Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 25, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | $ 17 | ||
Entity Common Stock, Shares Outstanding | 2,061,411 | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement relating to its 2022 annual meeting of shareholders (the "2022 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 2022 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 | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Atlanta, Georgia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 78,349 | $ 41,623 |
Front Yard common stock, at fair value | 0 | 47,355 |
Receivable from Front Yard | 0 | 3,414 |
Prepaid expenses and other assets | 1,837 | 3,328 |
Current assets held for sale | 0 | 894 |
Total current assets | 80,186 | 96,614 |
Non-current assets: | ||
Right-of-use lease assets | 825 | 656 |
Other non-current assets | 465 | 503 |
Non-current assets held for sale | 0 | 1,979 |
Total non-current assets | 1,290 | 3,138 |
Total assets | 81,476 | 99,752 |
Current liabilities: | ||
Accrued salaries and employee benefits | 983 | 2,539 |
Accounts payable and accrued liabilities | 3,465 | 9,152 |
Short-term lease liabilities | 139 | 75 |
Current liabilities held for sale | 0 | 1,338 |
Total current liabilities | 4,587 | 13,104 |
Non-current liabilities | ||
Long-term lease liabilities | 720 | 600 |
Other non-current liabilities | 2,697 | 1,027 |
Non-current liabilities held for sale | 0 | 1,599 |
Total non-current liabilities | 3,417 | 3,226 |
Total liabilities | 8,004 | 16,330 |
Commitments and contingencies (Note 7) | 0 | 0 |
Redeemable preferred stock: | ||
Preferred stock, $0.01 par value, 250,000 shares issued as of December 31, 2021 and December 31, 2020. 150,000 shares outstanding and $150,000 redemption value as of December 31, 2021 and 250,000 shares outstanding and $250,000 redemption value as of December 31, 2020. | 150,000 | 250,000 |
Stockholders' deficit: | ||
Common stock, $.01 par value, 5,000,000 authorized shares; 3,416,541 and 2,055,561 shares issued and outstanding, respectively, as of December 31, 2021 and 2,966,207 and 1,650,212 shares issued and outstanding, respectively, as of December 31, 2020. | 34 | 30 |
Additional paid-in capital | 143,523 | 46,574 |
Retained earnings | 57,450 | 63,426 |
Accumulated other comprehensive income (loss) | 54 | (65) |
Treasury stock, at cost, 1,360,980 shares as of December 31, 2021 and 1,315,995 shares as of December 31, 2020. | (277,589) | (276,543) |
Total stockholders' deficit | (76,528) | (166,578) |
Total liabilities and equity | $ 81,476 | $ 99,752 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
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) | 150,000 | 250,000 |
Preferred stock, redemption amount | $ 150,000,000 | $ 250,000,000 |
Common stock, par value (in 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) | 3,416,541 | 2,966,207 |
Common stock, shares outstanding (in shares) | 2,055,561 | 1,650,212 |
Treasury stock, shares (in shares) | 1,360,980 | 1,315,995 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses: | ||
Salaries and employee benefits | $ 5,635 | $ 11,977 |
Legal fees | 6,885 | 4,748 |
Professional fees | 1,531 | 1,457 |
General and administrative | 2,633 | 2,328 |
Acquisition charges | 3,908 | 0 |
Total expenses | 20,592 | 20,510 |
Other income: | ||
Change in fair value of Front Yard common stock | 146 | 6,270 |
Dividend income on Front Yard common stock | 0 | 244 |
Dividend income | 3,061 | 0 |
Gain on sale of equity securities | 8,347 | 0 |
Interest expense | (60) | 0 |
Other income | 154 | 45 |
Total other income | 11,648 | 6,559 |
Net loss from continuing operations before income taxes | (8,944) | (13,951) |
Income tax expense | 3,273 | 769 |
Net loss from continuing operations | (12,217) | (14,720) |
Discontinued Operations: | ||
Income from operations related to Front Yard, net of tax | 0 | 54,643 |
Gain (loss) on disposal of operation related to Front Yard | 7,485 | (102) |
Income tax expense related to disposal | 1,272 | 0 |
Net gain on discontinued operations | 6,213 | 54,541 |
Net income (loss) | (6,004) | 39,821 |
Amortization of preferred stock issuance costs | 0 | (42) |
Net income (loss) attributable to common stockholders | (6,004) | 39,779 |
Continuing operations earnings per share | ||
Net loss from continuing operations | (12,217) | (14,720) |
Reversal of amortization of preferred stock issuance costs | 0 | 42 |
Gain on preferred stock transaction | 87,961 | 0 |
Numerator for earnings per share from continuing operations | 75,744 | (14,678) |
Discontinued operations earnings per share | ||
Net income from discontinued operations | $ 6,213 | $ 54,541 |
Earnings (loss) per share of common stock – basic: | ||
Continuing operations - basic ( in USD per share) | $ 37.83 | $ (9.05) |
Discontinued operations - basic (in USD per share) | 3.11 | 33.43 |
Earnings (loss) per basic common share (in USD per share) | $ 40.94 | $ 24.38 |
Weighted average common stock outstanding – basic (in shares) | 2,002,111 | 1,631,326 |
Earnings (loss) per share of common stock – diluted: | ||
Continuing operations - diluted (in USD per share) | $ 35.03 | $ (9.05) |
Discontinued operations - diluted (in USD per share) | 2.87 | 33.43 |
Earnings (loss) per diluted common share (in USD per share) | $ 37.90 | $ 24.38 |
Weighted average common stock outstanding – diluted (in shares) | 2,162,378 | 1,631,326 |
Equity Securities | ||
Other income: | ||
Gain on sale of equity securities | $ 8,347 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (6,004) | $ 39,821 |
Other comprehensive loss: | ||
Currency translation adjustments, net | (6) | (32) |
Total other comprehensive loss | (6) | (32) |
Comprehensive income (loss) | $ (6,010) | $ 39,789 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 2,897,177 | |||||
Beginning 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued under share-based compensation plans, net of employee tax withholdings (in shares) | 162,051 | |||||
Common shares issued under share-based compensation plans, net of employee tax withholdings | (800) | $ 2 | (2) | |||
Shares withheld for taxes upon vesting of restricted stock | (27) | (27) | ||||
Amortization of preferred stock issuance costs | 0 | |||||
Share-based compensation | 1,720 | 1,939 | (219) | |||
Currency translation adjustments, net | (6) | (6) | ||||
Acquisition and disposition of subsidiaries | 153 | 28 | 125 | |||
Preferred stock conversion (in shares) | 288,283 | |||||
Preferred stock conversion | 95,014 | $ 2 | 95,012 | |||
Net income (loss) | $ (6,004) | (6,004) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 2,055,561 | 3,416,541 | ||||
Ending balance at Dec. 31, 2021 | $ (76,528) | $ 34 | $ 143,523 | $ 57,450 | $ 54 | $ (277,589) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ (6,004,000) | $ 39,821,000 |
Net income from discontinued operations | 6,213,000 | 54,541,000 |
Net loss from continuing operations | (12,217,000) | (14,720,000) |
Adjustments to reconcile net income (loss) from continuing operations to net cash from (used in) operating activities: | ||
Change in fair value of Front Yard common stock | (146,000) | (6,270,000) |
Share-based compensation | 1,939,000 | 1,915,000 |
Depreciation | 309,000 | 354,000 |
Unrealized loss on securities | 139,000 | 76,000 |
Dividend income | (3,061,000) | 0 |
Gain on securities | (8,347,000) | 0 |
Changes in operating assets and liabilities, net of effects from discontinued operations: | ||
Receivable from Front Yard | 3,414,000 | 1,600,000 |
Prepaid expenses and other assets | 56,000 | (2,477,000) |
Other non-current assets | 1,553,000 | 699,000 |
Accrued salaries and employee benefits | (1,544,000) | (1,206,000) |
Accounts payable and accrued liabilities | (7,064,000) | (119,000) |
Other non-current liabilities and operating lease liabilities | 1,854,000 | 956,000 |
Net cash used in continuing operations | (23,115,000) | (19,192,000) |
Net cash from discontinued operations | 5,439,000 | 37,798,000 |
Net cash from (used in) operating activities | (17,676,000) | 18,606,000 |
Investing activities: | ||
Purchases of securities | (96,950,000) | 0 |
Dividends received | 3,061,000 | 0 |
Proceeds from sale of interest in equity securities | 152,796,000 | 0 |
Investment in property and equipment | (511,000) | (86,000) |
Net cash from (used in) continuing operations | 58,396,000 | (86,000) |
Net cash from discontinued operations | 511,000 | 3,643,000 |
Net cash from investing activities | 58,907,000 | 3,557,000 |
Financing activities: | ||
Proceeds from borrowed funds | 28,549,000 | 0 |
Repayment of borrowed funds | (28,549,000) | 0 |
Conversion of preferred stock | (3,763,000) | 0 |
Proceeds and payment of tax withholding on exercise of stock options, net | 5,000 | 14,000 |
Shares withheld for taxes upon vesting of restricted stock | (1,046,000) | (311,000) |
Net receipts (payment) from subsidiaries included in disposal group | (80,000) | 1,010,000 |
Net cash from (used in) continuing operations | (4,884,000) | 713,000 |
Net cash from (used in) discontinued operations | 80,000 | (1,010,000) |
Net cash used in financing activities | (4,804,000) | (297,000) |
Net change in cash and cash equivalents | 36,427,000 | 21,866,000 |
Effect of exchange rate changes on cash and cash equivalents | 115,000 | (24,000) |
Consolidated cash and cash equivalents, beginning of period | 41,807,000 | 19,965,000 |
