Net Earnings (Loss) per Share Applicable to Common Stockholders

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Earnings (Loss) per Share Applicable to Common Stockholders

Note 8. Net Earnings (Loss) per Share Applicable to Common Stockholders

Basic loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding during the period. Net income (loss) attributable to common stockholders includes the effect of the deemed capital contribution on extinguishment of preferred stock and the deemed dividend related to the immediate accretion of beneficial conversion feature of convertible preferred stock. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method) and the conversion of the Company's convertible preferred stock and warrants. Diluted loss per share excludes the shares issuable upon the conversion of preferred stock and the exercise of stock options and warrants from the calculation of net loss per share if their effect would be anti-dilutive.

The following table summarizes the earnings (loss) per share calculation (in thousands, except per share amount):

	For the Years Ended December 31,
	2019			2018
Basic earnings per share
Numerator:
Net (loss) income	$	(4,183	)	$	1,727
Net (loss) income available to common stockholders	$	(4,183	)	$	1,727
Denominator:
Weighted average number of common shares outstanding,		2,511,566			1,896,057
Earnings per basic share:
Net (loss) income		(1.67	)		0.91
Net (loss) income available to common stockholders	$	(1.67	)	$	0.91
Dilutive earnings per share
Numerator:
Net income (loss)	$	(4,183	)	$	1,727
Net (loss) income available to common stockholders	$	(4,183	)	$	1,727
Denominator:
Weighted average basic shares outstanding,		2,511,566			1,896,057
Weighted average effect of dilutive securities
Convertible preferred stock		-			688
Weighted average diluted shares outstanding		2,511,566			1,896,745
Earnings per diluted share:
Net (loss) income	$	(1.67	)	$	0.91
Net (loss) income available to common stockholders	$	(1.67	)	$	0.91

Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at December 31, 2019 and 2018 are as follows:

	As of December 31,
	2019		2018
Convertible preferred stock		688		-
Warrants to purchase common stock		285,273		294,072
Options to purchase common stock		88,950		124,381
Total		374,911		418,453