NexPoint Residential Trust(NXRT) - 2024 Q1 - Quarterly Report

Cautionary Statement Regarding Forward-Looking Statements Forward-looking statements are subject to risks and uncertainties, with actual results potentially differing materially - The report contains forward-looking statements subject to risks and uncertainties, including those related to liquidity, capital resources, property performance, and future financial performance[8] - Actual results may vary materially from projections due to known and unknown risks, trends, uncertainties, and factors beyond the company's control[9] - Key risks include unfavorable market and economic conditions, macroeconomic trends (inflation, high interest rates), real estate ownership risks, limited asset disposal ability, geographic concentration, and competition[10] PART I—FINANCIAL INFORMATION This part presents unaudited consolidated financial statements and management's discussion of financial condition and results Item 1. Financial Statements Unaudited consolidated financial statements for Q1 2024, including balance sheets, operations, equity, cash flows, and notes Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity, for Q1 2024 and year-end 2023 Consolidated Balance Sheets | Metric | March 31, 2024 (Unaudited) | December 31, 2023 | | :-------------------------------- | :--------------------------- | :------------------ | | Total Assets (in thousands) | $2,042,686 | $2,107,645 | | Total Liabilities (in thousands) | $1,524,825 | $1,607,775 | | Total Stockholders' Equity (in thousands) | $512,779 | $494,624 | - Total Assets decreased by $64,959 thousand (3.1%) from December 31, 2023, to March 31, 2024[17] - Total Liabilities decreased by $82,950 thousand (5.2%) from December 31, 2023, to March 31, 2024[17] Consolidated Statements of Operations and Comprehensive Income (Loss) This section presents the company's operational performance and comprehensive income (loss) for Q1 2024 and Q1 2023 Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric (in thousands, except per share) | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Total revenues | $67,577 | $69,227 | $(1,650) | -2.4% | | Total expenses | $58,295 | $56,105 | $2,190 | 3.9% | | Operating income before gain on sales of real estate | $9,282 | $13,122 | $(3,840) | -29.3% | | Gain on sales of real estate | $31,709 | $0 | $31,709 | N/A | | Operating income | $40,991 | $13,122 | $27,869 | 212.4% | | Net income (loss) attributable to common stockholders | $26,298 | $(3,883) | $30,181 | N/M | | Earnings (loss) per share - diluted | $1.00 | $(0.15) | $1.15 | N/M | - Net income attributable to common stockholders significantly improved from a loss of $(3,883) thousand in Q1 2023 to a gain of $26,298 thousand in Q1 2024, primarily driven by a $31.7 million gain on real estate sales[19][124] Consolidated Statements of Stockholders' Equity This section outlines changes in the company's stockholders' equity for the three months ended March 31, 2024 and 2023 Consolidated Statements of Stockholders' Equity | Metric (in thousands) | December 31, 2023 | March 31, 2024 | | :-------------------------------------- | :------------------ | :------------- | | Total Stockholders' Equity | $494,624 | $512,779 | | Net income attributable to common stockholders | N/A | $26,298 | | Common stock dividends declared | N/A | $(12,280) | | Other comprehensive income | N/A | $2,672 | - Total Stockholders' Equity increased by $18,155 thousand from December 31, 2023, to March 31, 2024, primarily due to net income and other comprehensive income, partially offset by common stock dividends declared[23] Consolidated Statements of Cash Flows This section details the company's cash inflows and outflows from operating, investing, and financing activities for Q1 2024 and Q1 2023 Selected Cash Flow Data | Cash Flow Activity (in thousands) | Q1 2024 | Q1 2023 | Change ($) | | :-------------------------------- | :------ | :------ | :--------- | | Net cash provided by operating activities | $19,687 | $27,923 | $(8,236) | | Net cash provided by (used in) investing activities | $94,169 | $(16,505) | $110,674 | | Net cash used in financing activities | $(90,386) | $(16,142) | $(74,244) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $23,470 | $(4,724) | $28,194 | - Net cash provided by investing activities significantly increased by $110.7 million YoY, primarily due to $102.7 million in net proceeds from sales of real estate in Q1 2024[25][177] - Net cash used in financing activities increased by $74.2 million YoY, mainly