Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 16 - Subsequent Events

Except as set forth below, no subsequent events were identified through the date of issuance.

Coronavirus pandemic ("COVID-19")

COVID-19 continues to have a real-time impact on all business sectors. The extent of the ultimate impact of COVID-19 on the Company's operational and financial performance will depend on various developments, including the duration of the outbreak and the spread of the virus and the federal government's and states' future responses to the virus, which cannot be reasonably predicted at this time. While the Company is not able to estimate the future impact of COVID-19 at this time, it could continue to materially affect the Company’s future financial and operational results.

ACM Management Agreement

On April 30, 2020, ACM notified ARMOUR that ACM was voluntarily waiving a portion of the Base Management Fee due and payable to ACM pursuant to the Seventh Amended and Restated Management Agreement, effective as of November 17, 2017 (as further amended and restated on July 21, 2020, the “Agreement”), until further notice. This previously disclosed voluntary waiver was deemed prudent by ACM to maintain a competitive cost structure for ARMOUR considering the COVID-19 related decline in the stockholders’ equity of ARMOUR.

In early January 2021, ACM reviewed (and will continue to review quarterly) the level of such fee waiver considering current economic circumstances and noted that from May 1, 2020 to December 31, 2020, the stockholders’ equity of ARMOUR has increased (before issuance of additional shares), resulting in a partial recovery of the COVID-19 related decline. On January 13, 2021, ACM notified ARMOUR that it intended to adjust

the fee waiver to the rate of $2,400 for the first quarter of 2021 and $800 per month thereafter until ACM provides further notice to ARMOUR. ACM may terminate this waiver for any month by providing notice to ARMOUR on or before the 25th day of the preceding month. This waiver does not constitute a waiver of any other amounts due to ACM from ARMOUR under the Agreement or otherwise, including but not limited to any expense reimbursements, any amounts calculated by reference to the contractual Base Management Fee, or any awards under the Second Amended and Restated 2009 Stock Incentive Plan.

Series C Preferred Stock

On January 27, 2021, a cash dividend of $0.14583 per outstanding share of Series C Preferred Stock, or $780 in the aggregate, was paid to holders of record on January 15, 2021. We have also declared cash dividends of $0.14583 payable February 26, 2021 and March 29, 2021 to holders of record on February 15, 2021 and March 15, 2021, respectively.

Between January 19, 2021 and February 16, 2021, we issued 434 shares under our Preferred C ATM Sales Agreement for proceeds of $10,594, net of issuance costs and commissions of $108.

Common Stock

    On January 28, 2021, a cash dividend of $0.10 per outstanding common share, or $6,646 in the aggregate, was paid to holders of record on January 15, 2021. We have also declared cash dividends of $0.10 per outstanding common share payable February 26, 2021 to holders of record on February 16, 2021 and payable March 29, 2021 to holders of record on March 15, 2021.