Consolidated cash and cash equivalents, end of the period | 78,349,000 | 41,807,000 |
Supplemental disclosure of cash flow information (continuing and discontinued operations): | ||
Cash paid for interest | 60,000 | 0 |
Income taxes paid | 2,103,000 | 428,000 |
Right-of-use lease assets recognized - operating leases | 308,000 | 0 |
Cash and cash equivalents | 78,349,000 | 41,623,000 |
Consolidated cash and cash equivalents | 78,349,000 | 41,807,000 |
Held-for-Sale | ||
Cash and cash equivalents included in assets of discontinued operations | $ 0 | $ 184,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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. In October 2013, we applied for and were granted registration by the Securities and Exchange Commission (the “SEC”) as a registered investment adviser under Section 203(c) of the Investment Advisers Act of 1940. We historically operated in a single segment focused on providing asset management and certain corporate governance services to investment vehicles. Our primary client was 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. Our primary business prior to December 31, 2021 was to provide asset management and certain corporate governance services to institutional investors. On August 13, 2020, we entered into a Termination and Transition Agreement (the “Termination Agreement”) with Front Yard and Front Yard Residential L.P. (“FYR LP”) to terminate the Amended and Restated Asset Management Agreement, dated as of May 7, 2019 (the “Amended AMA”), by and among Front Yard, FYR LP and AAMC, and to provide for a transition plan to facilitate the internalization of Front Yard’s asset management function (the “Transition Plan”). The Termination Agreement was effective on December 31, 2020, the date that the parties mutually agreed that the Transition Plan had been satisfactorily completed (the “Termination Date”) and the Amended AMA was terminated in its entirety. For further information, please see Note 3 Related Parties Upon the Company’s prior business operations with Front Yard ceasing the first week of 2021, AAMC began a comprehensive search in 2021 to acquire an operating company with the proceeds received from the sale of its operations via the Termination Agreement. We are in the process of establishing and launching multiple new lines of business, a short-term investor loan aggregation and origination business and 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 will be augmented by our past experience. For further information, please see Note 14 - Subsequent Events . 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”). Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. 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 Series A Convertible Preferred Stock in 2014 Private Placement Issuance 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 had 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 through March 15, 2040 with a final mandatory redemption date on March 15, 2044. 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 as of the redemption date 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 through March 15, 2040 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 therefore. Due to the redemption provisions of the Series A Preferred Stock, we classify these shares as mezzanine equity, outside of permanent stockholders' equity. 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. Between January 31, 2020 and February 3, 2020, we received purported notices from all of the 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 did 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 were obligated to redeem any of the Series A Shares under the Certificate. Current Litigation – AAMC (plaintiff) v. Luxor (defendant) 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. Pursuant to 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 (plaintiff) v. AAMC (defendant) 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. 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. – Luxor Books and Records Demand On April 26, 2021, Luxor, sent a letter to the Company demanding, under the common law of the USVI, the right to inspect certain books and records of the Company (the “Demand”). According to Luxor, the purpose of the Demand is to investigate whether the Company’s Board of Directors may have considered or engaged in transactions with or at the direction of a significant shareholder of the Company or whether the Company’s Board of Directors and/or Company management may have mismanaged the Company or engaged in wrongdoing, may not have properly discharged their fiduciary duties, or may have conflicts of interest. Luxor further alleges that it seeks an inspection of the Company books and records to determine whether the current directors should continue to serve on the Company’s board or whether a derivative suit should be filed. On May 10, 2021, the Company sent a letter responding to the Demand and declining to provide the Company’s books and records for inspection (the “Response”). The Response states that Luxor does not have a credible basis for the Demand, which is required under the USVI common law; that, as preferred shareholders with no voting rights, Luxor’s purpose for the Demand is not reasonably related to Luxor’s interests as shareholders of the Company because Luxor cannot vote in connection with Board elections or business transactions of the Company; and that Luxor’s Demand serves only to personally benefit Luxor in its private suit against the Company. 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 Settlement Activities On February 17, 2021, the Company entered into a settlement agreement dated as of February 17, 2021 (the “Putnam Agreement”) with Putnam. Pursuant to the Putnam Agreement, AAMC and Putnam agreed to exchange all of Putnam’s 81,800 Series A Shares for 288,283 shares of AAMC’s common stock. AAMC agreed to pay to Putnam $1,636,000 within three On August 27, 2021, the Company entered into a settlement agreement (the “Wellington Agreement”) with certain funds managed by Wellington Management Company LLP (collectively, “Wellington”). Under the Wellington Agreement, the Company agreed to pay Wellington $2,093,000 in exchange for 18,200 Series A Shares ($18.2 million of liquidation preference) held by Wellington , and in return Wellington agreed to release AAMC from all claims related to the Series A Shares . As a result of this settlement, we recognized a one-time gain directly to Additional paid in capital of $16.1 million gain. Subsequent to year end, on January 6, 2022, the Company entered into a settlement agreement dated as of January 6, 2022 (the "Settlement Agreement") with two institutional investors. Under the Settlement Agreement, the Company has agreed to pay the institutional investors approximately $665 thousand in cash in exchange for 5,788 Series A shares ($5.79 million of liquidation preference) held by the institutional investors. As a result of this settlement, the Company estimates that it will recognize a gain of approximately $5.1 million to Additional paid in capital in the first quarter of 2022. 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, 2021 and 2020, we had 1,200 and 1,100 and shares outstanding, respectively, and we included the redemption value of these shares of and $12,000 and $11,000 respectively, within accounts payable and accrued liabilities in our consolidated balance sheets. In January 2021, our Board of Directors declared and paid an aggregate of $1.6 million (in relation to the 2020 fiscal year) of dividends on these shares of preferred stock. Such dividends are included in salaries and employee benefits in our condensed consolidated statements 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 6 . 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. 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 2020 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, 2021 | |
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, 2021 or 2020. 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. Any gain on settlement of preferred shares, which is recorded directly to equity, is included in the numerators for our earnings per share calculations. 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 held was 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. We held no Front Yard common stock as of January 12, 2021. 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 two 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 in 2020 represent the disposal group held at the lower of cost or fair value less estimated costs to sell. The Company had no assets and liabilities for sale in 2021. 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 were 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. See Note 8 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. 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. 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, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations Our primary client prior to December 31, 2020 had 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 prior to December 31, 2021 was generated through our asset management agreements with Front Yard. 