due to higher mortgage and credit facility payments[25][178] Notes to Consolidated Unaudited Financial Statements This section provides detailed explanatory notes supporting the consolidated unaudited financial statements 1. Organization and Description of Business This section describes NexPoint Residential Trust, Inc.'s business, investment focus, and management structure - NexPoint Residential Trust, Inc. (NXRT) is a Maryland REIT focused on "value-add" multifamily investments primarily in the Southeastern and Southwestern United States[29][31] - The company is externally managed by NexPoint Real Estate Advisors, L.P. (the "Adviser") through an Advisory Agreement renewed on February 26, 2024, for a one-year term[30] - Investment objectives include maximizing cash flow and property value, acquiring properties with growth potential, providing quarterly cash distributions, and achieving long-term capital appreciation[31] 2. Summary of Significant Accounting Policies This section outlines the key accounting principles and estimates used in preparing the financial statements - Real estate assets are reviewed for impairment based on estimated future cash flows and liquidation value; no impairment loss was recorded as of March 31, 2024[35] - Two properties were classified as held for sale as of March 31, 2024, down from three at December 31, 2023[36] - The company has applied ASC 848 elections for reference rate reform (LIBOR to SOFR transition) and is evaluating ASU 2023-07 on segment reporting[37][38] 3. Real Estate Investments This section provides details on the company's real estate acquisitions, dispositions, and casualty events - No real estate acquisitions occurred during the three months ended March 31, 2024, or 2023[39] Property Disposition (Q1 2024) | Property Name | Location | Date of Sale | Sales Price (in thousands) | Net Cash Proceeds (in thousands) | Gain on Sale (in thousands) | | :------------ | :------- | :----------- | :------------------------- | :------------------------------- | :-------------------------- | | Old Farm | Houston, Texas | March 1, 2024 | $103,000 | $102,704 | $31,709 | - The company recognized a $0.2 million casualty gain in Q1 2024, compared to a $0.8 million casualty loss in Q1 2023, with down units due to casualty events decreasing from 107 to 23[43][44] 4. Debt This section details the company's mortgage debt, credit facility, and scheduled debt maturities Mortgage Debt Summary | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Mortgages payable, net (in thousands) | $1,454,101 | $1,453,787 | | Weighted average interest rate | 6.874% | 6.900% | | Adjusted weighted average interest rate (with swaps) | 3.470% | N/A | - The company paid down $24.0 million on the Corporate Credit Facility during Q1 2024, resulting in $0.0 million outstanding as of March 31, 2024, with $350.0 million available for borrowing[50] Scheduled Debt Maturities (in thousands) | Year | Operating Properties | Held For Sale Properties | Credit Facility | Total | | :--- | :------------------- | :----------------------- | :-------------- | :------ | | 2024 | $222 | $15,274 | $0 | $15,496 | | 2025 | $133,386 | $20,000 | $0 | $153,386 | | 2026 | $290,324 | $0 | $0 | $290,324 | 5. Fair Value of Derivatives and Financial Instruments This section provides information on the fair value of the company's derivative instruments and other financial instruments Interest Rate Swaps (as of March 31, 2024) | Notional Amount (in thousands) | Weighted Average Fixed Rate | | :----------------------------- | :-------------------------- | | $1,167,500 | 1.0682% | Interest Rate Caps (as of March 31, 2024) | Notional Amount (in thousands) | Weighted Average Strike Rate | | :----------------------------- | :--------------------------- | | $1,340,080 | 5.90% | - Interest rate products designated as hedges recognized a gain of $15,590 thousand in OCI and reclassified a gain of $12,907 thousand into interest expense for Q1 2024, while non-designated derivatives resulted in a loss of $(626) thousand in interest expense[62] 6. Stockholders' Equity This section details the company's common stock, share repurchase program, and equity-based compensation - As of March 31, 2024, there were 25,774,730 shares of common stock issued and outstanding[67] - No share repurchases were made during Q1 2024 or Q1 2023; since inception, 2,550,628 shares have been repurchased for approximately $72.4 million at an average cost of $28.36 per share[70] - Unrecognized compensation expense on restricted awards totaled approximately $30.0 million as of March 31, 2024, over a weighted average vesting period of 2.3 years[74] 7. Earnings (Loss) Per Share This section presents the calculation of basic and diluted earnings (loss) per share for Q1 2024 and Q1 2023 Earnings (Loss) Per Share | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Net income (loss) attributable to common stockholders (in thousands) | $26,298 | $(3,883) | | Weighted average common shares outstanding - basic (in thousands) | 25,721 | 25,599 | | Earnings (loss) per share - basic | $1.02 | $(0.15) | | Earnings (loss) per share - diluted | $1.00 | $(0.15) | - Diluted EPS improved significantly from a loss of $(0.15) in Q1 2023 to a gain of $1.00 in Q1 2024[80] 8. Noncontrolling Interests This section details redeemable noncontrolling interests and fees paid to affiliates for property management and construction supervision Redeemable Noncontrolling Interests in the OP (in thousands) | Metric | December 31, 2023 | March 31, 2024 | | :-------------------------------------- | :------------------ | :------------- | | Redeemable noncontrolling interests in the OP | $5,246 | $5,082 | Fees and Reimbursements to BH and its Affiliates (in thousands) | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Property management fees | $1,943 | $2,019 | | Construction supervision fees | $159 | $651 | | Payroll and benefits reimbursements | $4,833 | $5,451 | 9. Related Party Transactions This section outlines transactions with related parties, including advisory fees, property sales, and service expenses Advisory and Administrative Fees (in thousands) | Metric | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Advisory and administrative fees incurred | $1,743 | $1,889 | | Voluntarily waived fees | $5,500 | $5,300 | - The company sold membership interests of NXRTBH Old Farm, LLC to NexBank Capital (a related party) for $103 million on March 1, 2024, recognizing a gain on deconsolidation of $31.7 million[94][95] - Incurred $0.7 million in expenses for fiber internet service from NLMF Leaseco, LLC (an affiliate) in Q1 2024, up from $0.6 million in Q1 2023[93] 10. Commitments and Contingencies This section addresses potential future funding requirements, litigation, environmental liabilities, and self-insurance policies - Potential additional funding requirements for NLMF Holdco, LLC are expected to be no more than $4.0 million[98] - Management is not aware of any material litigation or environmental liabilities as of March 31, 2024[99][100] - The company has a self-insurance policy with a 2023 aggregate amount of $2.95 million, with approximately $2.1 million allocated to the company, of which $1.8 million was prepaid as of March 31, 2024[102] 11. Subsequent Events This section reports significant events that occurred after the balance sheet date, including dividends and property sales - A quarterly dividend of $0.46242 per share was approved on April 29, 2024, payable on June 28, 2024[103] - Radbourne Lake was sold on April 30, 2024, for approximately $39.3 million[104] - Since March 31, 2024, the company purchased 269,408 shares of common stock for approximately $8.6 million at an average price of $31.76 per share[105] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition, results of operations, liquidity, and capital resources for Q1 2024 versus Q1 2023 Overview This section provides a general overview of the company's portfolio, REIT status, and the current macroeconomic environment - As of March 31, 2024, the portfolio consisted of 37 multifamily properties (13,399 units) in the Southeastern and Southwestern U.S., 94.6% leased, with a weighted average monthly effective rent of $1,511 per occupied unit[108] - The company has elected to be taxed as a REIT and intends to continue to qualify, requiring distribution of at least 90% of its REIT taxable income[110] - The macroeconomic environment remains challenging due to rising interest rates and limited credit availability for commercial real estate, impacting financing for acquisitions and asset sales[111] Components of Our Revenues and Expenses This section outlines the primary sources of the company's revenues and the key categories of its operating and non-operating expenses - Primary revenues are rental income from multifamily properties (including utility reimbursements, late fees, pet fees) and other income (non-refundable fees, application fees, laundry, cable TV)[113][114] - Key expenses include property operating expenses, real estate taxes and insurance, property management fees, advisory