 1 year | ||||
Director attendance requirement | 75.00% | ||||
Number of Shares | |||||
Granted (shares) | shares | 8,622 | 12,693 | |||
Weighted Average Grant Date Fair Value | |||||
Granted (usd per share) | $ / shares | $ 20.87 | $ 14.18 |
Incentive Compensation and Sh_7
Incentive Compensation and Share-based Payments - Schedule of Shares Reserved for Future Issuance (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||
Stock options outstanding (in shares) | 67,225 | 15,256 | 15,506 |
Possible future issuances under equity incentive plan (in shares) | 168,820 | ||
Common stock reserved for future issuance (in shares) | 236,045 | ||
Common stock, shares available to be issued under charter (in shares) | 2,033,793 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax exemption, percentage | 90.00% | |
Cumulative loss position, duration | 3 years | |
Decrease in valuation allowance | $ 422,000 | |
Unrecognized tax benefit, interest and penalties expensed | 0 | $ 0 |
Unrecognized tax benefit, interest and penalties accrued | $ 0 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | $ (13,951) | $ (10,392) |
U.S. Virgin Islands | ||
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | (15,841) | (7,114) |
Other | ||
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | $ 1,890 | $ (3,278) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current | ||
Federal | $ (1,002) | $ 170 |
State | 0 | 16 |
International | (183) | 0 |
Total current tax (benefit) expense | (1,185) | 186 |
Deferred | ||
Federal | 1,420 | 776 |
State | 0 | 0 |
International | 534 | (797) |
Total deferred tax expense (benefit) | 1,954 | (21) |
Income tax expense | $ 769 | $ 165 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Stock compensation | $ 64 | $ 114 |
Accrued expenses | 171 | 669 |
Net operating losses | 285 | 357 |
Lease liabilities | 491 | 955 |
Other | 44 | 48 |
Gross deferred tax assets | 1,055 | 2,143 |
Deferred tax liability: | ||
Right-of-use lease assets | 459 | 922 |
Front Yard common stock | 1,547 | 42 |
Depreciation | 2 | 4 |
Other | 5 | 0 |
Gross deferred tax liabilities | 2,013 | 968 |
Net deferred tax (liability) asset before valuation allowance | (958) | 1,175 |
Valuation allowance | (69) | (491) |
Deferred tax (liability) asset, net | $ (1,027) | |
Deferred tax (liability) asset, net | $ 684 |
Income Taxes - Rate Reconciliat
Income Taxes - Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. Virgin Islands income tax rate | 23.10% | 23.10% |
State and local income tax rates | (0.10%) | (0.20%) |
EDC benefits in the USVI | (33.00%) | (26.90%) |
Foreign tax rate differential | (0.20%) | (0.20%) |
Permanent and other | (1.50%) | (0.20%) |
Share-based compensation | (0.50%) | (1.10%) |
Valuation allowance | (1.10%) | (1.70%) |
Other Adjustments / Rate difference on US NOL carryback | 7.90% | 5.60% |
Effective income tax rate | (5.40%) | (1.60%) |
Earnings Per Share - Diluted Lo
Earnings Per Share - Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | ||||||||||
Net loss | $ (14,720) | $ (10,557) | ||||||||
Amortization of preferred stock issuance costs | (42) | (206) | ||||||||
Numerator for continuing operations for basic and diluted EPS - net loss attributable to common stockholders | (14,762) | (10,763) | ||||||||
Numerator for basic and diluted EPS from discontinued operations - net gain from discontinued operations | $ 35,424 | $ 14,843 | $ 2,377 | $ 1,897 | $ 2,159 | $ 1,944 | $ 2,273 | $ 1,568 | 54,541 | 7,944 |
Net income (loss) | $ 39,659 | $ 11,754 | $ (7,835) | $ (3,757) | $ (1,539) | $ (3,523) | $ 3,289 | $ (840) | 39,821 | (2,613) |
Amortization of preferred stock issuance costs | (42) | (206) | ||||||||
Net income (loss) attributable to common stockholders | $ 39,779 | $ (2,819) | ||||||||
Denominator | ||||||||||
Weighted average common stock outstanding – basic (in shares) | 1,631,326 | 1,589,952 | ||||||||
Weighted average common stock outstanding – diluted (in shares) | 1,631,326 | 1,589,952 | ||||||||
Net earnings (loss) per share of common stock – basic: | ||||||||||
Continuing operations - basic ( in USD per share) | $ 2.57 | $ (1.89) | $ (6.27) | $ (3.52) | $ (2.35) | $ (3.47) | $ 0.61 | $ (1.55) | $ (9.05) | $ (6.77) |
Discontinued operations - basic (in USD per share) | 21.49 | 9.09 | 1.46 | 1.17 | 1.35 | 1.22 | 1.43 | 0.99 | 33.43 | 5 |
