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NET INCOME PER COMMON SHARE
 9 Months Ended
Sep. 30, 2022
NET INCOME PER COMMON SHARE [Abstract]  
NET INCOME PER COMMON SHARE
2.
NET INCOME PER COMMON SHARE

The Company presents basic and diluted income per common share using the two-class method which requires all outstanding Series A Preferred Stock and unvested restricted stock that contain rights to non-forfeitable dividends and therefore participate in undistributed income with common shareholders to be included in computing income per common share. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed income is then allocated to common stock and participating securities, based on their respective rights to receive dividends. Series A Preferred Stock and unvested restricted stock contain non-forfeitable rights to dividends on an if-converted basis and on the same basis as common shares, respectively, and are considered participating securities. The Series A Preferred Stock and unvested restricted stock are not included in the computation of basic income per common share in periods in which we have a net loss, as the Series A Preferred Stock and unvested restricted stock are not contractually obligated to share in our net losses. However, the cumulative dividends on Series A Preferred Stock for the period decreases the income or increases the net loss allocated to common shareholders unless the dividend is paid in the period. Basic income per common share has been computed by dividing net income allocated to common shareholders by the weighted-average number of common shares outstanding. The basic and diluted net income amounts are the same for the three and nine months ended September 30, 2022 and 2021 as a result of the anti-dilutive impact of the potentially dilutive securities.

The Company uses the more dilutive method of calculating the diluted income per share by applying the more dilutive of either (a) the treasury stock method, if-converted method, or (b) the two-class method in its diluted income per common share calculation. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of restricted stock. Potentially dilutive shares issuable upon conversion of the Series A Preferred Stock are calculated using the if-converted method.

The following is a reconciliation of the numerator and denominator of the diluted net income per share computations for the periods presented below:
    Three Months Ended     Nine Months Ended  

 
September 30,
    
September 30,
  
(in thousands, except share data)
  
2022
    
2021
    
2022
    
2021
  
Numerator:
                        
Net income
  
$
3,544
    
$
3,839
    
$
4,076
    
$
10,754
  
Less: preferred stock dividend
    
(304
)
    
(304
)
    
(912
)
    
(912
)
Less: allocation to preferred stockholders
    
(540
)
    
(582
)
    
(522
)
    
(1,629
)
Less: allocation to restricted stockholders
    
(155
)
    
(232
)
    
(153
)
    
(634
)
Net income allocated to common stockholders
  
$
2,545
    
$
2,721
    
$
2,489
    
$
7,579
  
                                 
Basic income per share:
                                
Denominator:
                                
Weighted average common shares outstanding
    
25,381,447
      
25,135,381
      
25,692,094
      
25,043,357
  
Basic income per share
  
$
0.10
  
$
0.11
    
$
0.10
  
$
0.30
  
                                 
Diluted income per share:
                                
Denominator:
                                
Weighted average number of:
                                
Common shares outstanding
    
25,381,447
      
25,135,381
      
25,692,094
      
25,043,357
  
Dilutive potential common shares outstanding:
                                
Series A Preferred Stock
    
-
      
-
      
-
      
-
  
Unvested restricted stock
    
-
      
-
      
-
      
-
  
Dilutive shares outstanding
    
25,381,447
      
25,135,381
      
25,692,094
      
25,043,357
  
Diluted income per share
  
$
0.10
  
$
0.11
    
$
0.10
  
$
0.30
  

The following table summarizes the potential weighted average shares of common stock that were excluded from the determination of our diluted shares outstanding as they were anti-dilutive:
     Three Months Ended      Nine Months Ended  

 
September 30,
    
September 30,
  
(in thousands, except share data)
  
2022
    
2021
    
2022
    
2021
  
Series A Preferred Stock
    
5,381,356
      
5,381,356
      
5,381,356
      
5,381,356
  
Unvested restricted stock
    
1,548,265
      
815,383
      
1,582,493
      
823,662
  
     
6,929,621
      
6,196,739
      
6,963,849
      
6,205,018