General form of registration statement for all companies including face-amount certificate companies

Earnings Per Share (EPS)

v3.21.2
Earnings Per Share (EPS)
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
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 2,328,043 and 114,282 for the three months ended September 30, 2021, and 2020, respectively, and 1,438,505 and 146,109 for the nine months ended September 30, 2021, and 2020, respectively.

 

Weighted average unvested restricted stock awards outstanding for the three months ended September 30, 2021 were not included in the computation of our diluted EPS, as inclusion would have been anti-dilutive, however for the three months ended September 30, 2020 and nine months ended September 30, 2021 and 2020, they were included as they would have been dilutive.

 

The calculations of basic and diluted EPS are as follows:

 

    Three Months Ended September 30, 2021     Three Months Ended September 30, 2020  
          Weighted                 Weighted        
          Average     Loss           Average     Earnings  
    Net     Shares     Per     Net     Shares     Per  
    Loss     Outstanding     Share     Income     Outstanding     Share  
    (in thousands, except per share data)     (in thousands, except per share data)  
Basic:                                    
As reported   $ (195 )     33,064           $ 4,689       23,252        
Amounts allocated to unvested restricted shares    
     
              (23 )     (114 )        
Amounts available to common stockholders   $ (195 )     33,064     $ (0.01 )   $ 4,666       23,138     $ 0.20  
Diluted:                                                
Amounts allocated to unvested restricted shares    
     
              23       114          
Amounts reallocated to unvested restricted shares    
     
              (23 )    
         
Amounts available to stockholders and assumed conversions   $ (195 )     33,064     $ (0.01 )   $ 4,666       23,252     $ 0.20  

 

    Nine Months Ended September 30, 2021     Nine Months Ended September 30, 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   $ 420       27,812             $ 11,525       23,192          
Amounts allocated to unvested restricted shares and warrants     (22 )     (1,439 )             (73 )     (146 )        
Amounts available to common stockholders   $ 398       26,373     $ 0.02     $ 11,452       23,046     $ 0.50  
Diluted:                                                
Amounts allocated to unvested restricted shares     23       1,439               73       146          
Stock warrants    
      3,964              
     
         
Incremental shares to be issued for convertible note     31       10,000              
     
         
Amounts reallocated to unvested restricted shares     (23 )    
              (73 )    
         
Amounts available to stockholders and assumed conversions   $ 429       41,776     $ 0.01     $ 11,452       23,192     $ 0.49  

Note 12—Earnings Per Share (“EPS”)

 

Basic EPS is computed by dividing net income 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.

 

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 153,612 and 424,531 for the years ended December 31, 2020 and 2019, respectively.

The calculations of basic and diluted EPS are as follows:

 

    Years Ended December 31, 2020     Years Ended December 31, 2019  
    Net
Income
    Weighted
Average
Shares
Outstanding
    Earnings
Per
Share
    Net
Income
    Weighted
Average
Shares
Outstanding
    Earnings
Per
Share
 
    (in thousands, except per share data)     (in thousands, except per share data)  
Basic:            
As reported   $ 16,009       23,230             $ 9,950       23,141          
Amounts allocated to unvested restricted shares     (106 )     (154 )             (183 )     (425 )        
Amounts available to common stockholders   $ 15,903       23,076     $ 0.69     $ 9,767       22,716     $ 0.43  
Diluted:                                                
Amounts allocated to unvested restricted shares     106       154               183       425          
Non participating share units            
                     
         
Amounts reallocated to unvested restricted shares     (107 )                   (186 )              
Amounts available to stockholders and assumed conversions   $ 15,902       23,230     $ 0.68     $ 9,764       23,141     $ 0.42