and administrative fees, corporate general and administrative expenses, property general and administrative expenses, and depreciation and amortization[115][116][117][118] - Other income and expenses include interest expense, gain/loss on extinguishment of debt, casualty gain/loss, miscellaneous income (business interruption proceeds), and gain on sales of real estate[119][120][121][122][123] Results of Operations for the Three Months Ended March 31, 2024 and 2023 This section analyzes the company's financial performance, including revenues, expenses, and net income, for Q1 2024 compared to Q1 2023 Summary of Operating Results (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Total revenues | $67,577 | $69,227 | $(1,650) | -2.4% | | Total expenses | $58,295 | $56,105 | $2,190 | 3.9% | | Operating income | $40,991 | $13,122 | $27,869 | 212.4% | | Net income (loss) attributable to common stockholders | $26,298 | $(3,883) | $30,181 | N/M | | Interest expense | $(14,391) | $(16,739) | $2,348 | -14.0% | - The significant increase in net income is primarily due to a $31.7 million gain on sales of real estate in Q1 2024[124] - Interest expense decreased by $2.3 million YoY, primarily due to interest rate swaps and caps gains offsetting increased interest on debt[135] Non-GAAP Measurements This section defines and reconciles non-GAAP financial measures, including NOI, FFO, Core FFO, and AFFO, providing a supplemental view of performance Net Operating Income and Same Store Net Operating Income This section defines Net Operating Income (NOI) and Same Store NOI as non-GAAP measures for evaluating property performance - NOI is a non-GAAP measure used to evaluate property performance, adjusting net income (loss) by adding back interest expense, advisory and administrative fees, depreciation and amortization, gains/losses from real estate sales, corporate G&A, and other specific gains/losses[139] - Same Store NOI measures the operating performance of properties owned for the entirety of current and comparable periods, eliminating variations caused by acquisitions or dispositions[143] NOI and Same Store NOI for the Three Months Ended March 31, 2024 and 2023 This section presents and analyzes the Net Operating Income (NOI) and Same Store NOI for Q1 2024 and Q1 2023 NOI and Same Store NOI (in thousands) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | NOI | $41,089 | $41,130 | $(41) | -0.1% | | Same Store NOI | $39,216 | $37,691 | $1,525 | 4.0% | | Same Store revenues | $63,396 | $61,186 | $2,210 | 3.6% | | Same Store operating expenses | $24,288 | $23,848 | $440 | 1.8% | - Same Store rental income increased by $2.1 million (3.6%) YoY, partially offset by a 0.4% decrease in weighted average monthly effective rent per occupied unit, and a 0.3% increase in occupancy[153] FFO, Core FFO and AFFO This section presents and analyzes the company's Funds From Operations (FFO), Core FFO, and Adjusted Funds From Operations (AFFO) FFO, Core FFO, and AFFO (in thousands, except per share) | Metric | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | FFO attributable to common stockholders | $18,941 | $19,295 | $(354) | -1.8% | | Core FFO attributable to common stockholders | $19,649 | $18,613 | $1,036 | 5.6% | | AFFO attributable to common stockholders | $22,571 | $21,007 | $1,564 | 7.4% | | Dividends declared per common share | $0.46242 | $0.42 | $0.04242 | 10.1% | - Core FFO increased by $1.0 million (5.6%) YoY, primarily due to a decrease in casualty loss[169] - AFFO increased by $1.6 million (7.4%) YoY, driven by an increase in Core FFO and equity-based compensation expense[170] Liquidity and Capital Resources This section discusses the company's ability to meet short-term and long-term financial obligations and fund its operations - Short-term liquidity requirements are met through net cash from operations, existing cash balances, and unused capacity on the Corporate Credit Facility, with $2.9 million in renovation value-add reserves available[171] - Long-term liquidity is expected from debt or equity issuances, working capital, operating cash flows, long-term mortgage indebtedness, and property dispositions[172] - The company must distribute at least 90% of its REIT taxable income annually to maintain REIT status, limiting retained earnings for capital expenditures and acquisitions[173] Cash Flows This section analyzes the company's cash flows from operating, investing, and financing activities for Q1 2024 and Q1 2023 Selected Cash Flow Data (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Net