On July 1, 2018, the company issued 20,000 preferred shares for $10 per share to an investment bank. Each preferred share is convertible for a fixed number of common shares and has a mandatory 5% annual dividend that must be paid on December 31 of each fiscal year. These preferred shares must be redeemed by the company for cash if the market price of common shares exceeds $10 per share. Currently, the common shares are in trading range around $6 per share.

I want to know whether any reporting on the financial statements is necessary for the convertible shares if they have not been converted? I also want to know whether the preferred shares possible redemption for the company?