EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE

EARNINGS PER SHARE

10. EARNINGS PER SHARE

The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Basic:
Net income (loss)	$	(105)	$	(4,748)	$	(31,307)	$	18,063
Less: Preferred stock dividend		(8,586)		(997)		(14,218)		(2,489)
Less: Undistributed earnings allocable to preferred stockholders		—		—		—		(1,301)
Net (loss) income available to common stockholders	$	(8,691)	$	(5,745)	$	(45,525)	$	14,273
Weighted average basic number of common shares outstanding basic		16,457		16,457		16,457		16,425
Basic net (loss) income per share of common stock	$	(0.53)	$	(0.35)	$	(2.77)	$	0.87
Diluted:
Net (loss) income available to common stockholders basic	$	(8,691)	$	(5,745)	$	(45,525)	$	14,273
Reallocation of undistributed earnings		—		—		—		7
Net (loss) income available to common stockholders diluted	$	(8,691)	$	(5,745)	$	(45,525)	$	14,280
Weighted average basic number of common shares outstanding basic		16,457		16,457		16,457		16,425
Common stock equivalent shares representing shares issuable upon:
Exercise of stock options		Anti-dilutive		Anti-dilutive		Anti-dilutive		Anti-dilutive
Vesting of restricted stock units		Anti-dilutive		Anti-dilutive		Anti-dilutive		95
Weighted average diluted number of common shares outstanding diluted		16,457		16,457		16,457		16,520
Diluted net (loss) income per share of common stock	$	(0.53)	$	(0.35)	$	(2.77)	$	0.86

The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share (“ASC 260”), which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the two-class method which allocates earnings for the reporting period between common shareholders and other security holders based on their respective participation rights in undistributed earnings. Diluted earnings per share was calculated using the two-class method, as this computation was more dilutive than the calculation using the if-converted method. For additional information on the Company’s preferred stock, which is considered a participating security, see Note 9, “Redeemable Convertible Preferred Stock”.

For the three and six months ended June 30, 2024, common stock equivalents, including options and restricted stock units (“RSUs”), totaling 0.3 million, were anti-dilutive and not included in the computation of diluted earnings per share of common stock. For the three and six months ended June 30, 2023, common stock equivalents, including options and RSUs, totaling 0.6 million and 0.5 million, respectively, were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive.