Note 12 - Earnings Per Share (EPS)

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 12. EARNINGS PER SHARE (EPS)

Basic EPS is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. Our outstanding convertible preferred stock are considered participating securities as the holders may participate in undistributed earnings with holders of common shares and are not obligated to share in our net losses.

Diluted EPS is computed by dividing the net income attributable to our common shareholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the impact of assumed exercises and conversions is dilutive. The dilutive effects of outstanding options, warrants, nonvested shares of common stock and nonvested restricted stock units that vest solely on the basis of a service condition are calculated using the treasury stock method. The dilutive effects of the outstanding preferred stock are calculated using the if-converted method.

Reconciliations of the numerators and denominators in the EPS computations follow.

	Three Months Ended March 31,
	2022			2021
NUMERATOR (in thousands):
Net income (loss)	$	(1,516	)	$	591
Allocation of earnings to participating convertible preferred stock		-			(3	)
Numerator for basic EPS - income (loss) available to common shareholders		(1,516	)		588
Effect of dilutive securities:
Add back - allocation of earnings to participating convertible preferred stock		-			3
Reallocation of earnings to participating convertible preferred stock considering potentially dilutive securities		-			(3	)
Numerator for diluted EPS - adjusted income (loss) available to common shareholders	$	(1,516	)	$	588
DENOMINATOR:
Weighted average number of shares of shares of common stock outstanding		51,664,912			45,248,782
Weighted average number of shares of common stock underlying vested restricted stock units		865,052			386,403
Denominator for basic EPS - weighted average number of shares outstanding		52,529,964			45,635,185
Effect of dilutive securities:
Nonvested restricted stock units		-			845,893
Stock options		-			9,626
Warrants		-			65,543
Denominator for diluted EPS - adjusted weighted average number of shares outstanding		52,529,964			46,556,247

No effects of potentially dilutive securities outstanding were included in the calculation of diluted EPS for the three months ended March 31, 2022, because to do so would be antidilutive as a result of our net loss. Potentially dilutive securities outstanding during the three months ended March 31, 2022, included our outstanding convertible preferred stock, options, warrants and nonvested RSUs. The effects of the following potentially dilutive securities, outstanding at March 31, 2021, were not included in the computation of diluted EPS for the three months ended March 31, 2021, because to do so would have been antidilutive: stock options for the purchase of 578,121 shares of our common stock and warrants for the purchase of 50,000 shares of our common stock.