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 acquired 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 (2,923,166) 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. • 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 $5.0 million, in Front Yard common stock, of the aggregate purchase price of the Transferred Assets in advance of the sale of shares. We have included these upfront payments within accounts payable and accrued liabilities in our condensed consolidated balance sheet. We have concluded that the Transferred Assets meets the held-for-sale criteria and have therefore classified the Transferred Assets as held for sale on our condensed consolidated balance sheet at December 31, 2020. The termination of the Amended AMA and the sale of the Transferred Assets also represents a significant strategic shift that will have a major effect on our operations and financial results. Therefore, we have classified the results of operations related to Front Yard as discontinued operations in our condensed consolidated statements of operations. On August 13, 2020, AAMC and Front Yard entered into Termination and Transition Agreement, pursuant to which Front Yard agreed to effectively internalize the asset management function of Front Yard. Pursuant to the agreement, Front Yard acquired the equity interests of AAMC's Indian subsidiary, the equity interests of AAMC's Cayman Islands subsidiary, the right to solicit and hire designated AAMC employees that oversaw the management of Front Yard's business and other assets of AAMC that were used in connection with the operation of Front Yard's business. On December 31, 2020, in connection with the Termination Agreement, the company completed the assignment of our lease in Charlotte, North Carolina to Front Yard. Additionally, on December 31, 2020, we completed the sale of our Cayman Islands subsidiary. On January 1, 2021, in connection with the Termination Agreement, the company completed the sale of our India subsidiary. The carrying value of major classes of assets and liabilities related to our discontinued operations that constitute the Disposal Group at December 31, 2021 and December 31, 2020 were as follows ($ in thousands): December 31, 2021 December 31, 2020 Current assets held for sale: Cash and cash equivalents $ — $ 184 Prepaid expenses and other assets — 710 Total current assets held for sale — 894 Non-current assets held for sale: Right-of-use lease assets — 1,612 Other non-current assets — 367 Total non-current assets held for sale — 1,979 Total assets held for sale $ — $ 2,873 Current liabilities held for sale: Accrued salaries and employee benefits $ — $ 910 Accounts payable and accrued liabilities — 300 Short-term lease liabilities — 128 Total current liabilities held for sale — 1,338 Non-current liabilities held for sale: Non-current lease liabilities — 1,599 Total non-current liabilities held for sale — 1,599 Total liabilities held for sale $ — $ 2,937 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, 2021 2020 Revenues from discontinued operations: Management fees from Front Yard $ — $ 13,713 Termination fee from Front Yard — 46,000 Expense reimbursements from Front Yard — 2,867 Total revenues from discontinued operations — 62,580 Expenses from discontinued operations: Salaries and employee benefits — 5,592 Legal and professional fees — 256 General and administrative — 1,521 Total expenses from discontinued operations — 7,369 Other income (loss) from discontinued operations: Gain on disposal 7,485 — Other income (loss) — 20 Total other income (loss) from discontinued operations 7,485 20 Net income from discontinued operations before income taxes 7,485 55,231 Loss on disposal of discontinued operations before income taxes — 102 Income tax expense 1,272 588 Net income from discontinued operations $ 6,213 $ 54,541 The following table details cash flow information related to our discontinued operations for the periods indicated ($ in thousands): Year ended December 31, 2021 2020 Total operating cash flows from discontinued operations $ 5,439 $ 37,798 Total investing cash flows from discontinued operations 511 3,643 Total financing cash flows (used in) from discontinued operations 80 (1,010) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 at December 31, 2020 ($ 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 $ — $ — As of December 31, 2021, the Company had sold its investments in securities and there were no securities outstanding. We did not transfer any assets from one level to another level during the years ended December 31, 2021 or 2020. The fair value of our Front Yard common stock is based on unadjusted quoted market prices from active markets. At December 31, 2020, we held 2,923,166 shares of Front Yard's common stock representing approximately 4.9% of Front Yard's then-outstanding common stock. We previously acquired 1,624,465 shares of Front Yard's common stock in open market transactions, and 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. On January 11, 2021, Front Yard completed its previously announced merger, and all 2,923,166 shares were sold. For further information, please refer to Note 1 . Investment gains/losses for December 31, 2021 and 2020, are summarized as follows ($ in thousands): Year ended December 31, 2021 2020 Equity securities: Investment gains on securities sold during the period $ 8,347 $ — 8,347 — Front Yard common stock: Change in unrealized losses during the period on securities held at the end of the end of the period — (6,270) Investment gains on securities sold during the period 146 — 146 (6,270) Total change in fair value of equity securities and Front Yard common stock $ 8,493 $ (6,270) Investment gains and losses include unrealized gains and losses from changes in fair values during the period on positions that we owned at the end of such period, as well as gains and losses on positions sold during the period. As reflected in the condensed consolidated statements of cash flows, total proceeds from sales of securities during December 31, 2021 was $152.8 million which consisted of proceeds from sales of Front Yard common stock of $47.5 million and $105.3 million in proceeds from sales of securities. No proceeds from sales of securities were received in 2020. In the preceding table, investment gains/losses on equity securities sold during the period reflect the difference between the sales proceeds and the fair value of the equity securities sold at the beginning of the applicable period. A summary of the year-to-date activity of Front Yard common stock and equity securities is presented in the table below (in thousands): Front Yard Common Stock Equity Securities Shares Basis Shares Basis December 31, 2020 2,923 $ 41,635 — $ — Purchased — 0 8,123 96,950 Sold (2,923) (41,635) (8,123) (96,950) December 31, 2021 — $ — — $ — A summary of the cost basis, fair value and the corresponding amounts of gross unrealized gains and losses recognized as of the dates indicated are presented in the table below ($ in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Front Yard common stock $ 41,635 $ 5,720 $ — $ 47,355 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | 5. BorrowingsIn 2021, the Company began borrowing under a standard margin arrangement with one of our banking institutions. The margin account is secured by the securities held in our brokerage account with this institution. We paid interest on all of our borrowings each month when a balance was owed. As of December 31, 2021, the Company liquidated its security holdings and the margin arrangement has been repaid. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 6. Leases We currently occupy office space under operating leases in Christiansted, St. Croix, U.S. Virgin Islands, and Bengaluru, India. As of December 31, 2021 and December 31, 2020, our weighted average remaining lease term, including applicable extensions, was 5.1 years and 7.5 years, respectively, and we applied a discount rate of 7.0% and 7.0%, respectively, to our office leases. We determined the discount rate for each lease to be either the discount rate stated in the lease agreement or our estimated rate that we would charge to finance real estate assets. During the years ended December 31, 2021 and December 31, 2020, we recognized rent expense of $0.2 million and $0.7 million, respectively, related to long-term operating leases. We had no short-term rent expense in 2021 and $0.1 million in 2020. We include rent expense as a component of general and administrative expenses in the consolidated statements of operations. We had no finance leases during the years ended December 31, 2021 and December 31, 2020. The following table presents a maturity analysis of our operating leases as of December 31, 2021 ($ in thousands): Operating Lease Liabilities 2022 $ 194 2023 204 2024 209 2025 206 2026 131 Thereafter 76 Total lease payments 1,020 Less: interest 161 Lease liabilities $ 859 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. 