Earnings Per Common Share

12 Months Ended

Dec. 31, 2021

(5) Earnings Per Common Share

The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “Earnings Per Share,” using the two-class method because the Company’s unvested restricted stock is a participating security since these awards contain non-forfeitable rights to receive dividends. Under the two-class method, earnings are allocated to each class of common stock and participating security as if all of the earnings for the period had been distributed.

Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options, RSUs and PRSUs. The dilutive effect of stock options, RSUs and PRSUs is determined using the treasury stock method.

The following table reconciles earnings (loss) per common share:

	Year Ended			Year Ended
	December 31,			December 31,
	2021			2020
Basic Earnings (Loss) per Common Share:
Net loss — basic	$	(34,759	)	$	(32,537	)
Beneficial conversion feature		—			(11,443	)
Net loss attributable to common shares — basic	$	(34,759	)	$	(43,980	)
Weighted average common shares outstanding — basic		16,463			12,906
Basic earnings (loss) per common share	$	(2.11	)	$	(3.41	)

Diluted Earnings (Loss) per Common Share:
Net loss attributable to common shares — diluted	$	(34,759	)	$	(43,980	)
Weighted average common shares outstanding — diluted		16,463			12,906
Diluted earnings (loss) per common share	$	(2.11	)	$	(3.41	)

See Note 12 for details on the beneficial conversion feature.

The following table indicates the common stock equivalents related to stock options, RSUs and PRSUs that were anti-dilutive and excluded from diluted earnings per common share calculations:

	Year Ended		Year Ended
	December 31,		December 31,
	2021		2020
Anti-dilutive shares due to:
Exercise prices higher than the average market price		50		200
Net loss		32		—