Earnings (loss) per basic common share (in USD per share) | 24.06 | 7.20 | (4.81) | (2.35) | (1) | (2.25) | 2.04 | (0.56) | 24.38 | (1.77) |
Net earnings (loss) per share of common stock – diluted: | ||||||||||
Continuing operations - diluted (in USD per share) | 2.17 | (1.89) | (6.27) | (3.52) | (2.35) | (3.47) | 0.56 | (1.55) | (9.05) | (6.77) |
Discontinued operations - diluted (in USD per share) | 18.18 | 9.09 | 1.46 | 1.17 | 1.35 | 1.22 | 1.25 | 0.99 | 33.43 | 5 |
Earnings (loss) per diluted common share (in USD per share) | $ 20.35 | $ 7.20 | $ (4.81) | $ (2.35) | $ (1) | $ (2.25) | $ 1.81 | $ (0.56) | $ 24.38 | $ (1.77) |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | ||
Amortization of preferred stock issuance costs | $ 42 | $ 206 |
Stock options | ||
Denominator | ||
Antidilutive securities excluded from EPS calculation | 7,609 | 12,860 |
Restricted stock | ||
Denominator | ||
Antidilutive securities excluded from EPS calculation | 67,616 | 26,575 |
Preferred stock, if converted | ||
Denominator | ||
Antidilutive securities excluded from EPS calculation | 200,000 | 200,000 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Total income (loss) from continuing operations | $ 4,235 | $ (3,089) | $ (10,212) | $ (5,654) | $ (3,698) | $ (5,467) | $ 1,016 | $ (2,408) | $ (14,720) | $ (10,557) |
Less: Income from discontinued operations, net of tax | 35,424 | 14,843 | 2,377 | 1,897 | 2,159 | 1,944 | 2,273 | 1,568 | 54,541 | 7,944 |
Net income (loss) | $ 39,659 | $ 11,754 | $ (7,835) | $ (3,757) | $ (1,539) | $ (3,523) | $ 3,289 | $ (840) | $ 39,821 | $ (2,613) |
Continuing operations - basic ( in USD per share) | $ 2.57 | $ (1.89) | $ (6.27) | $ (3.52) | $ (2.35) | $ (3.47) | $ 0.61 | $ (1.55) | $ (9.05) | $ (6.77) |
Discontinued operations - basic (in USD per share) | 21.49 | 9.09 | 1.46 | 1.17 | 1.35 | 1.22 | 1.43 | 0.99 | 33.43 | 5 |
Earnings (loss) per basic common share (in USD per share) | 24.06 | 7.20 | (4.81) | (2.35) | (1) | (2.25) | 2.04 | (0.56) | 24.38 | (1.77) |
Continuing operations - diluted (in USD per share) | 2.17 | (1.89) | (6.27) | (3.52) | (2.35) | (3.47) | 0.56 | (1.55) | (9.05) | (6.77) |
Discontinued operations - diluted (in USD per share) | 18.18 | 9.09 | 1.46 | 1.17 | 1.35 | 1.22 | 1.25 | 0.99 | 33.43 | 5 |
Earnings (loss) per diluted common share (in USD per share) | $ 20.35 | $ 7.20 | $ (4.81) | $ (2.35) | $ (1) | $ (2.25) | $ 1.81 | $ (0.56) | $ 24.38 | $ (1.77) |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 17, 2021plantiffshares | Feb. 28, 2021USD ($) | Mar. 31, 2014 | Feb. 09, 2021USD ($) | Dec. 31, 2020USD ($) |
Subsequent Event [Line Items] | |||||
Exchange ratio for preferred stock to common stock | 0.8 | ||||
Front Yard | Termination Agreement | Affiliated entity | River Business Solutions Private Limited | |||||
Subsequent Event [Line Items] | |||||
Aggregate purchase price | $ 8,200,000 | ||||
Subsequent event | London Interbank Offered Rate (LIBOR) | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 1.00% | ||||
Subsequent event | Margin Deposit Assets | |||||
Subsequent Event [Line Items] | |||||
Payments to acquire publicly traded securities | $ 96,900,000 | ||||
Payment for asset acquisition, cash | 68,000,000 | ||||
Payment for asset acquisition, debt | $ 28,900,000 | ||||
Subsequent event | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Shares issued related to conversion of stock (in shares) | shares | 288,283 | ||||
Increase in the number of shares of common stock outstanding for future diluted EPS calculations (in shares) | shares | 222,843 | ||||
Subsequent event | Front Yard | Termination Agreement | Affiliated entity | River Business Solutions Private Limited | |||||
Subsequent Event [Line Items] | |||||
Aggregate purchase price | $ 8,200,000 | ||||
Subsequent event | Putnam | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | |||||
Subsequent Event [Line Items] | |||||
Number of plaintiffs | plantiff | 1 | ||||
Subsequent event | Putnam | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Series A Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Shares converted (in shares) | shares | 81,800 | ||||
Subsequent event | Putnam | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Shares issued related to conversion of stock (in shares) | shares | 288,283 |
Uncategorized Items - aamc-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |