Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share

Earnings Per Share

Note 10 - Earnings Per Share

Basic earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the treasury stock method and computed by dividing net loss available to common stockholders by the diluted weighted-average shares of common stock outstanding during each period. The Company’s potentially dilutive shares include stock options, warrants for the shares of common stock and restricted stock awards. The potentially dilutive shares are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when the effect is dilutive. The investor warrants are treated as equity in the calculation of diluted earnings per share in both the computation of the numerator and denominator, if

dilutive. The following table sets forth the calculations of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net loss	$	(6,411,000)	$	(3,628,000)	$	(14,117,000)	$	(10,851,000)
Less: decrease in fair value of investor warrants		(1,167,000)		(222,000)		(5,384,000)		(489,000)
Net loss available to common stockholders	$	(7,578,000)	$	(3,850,000)	$	(19,501,000)	$	(11,340,000)
Basic weighted-average common shares outstanding		15,072,392		13,361,292		15,072,307		13,156,469
Add: dilutive effect of equity instruments		—		76,251		—		81,935
Diluted weighted-average shares outstanding		15,072,392		13,437,543		15,072,307		13,238,404
Earnings per share – basic	$	(0.43)	$	(0.27)	$	(0.94)	$	(0.82)
Earnings per share – diluted	$	(0.50)	$	(0.29)	$	(1.29)	$	(0.86)

The potentially dilutive shares of common stock that have been excluded from the calculation of net loss per share because of their anti-dilutive effect are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Warrants to purchase shares of common stock	1,065,137	165,324	1,065,137	159,639
Outstanding stock options	364,125	378,466	364,125	378,466
Restricted stock awards	13,400	—	13,400	—
Total potentially dilutive shares of common stock	1,442,662	543,790	1,442,662	538,105