Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 90

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 90
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 activities of $17.7 million for the three months ended March 31, 2024. This decrease primarily relates to the change in unrealized gains on investments held at fair value.

Cash flows from investing activities. During the three months ended March 31, 2025, net cash provided by investing activities was $71.3 million compared to net cash provided by investing activities of $545.4 million for the three months ended March 31, 2024. This decrease was primarily due to a decrease in proceeds from payments received on mortgage loans held for investment.

Cash flows from financing activities. During the three months ended March 31, 2025, net cash used in financing activities was $70.9 million compared to net cash used in financing activities of $560.5 million for the three months ended March 31, 2024. The increase primarily relates to a decrease of principal repayments on borrowings under secured financing agreements.

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Emerging Growth Company and Smaller Reporting Company Status

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Exchange Act, for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. We may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

We are also a “smaller reporting company” as defined under the Exchange Act, and may elect to take advantage of certain of the scaled disclosures available to smaller reporting companies. We may be a smaller reporting company even after we are no longer an “emerging growth company.”

Dividends

We intend to make regular quarterly dividend payments to holders of our common stock. We also intend to make the accrued dividend payments on the Series A Preferred Stock, which are payable quarterly in arrears as provided in the articles supplementary setting forth the terms of the Series A Preferred Stock, and the Series B Preferred Stock, which are payable monthly as provided in the articles supplementary setting forth the terms of the Series B Preferred Stock. U.S. federal income tax law generally requires that a RE