cash provided by operating activities | $19,687 | $27,923 | | Net cash provided by (used in) investing activities | $94,169 | $(16,505) | | Net cash used in financing activities | $(90,386) | $(16,142) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $23,470 | $(4,724) | - Net cash provided by investing activities increased significantly by $110.7 million YoY, primarily due to an increase in net proceeds from sales of real estate[177] - Net cash used in financing activities increased by $74.2 million YoY, mainly due to a net decrease in debt[178] Real Estate Investments Statistics This section provides key statistical data on the company's multifamily property portfolio, including unit count, occupancy, and rent - As of March 31, 2024, the company was invested in 37 multifamily properties with a total of 13,399 units[180][181] Portfolio Statistics | Metric | March 31, 2024 | December 31, 2023 | | :-------------------------------------- | :------------- | :---------------- | | Weighted Average Monthly Effective Rent Per Unit | $1,450 (approx.) | $1,460 (approx.) | | Weighted Average % Occupied | 94.3% (approx.) | 93.5% (approx.) | - The portfolio includes 23 down units due to casualty events as of March 31, 2024[181] Debt, Derivatives and Hedging Activity This section details the company's mortgage debt, interest rate derivatives, and hedging strategies to manage interest rate risk - As of March 31, 2024, the company had approximately $1.5 billion in mortgage debt outstanding with a weighted average interest rate of 6.874%, adjusted to 3.470% with interest rate swaps[183] - Interest rate swap agreements effectively covered 79.7% of the floating rate debt outstanding ($1.2 billion notional amount) at a weighted average fixed rate of 1.0682%[184][192] - Interest rate cap agreements covered $1.3 billion of floating rate mortgage debt, capping the SOFR rate at a weighted average of 5.905%[185] - The Corporate Credit Facility had $0.0 million outstanding as of March 31, 2024, with $309.0 million available for borrowing, maturing on June 30, 2025[190] Obligations and Commitments This section outlines the company's contractual obligations and commitments, including mortgage debt and advisory agreements Contractual Obligations and Commitments (in thousands) | Year | Total | Operating Properties Mortgage Debt (Principal) | Operating Properties Mortgage Debt (Interest) | Held For Sale Property Mortgage Debt (Principal) | Held For Sale Property Mortgage Debt (Interest) | Credit Facility (Interest) | | :--- | :---- | :--------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :------------------------- | | 2024 | $42,342 | $222 | $24,907 | $15,274 | $1,271 | $668 | | 2025 | $200,992 | $133,386 | $46,288 | $20,000 | $871 | $447 | | 2026 | $330,414 | $290,324 | $40,090 | $0 | $0 | $0 | - The Advisory Agreement requires an annual advisory and administrative fee of 1.2% of Average Real Estate Assets, with a $5.4 million cap on Contributed Assets[200] - The agreement with NLMF Holdco, LLC may result in additional funding requirements up to $4.0 million for future project costs[201] Capital Expenditures and Value-Add Program This section details the company's expenditures on property renovations and its value-add program activities Rehab Expenditures (in thousands) | Type | Q1 2024 | Q1 2023 | | :-------------------------------------- | :------ | :------ | | Interior | $1,730 | $7,309 | | Exterior and common area | $474 | $4,007 | | Total rehab expenditures | $2,204 | $11,316 | - Total rehab expenditures decreased significantly from $11.3 million in Q1 2023 to $2.2 million in Q1 2024[202] - 127 full and partial interior rehabs were completed in Q1 2024, compared to 690 units in Q1 2023[202] Income Taxes This section discusses the company's REIT tax status, distribution requirements, and tax-related disclosures - The company anticipates continuing to qualify as a REIT, requiring distribution of at least 90% of its annual REIT taxable income to stockholders[203][209] - No significant taxes were associated with the Taxable REIT Subsidiary (TRS) for the three months ended March 31, 2024, and 2023[203][219] - No material unrecognized tax benefit or expense, accrued interest, or penalties were reported as of March 31, 2024[208] Dividends This section outlines the company's dividend policy and recent dividend declarations to common stockholders - The company intends to make regular quarterly dividend payments to common stockholders[209] - The first quarterly dividend of 2024 was $0.46242 per share, declared