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Note 10 - Equity
6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
10.
Equity
 
In
July 2015,
the Company's Board of Directors authorized the Company, from time to time and depending on market conditions, to repurchase up to 
$25.0
million of the Company's outstanding common stock. The Company has
not
repurchased any shares under the existing authorization during
2019
or the
six
months ended
June 30, 2020
.
 
In
February 2018,
the Company's Board of Directors adopted a tax benefits preservation plan (the "Plan") designed to protect and preserve the Company's ability to utilize its net operating loss carryforwards ("NOLs"). The Company submitted the Plan for shareholder ratification at its
2019
Annual Meeting of Shareholders and the Plan was ratified by shareholders. The purpose of the Plan is to preserve the Company's ability to use its NOLs, which would be substantially limited if the Company experienced an "ownership change" as defined under Section
382
of the Internal Revenue Code. In general, an ownership change would be deemed to have occurred if the Company's shareholders who are treated as owning
five
percent or more of the outstanding shares of Safeguard for purposes of Section
382
("five-percent shareholders") collectively increase their aggregate ownership in the Company's overall shares outstanding by more than
50
percentage points. Whether this change has occurred would be measured by comparing each
five
-percent shareholder's current ownership as of the measurement date to such shareholders' lowest ownership percentage during the
three
-year period preceding the measurement date. To protect the Company's NOLs from being limited or permanently lost under Section
382,
the Plan is intended to deter any person or group from acquiring beneficial ownership of
4.99%
or more of the Company's outstanding common stock without the approval of the Board, reducing the likelihood of an unintended ownership change. If such beneficial ownership is acquired without the approval of the Board, under the Plan, the Company will issue
one
preferred stock purchase right (the "Rights") for each share of Safeguard's common stock held by shareholders as of the applicable date of record. The issuance of the Rights will
not
be taxable to Safeguard or its shareholders and will
not
affect Safeguard's reported earnings per share. The Rights will trade with Safeguard's common shares and will expire
no
later than
February 19, 2021.
The Rights and the Plan
may
also expire on an earlier date upon the occurrence of other events, including a determination by the Company's Board that the Plan is
no
longer necessary or desirable for the preservation of the Company's tax attributes or that
no
tax attributes
may
be carried forward (with such expiration occurring as of the beginning of the applicable taxable year). There can be
no
assurance that the Plan will prevent the Company from experiencing an ownership change.