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, 2021: Litigation regarding Luxor Capital Group, LP and certain of its managed funds and accounts ("Luxor") Please refer to Note 1 – Section Series A Convertible Preferred Stock in 2014 Private Placement. Executive Arbitrations Former Chief Executive Officer, Indroneel Chatterjee On May 3, 2021, Mr. Chatterjee, commenced an arbitration against the Company and each of its directors. The arbitration complaint alleges that the Company’s April 16, 2021 for cause termination of Mr. Chatterjee was in breach of Mr. Chatterjee’s Amended and Restated Employment Agreement and made extra contractual claims against the Company for not affording Mr. Chatterjee a “fair procedure” and placed him in a “false light” by disclosing Mr. Chatterjee’s termination in its public announcement of the for cause termination. In addition, the arbitration complaint also asserts a tort claim against each of the Company’s directors relating to that termination and against the Company for its April 16, 2021 public announcement of the for cause termination. Mr. Chatterjee’s arbitration complaint seeks unspecified damages for his contract claims including for loss of income, stock and bonus, and punitive damages on his tort claims. On June 10, 2021, the Company and its directors responded to the arbitration complaint and advanced counterclaims against Mr. Chatterjee. On October 20, 2021, the arbitrator granted the Company’s motion to dismiss with respect to Mr. Chatterjee’s “fair procedure” and “false light” claims, but denied the motion to dismiss the tort claim against each of the directors. The arbitrator has set a trial date for October 24-28, 2022. The Company and the directors intend to vigorously defend the claims. Former General Counsel, Graham Singer On June 25, 2021, Mr. Singer commenced an arbitration against the Company and its subsidiary AAMC US, Inc. regarding his compensation and the terms of his employment. The Company had previously demanded that Mr. Singer return his signing bonus in accordance with the terms of his employment agreement. The Company and Mr. Singer have agreed to a settlement in principle resolving all claims and counterclaims. 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 Financial Corporation (“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. The Court held additional oral argument on the pending motions on October 25, 2021. 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. 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. The COVID-19 pandemic has had significant effects on global markets, supply chains, businesses and communities. As a result of increased COVID-19 vaccination rates and significant reopening of the economy, related risks appear to have decreased. Nevertheless, the Company has taken appropriate actions to mitigate the negative impact the virus has on the Company by reducing employee travel, allowing employees to work remotely, and canceling in-person meetings when possible. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 8. 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. |
Incentive Compensation and Shar
Incentive Compensation and Share-based Payments | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Compensation and Share-based Payments | 9. 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 years ended December 31, 2021 and 2020, we recorded approximately $21,000 and $216,000 compensation expense related to grants of stock options, respectively. The following table sets forth the activity of our outstanding options: Number of Options Weighted Average Exercise Price per Share 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 Forfeited/expired (3) (61,375) 12.87 December 31, 2021 5,850 $ 4.36 _____________ (1) The intrinsic value of stock options exercised during the year ended December 31, 2020 was $0.1 million. (2) The stock options had a weighted average grant date fair value of $10.61 and had an exercise price of $13.11. The stock options were forfeited on April 16, 2021 due to the former Chief Executive Officer's termination. (3) 1,000 stock options expired on July 18, 2021 and 375 expired on July 21, 2021. All forfeited and expired options had a weighted average exercise price of $12.87. As of December 31, 2021, we had 5,850 outstanding options issued under all of our share-based compensation plans or as inducement awards, with a weighted average exercise price of $4.36, weighted average remaining life of 0.2 years and intrinsic value of $0.1 million. Subsequent to year end, all options were exercised in March 2022. We had 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. No options were granted in 2021. 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, 2021, we granted a total of 90,671 shares of service-based restricted stock to members of management. Of which, 82,671 shares of service-based restricted stock awards were issued with a weighted average grant date fair value per share of $26.25 which vested immediately. An additional 8,000 shares were issued with a weighted average grant date value per share of $21.58. These additional shares of service-based restricted stock awards were granted either as inducement awards or under our Equity Incentive Plans. These grants will vest in three equal annual installments based on the grant date(s), subject to forfeiture or acceleration. 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 shares of service-based restricted stock awards were granted either as inducement awards or under our Equity Incentive Plans. These grants were to vest in three equal annual installments based on the grant date(s), subject to forfeiture or acceleration. However, 50,000 shares of the restricted stock units were forfeited in 2021 due to termination or resignations of members of management. The forfeited shares had a weighted average grant date value per share of $14.35. We recorded $1.8 million and $1.7 million of compensation expense related to these grants for the years ended December 31, 2021, and 2020, respectively. As of December 31, 2021 and 2020, we had $0.3 million and $1.0 million, respectively, of total unrecognized share-based compensation cost to be recognized over a weighted average remaining estimated term of 1.2 years and 0.9 years, respectively. 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, 2021 and 2020, we granted 7,236 and 8,622 shares of stock, respectively, pursuant to our Equity Incentive Plans with a weighted average grant date fair value per share of $24.88 and $20.87, respectively. The following table sets forth the activity of our restricted stock: Number of Shares Weighted Average Grant Date Fair Value 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 Granted 97,907 25.77 Vested (1) (162,051) 14.50 Forfeited/expired (1) (50,000) 14.35 December 31, 2021 15,236 $ 23.15 _____________ (1) The vesting date fair value of restricted stock that vested during the years ended December 31, 2021, 2020 and 2019 was $2.1 million, $1.1 million, and $0.9 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, 2021 Stock options outstanding 5,850 Possible future issuances under share-based compensation plans 122,288 128,138 As of December 31, 2021, we had 1,583,459 remaining shares of common stock, excluding treasury shares, authorized to be issued under our charter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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. By letter dated December 21, 2020, the EDC approved a temporary waiver (the "Waiver") of the Company's minimum employment requirements to five full-time USVI employees for the period from January 1, 2021 to December 31, 2021. At December 31, 2021, the company had two less USVI employees than what is required under the provisions of the Waiver. The Company is also continuing to seek to hire USVI employees to meet the requirements of the Waiver. The Company's Chief Financial Officer and General Counsel have relocated to the USVI. They will be eligible USVI employees after one year of residency. For the year ended December 31, 2020, in addition to the management fees from Front Yard (which represent eligible income under the EDC Certificate), AAMC 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 ($ in thousands): Year ended December 31, 2021 2020 U.S. Virgin Islands $ (8,879) $ (15,841) Other (65) 1,890 Income (loss) before income taxes $ (8,944) $ (13,951) The provision (benefit) for income taxes from continuing operations is summarized as follows ($ in thousands): Year ended December 31, 2021 2020 Current Federal $ 4,378 $ (1,002) State — — International 203 (183) Total current tax (benefit) expense 4,581 (1,185) Deferred Federal (1,281) 1,420 State — — International (27) 534 Total deferred tax expense (benefit) (1,308) 1,954 Total tax expense $ 3,273 $ 769 The following table sets forth the components of our total deferred tax assets ($ in thousands): December 31, 2021 December 31, 2020 Deferred tax assets: Stock compensation $ 2 $ 64 Accrued expenses 24 171 Net operating losses (1) 637 285 Lease liabilities 14 491 Other 1 44 Gross deferred tax assets 678 1,055 Deferred tax liability: Right-of-use lease assets 13 459 Investments — 1,547 Depreciation — 2 Other — 5 Gross deferred tax liabilities 13 2,013 Net deferred tax (liability) asset before valuation allowance 665 (958) Valuation allowance (498) (69) Deferred tax (liability) asset, net $ 167 $ (1,027) _____________ (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 increase in our valuation allowance in 2021 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 2021. The valuation allowance increased by $429 thousand during the year ended December 31, 2021. 