Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 194

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 194
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537 

    (Loss) income before provision for income taxes 
     (1,893) 
     (3,671) 
     1,709  
     (3,855)
  
    (Benefit from) provision for income taxes 
     (119) 
     (334) 
     —  
     (453)
  
    Net (loss) income 
    $(1,774) 
    $(3,337) 
    $1,709  
    $(3,402)

Note
19 – Private Placement of Common and Preferred Stock

In December 2022 and January 2023,
the Company completed one private placement of common stock and one private placement of preferred stock, respectively. The Company issued
1,359,497 shares of common stock and 820,115 shares of convertible, non-voting Series A perpetual preferred stock at $14.00 per share
each, generating net cash proceeds of approximately $28.6 million. The Company will use the net proceeds from these private placements
to fund organic growth, transact on potential acquisition opportunities, enter complementary new business lines, and/or to enhance capital
ratios.

In conjunction with the private placements,
the Company issued warrants to purchase up to 211,667 shares of Common Stock at a price of $14.00. The approximate fair value of the
warrants was deemed immaterial by management. The Warrants are exercisable at any time after their grant date, and from time to time,
in whole or in part, for 7 years from their grant dates, on December 30, 2029, and January 27, 2030. The exercise of such Warrants remains
subject to certain contractual provisions and a “cashless exercise” may be executed.

    121

Non-voting
common stock – In accordance with the capital raise, and in conjunction with shareholder
approval at the Annual Meeting that occurred on June 29, 2023, a class of non-voting common stock was created on July 19, 2023. On said
date, the State of Maryland approved the Articles Supplementary to the Articles of Incorporation for Bancorp 34, Inc. in which a class
of authorized stock containing 1,100,000 shares of non-voting common stock was established. In accordance with the stipulations established
during the capital raise, the preferred stock issued during the raise was converted to the newly established class of non-v