Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share (EPS)

v3.21.1
Earnings Per Share (EPS)
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share ("EPS")

Note 5 - Earnings Per Share (“EPS”)


Basic EPS is computed by dividing net income (loss) by the basic weighted-average number of shares outstanding during the period.


Diluted EPS is computed by dividing net income by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, were exercised, settled or converted into common stock and were dilutive. The diluted weighted-average number of shares used in our diluted EPS calculation is determined using the treasury stock method for stock options and warrants, and the if-converted method for convertible notes. Under the if-converted method, the convertible notes are assumed to have been converted at the beginning of the period or at time of issuance, if later, and the resulting common shares are included in the denominator. For periods in which we recognize losses, the calculation of diluted loss per share is the same as the calculation of basic loss per share.


Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards, are considered to be participating securities, and therefore, the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and is excluded from the calculation of EPS allocated to common stock. Our restricted stock awards are subject to forfeiture and restrictions on transfer until vested and have identical voting, income and distribution rights to the unrestricted common shares outstanding.


Our weighted average unvested restricted stock awards outstanding were 91,500 and 178,151 for the three months ended March 31, 2021 and 2020, respectively.


The calculations of basic and diluted EPS are as follows:


    Three Months Ended March 31, 2021     Three Months Ended March 31, 2020  
          Weighted                 Weighted        
          Average     Earnings           Average     Earnings  
    Net     Shares     Per     Net     Shares     Per  
    Income     Outstanding     Share     Income     Outstanding     Share  
    (in thousands, except per share data)     (in thousands, except per share data)  
Basic:                                    
As reported   $ 253       23,279             $ 3,033       23,163          
Amounts allocated to unvested restricted shares     (1 )     (92 )             (23 )     (178 )        
Amounts available to common stockholders   $ 252       23,187     $ 0.01     $ 3,010       22,985     $ 0.13  
Diluted:                                                
Amounts allocated to unvested restricted shares     1       92               23       178          
Shares of common stock to be issued for convertible note           1,750                              
Amounts reallocated to unvested restricted shares     (1 )                   (23 )              
Amounts available to stockholders and assumed conversions   $ 252       25,029     $ 0.01     $ 3,010       23,163     $ 0.13