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, 2021 2020 U.S. Virgin Islands income tax rate 23.1 % 23.1 % State and local income tax rates — (0.1) EDC benefits in the USVI (48.2) (33.0) Foreign tax rate differential (0.2) (0.2) Subpart F income (18.5) — Permanent and other (1.6) (1.5) Share-based compensation (0.2) (0.5) Valuation allowance (4.8) (1.1) Foreign Tax Credit 13.6 — Other Adjustments / Rate difference on US NOL carryback — 7.9 Effective income tax rate (36.8) % (5.4) % During the tax years ended December 31, 2021 and 2020, we recognized no interest or penalties associated with unrecognized tax benefits. As of December 31, 2021 and 2020, 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 2018 to 2021 and in the United States for tax years 2018 to 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. 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, 2021 2020 Numerator Continuing operations: Net loss from continuing operations $ (12,217) $ (14,720) Amortization of preferred stock issuance costs — (42) Gain on preferred stock transactions 87,961 — Numerator for basic and diluted EPS from continuing operations – net income (loss) from continuing operations attributable to common stockholders $ 75,744 $ (14,762) Discontinued operations: Numerator for basic and diluted EPS from discontinued operations - net gain from discontinued operations $ 6,213 54,541 Total: Net income (loss) $ (6,004) $ 39,821 Amortization of preferred stock issuance costs — (42) Gain on preferred stock transactions 87,961 — Numerator for basic and diluted EPS - net income attributable to common stockholders 81,957 39,779 Denominator Weighted average common stock outstanding – basic 2,002,111 1,631,326 Weighted average common stock outstanding – diluted 2,162,378 1,631,326 Earnings (loss) per share of common stock – basic: Continuing operations - basic $ 37.83 $ (9.05) Discontinued operations - basic 3.11 33.43 Earnings per basic common share $ 40.94 $ 24.38 Earnings (loss) per share of common stock – diluted: Continuing operations - diluted $ 35.03 $ (9.05) Discontinued operations - diluted 2.87 33.43 Earnings per diluted common share $ 37.90 $ 24.38 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, 2021 2020 Numerator Reversal of amortization of preferred stock issuance costs $ — $ 42 Denominator Stock options — 7,609 Restricted stock — 67,616 Preferred stock, if converted — 200,000 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information Our primary business prior to December 31, 2020 was 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 previously operated as a single segment focused on providing asset management and corporate governance services. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Management has evaluated the impact of all events subsequent to December 31, 2021 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: Alternative Lending Group The Company has started operations of its Alternative Lending Group (ALG) with a capital commitment of $40.0 million. As of March 31, 2022, the Company's pipeline of loans consists of $18.5 million of loans acquired with an additional $9.2 million under evaluation for a total of $27.7 million. Settlement of Preferred Shares Refer to Note 1 for an additional settlement of the Series A Preferred shares. On February 17, 2022, t he Company paid $1.2 million as final consideration to Putnam Focused Equity Fund, a series of Putnam Funds Trust ("Putnam") as set forth in the Settlement Agreement dated February 17, 2021. Settlement of Litigation Refer to Note 7 for settlement of litigation regarding Graham Singer. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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”). Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. 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 6 . 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. 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 2020 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 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, 2021 or 2020. |
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. Any gain on settlement of preferred shares, which is recorded directly to equity, is included in the numerators for our earnings per share calculations. |
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 stockThe shares of Front Yard common stock that we held was 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. We held no Front Yard common stock as of January 12, 2021. |
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. 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 in 2020 represent the disposal group held at the lower of cost or fair value less estimated costs to sell. The Company had no assets and liabilities for sale in 2021. |
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 were 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. See Note 8 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. |
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. |
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 $300.0 million in shares of our common stock and (ii) upon our withholding of shares of our common stock to satisfy tax withholding obligations in connection with the vesting of our restricted stock. |
Fair value measurement | The fair value of our Front Yard common stock is based on unadjusted quoted market prices from active markets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying value of major classes of assets and liabilities related to our discontinued operations that constitute the Disposal Group at December 31, 2021 and December 31, 2020 were as follows ($ in thousands): December 31, 2021 December 31, 2020 Current assets held for sale: Cash and cash equivalents $ — $ 184 Prepaid expenses and other assets — 710 Total current assets held for sale — 894 Non-current assets held for sale: Right-of-use lease assets — 1,612 Other non-current assets — 367 Total non-current assets held for sale — 1,979 Total assets held for sale $ — $ 2,873 Current liabilities held for sale: Accrued salaries and employee benefits $ — $ 910 Accounts payable and accrued liabilities — 300 Short-term lease liabilities — 128 Total current liabilities held for sale — 1,338 Non-current liabilities held for sale: Non-current lease liabilities — 1,599 Total non-current liabilities held for sale — 1,599 Total liabilities held for sale $ — $ 2,937 The following table details the components comprising net income from our discontinued operations ($ in thousands): Year ended December 31, 2021 2020 Revenues from discontinued operations: Management fees from Front Yard $ — $ 13,713 Termination fee from Front Yard — 46,000 Expense reimbursements from Front Yard — 2,867 Total revenues from discontinued operations — 62,580 Expenses from discontinued operations: Salaries and employee benefits — 5,592 Legal and professional fees — 256 General and administrative — 1,521 Total expenses from discontinued operations — 7,369 Other income (loss) from discontinued operations: Gain on disposal 7,485 — Other income (loss) — 20 Total other income (loss) from discontinued operations 7,485 20 Net income from discontinued operations before income taxes 7,485 55,231 Loss on disposal of discontinued operations before income taxes — 102 Income tax expense 1,272 588 Net income from discontinued operations $ 6,213 $ 54,541 The following table details cash flow information related to our discontinued operations for the periods indicated ($ in thousands): Year ended December 31, 2021 2020 Total operating cash flows from discontinued operations $ 5,439 $ 37,798 Total investing cash flows from discontinued operations 511 3,643 Total financing cash flows (used in) from discontinued operations 80 (1,010) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 at December 31, 2020 ($ 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 $ — $ — |
Investment Gains/Losses | Investment gains/losses for December 31, 2021 and 2020, are summarized as follows ($ in thousands): Year ended December 31, 2021 2020 Equity securities: Investment gains on securities sold during the period $ 8,347 $ — 8,347 — Front Yard common stock: Change in unrealized losses during the period on securities held at the end of the end of the period — (6,270) Investment gains on securities sold during the period 146 — 146 (6,270) Total change in fair value of equity securities and Front Yard common stock $ 8,493 $ (6,270) |
Common Stock and Equity Securities Activity | A summary of the year-to-date activity of Front Yard common stock and equity securities is presented in the table below (in thousands): Front Yard Common Stock Equity Securities Shares Basis Shares Basis December 31, 2020 2,923 $ 41,635 — $ — Purchased — 0 8,123 96,950 Sold (2,923) (41,635) (8,123) (96,950) December 31, 2021 — $ — — $ — |
Summary of Cost Basis, Fair Value, and Unrealized Gains (Losses) | A summary of the cost basis, fair value and the corresponding amounts of gross unrealized gains and losses recognized as of the dates indicated are presented in the table below ($ in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Front Yard common stock $ 41,635 $ 5,720 $ — $ 47,355 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The following table presents a maturity analysis of our operating leases as of December 31, 2021 ($ in thousands): Operating Lease Liabilities 2022 $ 194 2023 204 2024 209 2025 206 2026 131 Thereafter 76 Total lease payments 1,020 Less: interest 161 Lease liabilities $ 859 |
Incentive Compensation and Sh_2