on February 15, 2024, and paid on March 28, 2024[210] Off-Balance Sheet Arrangements This section confirms the absence of any off-balance sheet arrangements as of the reporting dates - As of March 31, 2024, and December 31, 2023, the company had no off-balance sheet arrangements[211] Critical Accounting Policies and Estimates This section highlights the significant accounting policies and estimates that require management's judgment and impact financial reporting - Purchase price for asset acquisitions is allocated to land, buildings, improvements, and intangible lease assets based on relative fair value, using Level 3 inputs[214][215] - Real estate assets are reviewed for impairment based on estimated future cash flows and liquidation value; no impairment was recorded as of March 31, 2024[216] - Inflation is not expected to materially affect results due to short-term leases and protection provisions for utilities, with risks mitigated by fixed interest rate loans and hedges[217][218] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section discusses the company's exposure to market risks, primarily interest rate risk on its indebtedness and counterparty credit risk on derivatives - Primary market risk exposure is interest rate risk on $1.5 billion of floating rate indebtedness and counterparty credit risk on interest rate derivatives[221] - 79.7% of floating rate debt ($1.2 billion notional) is effectively fixed by interest rate swap agreements at a weighted average fixed rate of 1.0682%[221][223] - Interest rate cap agreements effectively cap SOFR on $1.3 billion of floating rate mortgage debt at a weighted average rate of 5.90%[222] Annual Increase to Interest Expense from SOFR Change (in thousands) | Change in Interest Rates | Annual Increase to Interest Expense | | :----------------------- | :---------------------------------- | | 0.25% | $692 | | 0.50% | $1,385 | | 0.75% | $2,077 | | 1.00% | $2,770 | Item 4. Controls and Procedures This section confirms the effectiveness of the company's disclosure controls and procedures and the absence of material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2024, providing reasonable assurance for timely and accurate reporting[227] - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2024[229] PART II—OTHER INFORMATION This part includes information on legal proceedings, risk factors, equity sales, defaults, and exhibits Item 1. Legal Proceedings The company is not aware of any legal proceedings that are reasonably likely to have a material adverse effect on its operations or financial condition - Management is not aware of any material legal proceedings or threats of litigation that would adversely affect the company's financial condition or results of operations[232] Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K filed on February 27, 2024 - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K[233] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities. This section details the company's share repurchase program, noting no repurchases were made during Q1 2024, but providing historical data and remaining authorization - No shares were repurchased under the Share Repurchase Program during the three months ended March 31, 2024[234] Share Repurchase Program Summary (as of March 31, 2024) | Metric | Value | | :-------------------------------------- | :------ | | Total shares repurchased since inception | 2,550,628 | | Average price paid per share | $28.36 | | Total cost of repurchases | $72.4 million | | Approximate dollar value remaining under authorization | $100.0 million | Item 3. Defaults Upon Senior Securities The company reported no defaults upon senior securities - No defaults upon senior securities were reported[235] Item 4. Mine Safety Disclosures This item is not applicable to the company - This item is not applicable to the company[237] Item 5. Other Information The company reported no other information - No other information was reported[238] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including forms of restricted stock unit agreements, certifications, and XBRL-related documents - The report includes various exhibits such as Restricted Stock Units Agreements, CEO and CFO certifications (31.1, 31.2, 32.1), and Inline XBRL documents[241] Signatures This section contains the official signatures of the company's authorized officers, attesting to the report's accuracy - The report was signed by Jim Dondero, President and Director, and Brian Mitts, Chief Financial Officer and Director, on May 02, 2024[246]