Incentive Compensation and Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 15,256 2.77 Granted (2) 60,000 13.11 Exercised (1) (8,031) 1.66 December 31, 2020 67,225 12.13 Forfeited/expired (3) (61,375) 12.87 December 31, 2021 5,850 $ 4.36 _____________ (1) The intrinsic value of stock options exercised during the year ended December 31, 2020 was $0.1 million. (2) The stock options had a weighted average grant date fair value of $10.61 and had an exercise price of $13.11. The stock options were forfeited on April 16, 2021 due to the former Chief Executive Officer's termination. (3) 1,000 stock options expired on July 18, 2021 and 375 expired on July 21, 2021. All forfeited and expired options had a weighted average exercise price of $12.87. |
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, 2019 111,757 54.18 Granted 78,622 14.75 Vested (1) (60,999) 66.70 December 31, 2020 129,380 24.32 Granted 97,907 25.77 Vested (1) (162,051) 14.50 Forfeited/expired (1) (50,000) 14.35 December 31, 2021 15,236 $ 23.15 _____________ (1) The vesting date fair value of restricted stock that vested during the years ended December 31, 2021, 2020 and 2019 was $2.1 million, $1.1 million, and $0.9 million, respectively. |
Schedule of Shares Reserved for Future Issuance | The following table sets forth the number of shares of common stock reserved for future issuance. We may issue new shares or issue shares from treasury shares upon the exercise of stock options or the vesting of restricted stock. December 31, 2021 Stock options outstanding 5,850 Possible future issuances under share-based compensation plans 122,288 128,138 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income by Jurisdiction | The following table sets forth the components of income (loss) from continuing operations before income taxes ($ in thousands): Year ended December 31, 2021 2020 U.S. Virgin Islands $ (8,879) $ (15,841) Other (65) 1,890 Income (loss) before income taxes $ (8,944) $ (13,951) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes from continuing operations is summarized as follows ($ in thousands): Year ended December 31, 2021 2020 Current Federal $ 4,378 $ (1,002) State — — International 203 (183) Total current tax (benefit) expense 4,581 (1,185) Deferred Federal (1,281) 1,420 State — — International (27) 534 Total deferred tax expense (benefit) (1,308) 1,954 Total tax expense $ 3,273 $ 769 |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the components of our total deferred tax assets ($ in thousands): December 31, 2021 December 31, 2020 Deferred tax assets: Stock compensation $ 2 $ 64 Accrued expenses 24 171 Net operating losses (1) 637 285 Lease liabilities 14 491 Other 1 44 Gross deferred tax assets 678 1,055 Deferred tax liability: Right-of-use lease assets 13 459 Investments — 1,547 Depreciation — 2 Other — 5 Gross deferred tax liabilities 13 2,013 Net deferred tax (liability) asset before valuation allowance 665 (958) Valuation allowance (498) (69) Deferred tax (liability) asset, net $ 167 $ (1,027) _____________ (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, 2021 2020 U.S. Virgin Islands income tax rate 23.1 % 23.1 % State and local income tax rates — (0.1) EDC benefits in the USVI (48.2) (33.0) Foreign tax rate differential (0.2) (0.2) Subpart F income (18.5) — Permanent and other (1.6) (1.5) Share-based compensation (0.2) (0.5) Valuation allowance (4.8) (1.1) Foreign Tax Credit 13.6 — Other Adjustments / Rate difference on US NOL carryback — 7.9 Effective income tax rate (36.8) % (5.4) % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Numerator Continuing operations: Net loss from continuing operations $ (12,217) $ (14,720) Amortization of preferred stock issuance costs — (42) Gain on preferred stock transactions 87,961 — Numerator for basic and diluted EPS from continuing operations – net income (loss) from continuing operations attributable to common stockholders $ 75,744 $ (14,762) Discontinued operations: Numerator for basic and diluted EPS from discontinued operations - net gain from discontinued operations $ 6,213 54,541 Total: Net income (loss) $ (6,004) $ 39,821 Amortization of preferred stock issuance costs — (42) Gain on preferred stock transactions 87,961 — Numerator for basic and diluted EPS - net income attributable to common stockholders 81,957 39,779 Denominator Weighted average common stock outstanding – basic 2,002,111 1,631,326 Weighted average common stock outstanding – diluted 2,162,378 1,631,326 Earnings (loss) per share of common stock – basic: Continuing operations - basic $ 37.83 $ (9.05) Discontinued operations - basic 3.11 33.43 Earnings per basic common share $ 40.94 $ 24.38 Earnings (loss) per share of common stock – diluted: Continuing operations - diluted $ 35.03 $ (9.05) Discontinued operations - diluted 2.87 33.43 Earnings per diluted common share $ 37.90 $ 24.38 |
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, 2021 2020 Numerator Reversal of amortization of preferred stock issuance costs $ — $ 42 Denominator Stock options — 7,609 Restricted stock — 67,616 Preferred stock, if converted — 200,000 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Feb. 17, 2022USD ($) | Jan. 06, 2022USD ($)investorshares | Aug. 27, 2021USD ($)shares | Feb. 17, 2021USD ($)shares | Feb. 03, 2020USD ($)$ / shares | Jan. 27, 2020 | Mar. 31, 2022USD ($) | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 29, 2016series_of_preferred_stockshares | May 26, 2016$ / shares |
Organization and Basis of Presentation [Line Items] | ||||||||||||||
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 | $ 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 | |||||||||||||
Loss contingency, damages awarded, number of business days to pay | 3 days | |||||||||||||
Preferred stock conversion | $ 95,014,000 | |||||||||||||
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 | $ 3,465,000 | $ 9,152,000 | ||||||||||||
Dividends declared and paid on preferred stock | 1,600,000 | |||||||||||||
Right-of-use lease assets | 825,000 | 656,000 | ||||||||||||
Lease liabilities | 859,000 | |||||||||||||
Cumulative-effect adjustment to retained earnings | (76,528,000) | (166,578,000) | $ (207,928,000) | |||||||||||
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 | |||||||||||||
Subsequent event | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Number of institutional investors in settlement agreement | investor | 2 | |||||||||||||
Additional Paid-in Capital | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Preferred stock conversion | $ 71,900,000 | 95,012,000 | ||||||||||||
Cumulative-effect adjustment to retained earnings | 143,523,000 | 46,574,000 | 44,646,000 | |||||||||||
Preferred stock | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Accounts payable and accrued liabilities | 12,000 | 11,000 | ||||||||||||
Retained Earnings | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Cumulative-effect adjustment to retained earnings | $ 57,450,000 | $ 63,426,000 | $ 23,662,000 | |||||||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Cumulative-effect adjustment to retained earnings | $ (100,000) | |||||||||||||
Luxor | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Damages sought | $ 150,000,000 | |||||||||||||
Altisource Asset Management Corporation v. Luxor Capital Group, LP | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Threshold period to request company to redeem shares (years) | 5 years | |||||||||||||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Forecast | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Gain related to litigation settlement | $ 5,100,000 | |||||||||||||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Loss contingency, damages awarded | 1,636,000 | |||||||||||||
Loss contingency, damages awarded, due on one-year anniversary of the effective date of the agreement | $ 1,227,000 | |||||||||||||
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | Subsequent event | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Loss contingency, damages awarded, due on one-year anniversary of the effective date of the agreement | $ 1,200,000 | |||||||||||||
Settlement Agreement with Wellington | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Litigation settlement, amount awarded to other party | $ 2,093,000 | |||||||||||||
Gain related to litigation settlement | 16,100,000 | |||||||||||||
Minimum | Luxor | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Damages sought | 144,212,000 | |||||||||||||
Minimum | Altisource Asset Management Corporation v. Luxor Capital Group, LP | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Threshold number of business days to give prior notice to redeem shares (days) | 15 days | |||||||||||||
Maximum | Altisource Asset Management Corporation v. Luxor Capital Group, LP | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Threshold number of business days to give prior notice to redeem shares (days) | 30 days | |||||||||||||
Series A Preferred Stock | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Preferred stock, liquidation preference | $ 250,000,000 | |||||||||||||
Series A Preferred Stock | Subsequent event | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Preferred stock, liquidation preference | $ 5,790,000 | |||||||||||||
Litigation settlement, shares awarded from other party (in shares) | shares | 5,788 | |||||||||||||
Series A Preferred Stock | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Subsequent event | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Litigation settlement, amount awarded to other party | $ 665,000 | |||||||||||||
Series A Preferred Stock | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Shares converted (in shares) | shares | 81,800 | |||||||||||||
Series A Preferred Stock | Settlement Agreement with Wellington | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Preferred stock, liquidation preference | $ 18,200,000 | |||||||||||||
Litigation settlement, shares awarded from other party (in shares) | shares | 18,200 | |||||||||||||
Common Stock | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Shares issued related to conversion of stock (in shares) | shares | 288,283 | |||||||||||||
Redeemable Preferred Stock | ||||||||||||||
Organization and Basis of Presentation [Line Items] | ||||||||||||||
Preferred stock, shares issued (in shares) | shares | 1,200 | 1,100 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)lease | |
Property, Plant and Equipment [Line Items] | |
Number of operating leases | lease | 2 |
Assets held for sale | $ 0 |
Liabilities held for sale | 0 |
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 - Addit
Discontinued Operations - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Aug. 17, 2020 | Dec. 31, 2021 | Aug. 13, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Receivable from Front Yard | $ 3,414,000 | $ 0 | ||
Termination Agreement | Affiliated entity | Common Stock | Front Yard | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of Front Yard shares acquired (in shares) | (2,923,166) | |||
Front Yard | Termination Agreement | Affiliated entity | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [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 | |||
Front Yard | Termination Agreement | Affiliated entity | Common Stock | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Receipt of deposit from Front Yard related to the Disposal Group | 5,000,000 | |||
Front Yard | Termination Agreement | Affiliated entity | River Business Solutions Private Limited | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate purchase price | $ 8,200,000 |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets held for sale: | ||
Total current assets held for sale | $ 0 | $ 894,000 |
Non-current assets held for sale: | ||
Total non-current assets held for sale | 0 | 1,979,000 |
Total assets held for sale | 0 | |
Current liabilities held for sale: | ||
Total current liabilities held for sale | 0 | 1,338,000 |
Non-current liabilities held for sale: | ||
Total non-current liabilities held for sale | 0 | 1,599,000 |
Total liabilities held for sale | 0 | |
Held-for-Sale | ||
Current assets held for sale: | ||
Cash and cash equivalents | 0 | 184,000 |
Prepaid expenses and other assets | 0 | 710,000 |
Total current assets held for sale | 0 | 894,000 |
Non-current assets held for sale: | ||
Right-of-use lease assets | 0 | 1,612,000 |
Other non-current assets | 0 | 367,000 |
Total non-current assets held for sale | 0 | 1,979,000 |
Total assets held for sale | 0 | 2,873,000 |
Current liabilities held for sale: | ||
Accrued salaries and employee benefits | 0 | 910,000 |
Accounts payable and accrued liabilities | 0 | 300,000 |
Short-term lease liabilities | 0 | 128,000 |
Total current liabilities held for sale | 0 | 1,338,000 |
Non-current liabilities held for sale: | ||
Non-current lease liabilities | 0 | 1,599,000 |
Total non-current liabilities held for sale | 0 | 1,599,000 |
Total liabilities held for sale | $ 0 | $ 2,937,000 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other income (loss) from discontinued operations: | ||
Income from operations related to Front Yard, net of tax | $ 0 | $ 54,643 |
Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 0 | 62,580 |
Expenses from discontinued operations: | ||
Salaries and employee benefits | 0 | 5,592 |
Legal and professional fees | 0 | 256 |
General and administrative | 0 | 1,521 |
Total expenses from discontinued operations | 0 | 7,369 |
Other income (loss) from discontinued operations: | ||
Gain on disposal | 7,485 | 0 |
Total other income (loss) from discontinued operations | 0 | 20 |
Total other income (loss) from discontinued operations | 7,485 | 20 |
Net income from discontinued operations before income taxes | 7,485 | 55,231 |
Loss on disposal of discontinued operations before income taxes | 0 | 102 |
Income tax expense | 1,272 | 588 |
Income from operations related to Front Yard, net of tax | 6,213 | 54,541 |
Management fees from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 0 | 13,713 |
Termination fee from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | 0 | 46,000 |
Expense reimbursements from Front Yard | Discontinued Operations | ||
Revenues from discontinued operations: | ||
Total revenues from discontinued operations | $ 0 | $ 2,867 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Total operating cash flows from discontinued operations | $ 5,439 | $ 37,798 |
Total investing cash flows from discontinued operations | 511 | 3,643 |
Total financing cash flows (used in) from discontinued operations | $ 80 | $ (1,010) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | $ 0 | $ 47,355 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Front Yard common stock | 47,355 | |
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 | |
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 | |
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 | |
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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | Jan. 11, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Holdings [Line Items] | |||
Proceeds from sale of interest in equity securities | $ 152,796,000 | $ 0 | |
Common Stock | |||
Investment Holdings [Line Items] | |||
Shares held of Front Yard (in shares) | 0 | 2,923,000 | |
Investment owned, shares sold (in shares) | 2,923,000 | ||
Proceeds from sale of interest in equity securities | $ 47,500,000 | ||
Common Stock | Front Yard | |||
Investment Holdings [Line Items] | |||
Shares held of Front Yard (in shares) | 2,923,166 | ||
Investment owned, ownership percentage | 4.90% | ||
Investment owned, number of shares acquired through open market transactions (in shares) | 1,624,465 | ||
Number of Front Yard shares acquired (in shares) | 1,298,701 | ||
Investment owned, shares sold (in shares) | 2,923,166 | ||
Equity Securities | |||
Investment Holdings [Line Items] | |||
Shares held of Front Yard (in shares) | 0 | 0 | |
Investment owned, shares sold (in shares) | 8,123,000 | ||
Proceeds from sale of interest in equity securities | $ 105,300,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Investment Gains/Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | ||
Investment gains on securities sold during the period | $ 8,347 | $ 0 |
Total change in fair value | 8,493 | (6,270) |
Equity Securities | ||
Gain (Loss) on Securities [Line Items] | ||
Investment gains on securities sold during the period | 8,347 | 0 |
Total change in fair value | 8,347 | 0 |
Common Stock | ||
Gain (Loss) on Securities [Line Items] | ||
Change in unrealized losses during the period on securities held at the end of the end of the period | 0 | (6,270) |
Investment gains on securities sold during the period | 146 | 0 |
Total change in fair value | $ 146 | $ (6,270) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Common Stock and Equity Securities Activity (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Basis | ||
Purchased | $ 96,950 | $ 0 |
Common Stock | ||
Shares | ||
Beginning balance (in shares) | 2,923 | |
Purchased (in shares) | 0 | |
Sold (in shares) | (2,923) | |
Ending balance (in shares) | 0 | 2,923 |
Basis | ||
Beginning balance | $ 41,635 | |
Purchased | 0 | |
Sold | (41,635) | |
Ending balance | $ 0 | $ 41,635 |
Equity Securities | ||
Shares | ||
Beginning balance (in shares) | 0 | |
Purchased (in shares) | 8,123 | |
Sold (in shares) | (8,123) | |
Ending balance (in shares) | 0 | 0 |
Basis | ||
Beginning balance | $ 0 | |
Purchased | 96,950 | |
Sold | (96,950) | |
Ending balance | $ 0 | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Cost Basis, Fair Value, and Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Front Yard common stock | $ 0 | $ 47,355 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 0 | 41,635 |
Gross Unrealized Gains | 5,720 | |
Gross Unrealized Losses | 0 | |
Front Yard common stock | $ 47,355 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 5 years 1 month 6 days | 7 years 6 months |
Operating lease, discount rate | 7.00% | 7.00% |
Operating lease cost | $ 200,000 | $ 700,000 |
Short-term lease cost | $ 0 | $ 100,000 |
Leases - Maturity Analysis (Det
Leases - Maturity Analysis (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Lease Liabilities | |
2022 | $ 194 |
2023 | 204 |
2024 | 209 |
2025 | 206 |
2026 | 131 |
Thereafter | 76 |
Total lease payments | 1,020 |
Less: interest | 161 |
Lease liabilities | $ 859 |
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 |
Incentive Compensation and Sh_3
Incentive Compensation and Share-based Payments - Long-Term Incentive Compensation (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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) - USD ($) $ / shares in Units, $ in Thousands | Jul. 21, 2021 | Jul. 18, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation | $ 21 | $ 216 | ||
Number of Options | ||||
Beginning balance (in shares) | 67,225 | 15,256 | ||
Granted (in shares) | 0 | 60,000 | ||
Exercised (in shares) | (8,031) | |||
Forfeited/expired (in shares) | (61,375) | |||
Ending balance (in shares) | 5,850 | 67,225 | ||
Weighted Average Exercise Price per Share | ||||
Beginning balance (in USD per share) | $ 12.13 | $ 2.77 | ||
Granted (in USD per share) | 12.87 | 13.11 | ||
Exercised (in USD per share) | 1.66 | |||
Forfeited/expired (in USD per share) | 12.87 | |||
Ending balance (in USD per share) | 4.36 | $ 12.13 | ||
Intrinsic value of stock options exercised | $ 100 | |||
Weighted average grant date fair value of grants in period (in USD per share) | $ 10.61 | |||
Exercise price (in USD per share) | $ 12.87 | $ 13.11 | ||
Stock options expired (in shares) | 375 | 1,000 | ||
Stock options outstanding (in shares) | 5,850 | 67,225 | ||
Stock options outstanding, weighted average remaining life | 2 months 12 days | |||
Weighted average exercise price of exercisable options (in USD per share) | $ 4.36 | $ 4.01 | ||
Stock options outstanding, intrinsic value | $ 100 | |||
Number of exercisable options (in shares) | 7,225 | |||
Weighted average remaining life of exercisable options (in years) | 1 year 1 month 6 days | |||
Intrinsic value of exercisable options | $ 100 |
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, 2021USD ($)installment$ / sharesshares | Dec. 31, 2020USD ($)installment$ / sharesshares | |
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Share-based compensation | $ | $ 21,000 | $ 216,000 |
Restricted stock | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Number of shares granted (in shares) | shares | 97,907 | 78,622 |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 25.77 | $ 14.75 |
Forfeited (in shares) | shares | 50,000 | |
Weighted average grant date fair value of shares forfeited (in USD per share) | $ / shares | $ 14.35 | |
Share-based compensation | $ | $ 1,800,000 | $ 1,700,000 |
Unrecognized stock compensation | $ | $ 300,000 | $ 1,000,000 |
Weighted average remaining amortization period of unamortized share based compensation (in years) | 1 year 2 months 12 days | 10 months 24 days |
Restricted stock | Management | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Number of shares granted (in shares) | shares | 90,671 | 70,000 |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 13.99 | |
Number of annual installments | installment | 3 | 3 |
Forfeited (in shares) | shares | 50,000 | |
Weighted average grant date fair value of shares forfeited (in USD per share) | $ / shares | $ 14.35 | |
Restricted stock | Management | Vesting tranche one | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Number of shares granted (in shares) | shares | 82,671 | |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 26.25 | |
Restricted stock | Management | Vesting tranche two | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Number of shares granted (in shares) | shares | 8,000 | |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 21.58 | |
Restricted stock | Directors | ||
Share-based compensation arrangement by share-based payment award [Line Items] | ||
Number of shares granted (in shares) | shares | 7,236 | 8,622 |
Weighted average grant date fair value of grants in period (in USD per share) | $ / shares | $ 24.88 | $ 20.87 |
Value of restricted stock granted to directors annually | $ | $ 60,000 | |
Restricted stock, service period | 1 year | |
Director attendance requirement | 75.00% |
Incentive Compensation and Sh_7
Incentive Compensation and Share-based Payments - Schedule of Restricted Stock Activity (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Beginning balance (in shares) | 129,380 | 111,757 | |
Granted (in shares) | 97,907 | 78,622 | |
Vested (in shares) | (162,051) | (60,999) | |
Forfeited (in shares) | (50,000) | ||
Ending balance (in shares) | 15,236 | 129,380 | 111,757 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 23.15 | $ 24.32 | $ 54.18 |
Granted (in USD per share) | 25.77 | 14.75 | |
Vested (usd per share) | 14.50 | 66.70 | |
Forfeited/expired (in USD per share) | 14.35 | ||
Ending balance (in USD per share) | $ 23.15 | $ 24.32 | $ 54.18 |
Vesting date fair value of restricted stock that vested | $ 2.1 | $ 1.1 | $ 0.9 |
Incentive Compensation and Sh_8
Incentive Compensation and Share-based Payments - Schedule of Shares Reserved for Future Issuance (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | |||
Stock options outstanding (in shares) | 5,850 | 67,225 | 15,256 |
Possible future issuances under equity incentive plan (in shares) | 122,288 | ||
Common stock reserved for future issuance (in shares) | 128,138 | ||
Common stock, shares available to be issued under charter (in shares) | 1,583,459 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax exemption, percentage | 90.00% | 90.00% |
Cumulative loss position, duration | 3 years | |
Increase in valuation allowance | $ 429,000 | |
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, 2021 | Dec. 31, 2020 | |
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | $ (8,944) | $ (13,951) |
U.S. Virgin Islands | ||
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | (8,879) | (15,841) |
Other | ||
Schedule of income by jurisdiction [Line Items] | ||
Income (loss) before income taxes | $ (65) | $ 1,890 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Federal | $ 4,378 | $ (1,002) |
State | 0 | 0 |
International | 203 | (183) |
Total current tax (benefit) expense | 4,581 | (1,185) |
Deferred | ||
Federal | (1,281) | 1,420 |
State | 0 | 0 |
International | (27) | 534 |
Total deferred tax expense (benefit) | (1,308) | 1,954 |
Income tax expense | $ 3,273 | $ 769 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Stock compensation | $ 2 | $ 64 |
Accrued expenses | 24 | 171 |
Net operating losses | 637 | 285 |
Lease liabilities | 14 | 491 |
Other | 1 | 44 |
Gross deferred tax assets | 678 | 1,055 |
Deferred tax liability: | ||
Right-of-use lease assets | 13 | 459 |
Investments | 0 | 1,547 |
Depreciation | 0 | 2 |
Other | 0 | 5 |
Gross deferred tax liabilities | 13 | 2,013 |
Net deferred tax (liability) asset before valuation allowance | 665 | (958) |
Valuation allowance | (498) | (69) |
Deferred tax asset, net | $ 167 | |
Deferred tax liability, net | $ (1,027) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. Virgin Islands income tax rate | 23.10% | 23.10% |
State and local income tax rates | 0.00% | (0.10%) |
EDC benefits in the USVI | (48.20%) | (33.00%) |
Foreign tax rate differential | (0.20%) | (0.20%) |
Subpart F income | (18.50%) | 0.00% |
Permanent and other | (1.60%) | (1.50%) |
Share-based compensation | (0.20%) | (0.50%) |
Valuation allowance | (4.80%) | (1.10%) |
Foreign Tax Credit | 13.60% | 0.00% |
Other Adjustments / Rate difference on US NOL carryback | 0.00% | 7.90% |
Effective income tax rate | (36.80%) | (5.40%) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Components of Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | ||
Net loss from continuing operations | $ (12,217) | $ (14,720) |
Amortization of preferred stock issuance costs | 0 | (42) |
Gain on preferred stock transaction | 87,961 | 0 |
Numerator for basic and diluted EPS from continuing operations – net income (loss) from continuing operations attributable to common stockholders | 75,744 | (14,762) |
Net income from discontinued operations | 6,213 | 54,541 |
Net income (loss) | (6,004) | 39,821 |
Numerator for diluted EPS - (loss) income available to common stockholders after assumed conversions | $ 81,957 | $ 39,779 |
Denominator | ||
Weighted average common stock outstanding – basic (in shares) | 2,002,111 | 1,631,326 |
Weighted average common stock outstanding – diluted (in shares) | 2,162,378 | 1,631,326 |
Earnings (loss) per share of common stock – basic: | ||
Continuing operations - basic ( in USD per share) | $ 37.83 | $ (9.05) |
Discontinued operations - basic (in USD per share) | 3.11 | 33.43 |
Earnings (loss) per basic common share (in USD per share) | 40.94 | 24.38 |
Earnings (loss) per share of common stock – diluted: | ||
Continuing operations - diluted (in USD per share) | 35.03 | (9.05) |
Discontinued operations - diluted (in USD per share) | 2.87 | 33.43 |
Earnings (loss) per diluted common share (in USD per share) | $ 37.90 | $ 24.38 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | ||
Reversal of amortization of preferred stock issuance costs | $ 0 | $ 42 |
Stock options | ||
Denominator | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 7,609 |
Restricted stock | ||
Denominator | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 67,616 |
Preferred stock | ||
Denominator | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 200,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 31, 2022 | Feb. 17, 2022 | Feb. 17, 2021 |
Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | |||
Subsequent Event [Line Items] | |||
Loss contingency, damages awarded, due on one-year anniversary of the effective date of the agreement | $ 1,227,000 | ||
Subsequent event | |||
Subsequent Event [Line Items] | |||
Committed capital | $ 40,000,000 | ||
Financing receivables, acquired | 18,500,000 | ||
Financing receivable under evaluation for acquisition | 9,200,000 | ||
Financing receivables, acquired and under evaluation for acquisition | $ 27,700,000 | ||
Subsequent event | Luxor Capital Group, LP, et al. v. Altisource Asset Management Corporation | Putnam | |||
Subsequent Event [Line Items] | |||
Loss contingency, damages awarded, due on one-year anniversary of the effective date of the agreement | $ 1,200,000 |