NOTE

– EARNINGS PER SHARE

Earnings per common share is computed by dividing net income available to common shareholders, by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares issuable upon the exercise of stock options (if such option is an equity instrument, using the treasury stock method), unvested performance-based share units, unvested restricted share units, unvested restricted shares and previously outstanding warrants. For the year ended

December 31, 2017,

there were

dilutive shares because the Company incurred a net loss.

As of

December 31, 2018

and

2017,

10,088,074

and

10,656,520

warrants, respectively, to purchase common stock at a price of

$11.50

per share were outstanding. The Company determined these previously outstanding warrants were anti-dilutive for the year ended

December 31, 2017

and were

not

considered in the calculation of diluted weighted average shares for that year.

For the years ended

December 31, 2019,

2018

and

2017,

the Company calculated earnings per share as follows:

	For the years ended December 31,
	2019		2018		2017
(In thousands, except share and per share data)
Net income (loss) attributable to Lindblad Expeditions Holdings, Inc.	$	16,353	$	11,352	$	(8,661	)
Non-cash deemed dividend to warrant holders		2,654		-		-
Net income (loss) available to common stockholders	$	13,699	$	11,352	$	(8,661	)

Weighted average shares outstanding:
Total weighted average shares outstanding, basic		47,440,788		45,378,188		44,576,912
Dilutive potential common shares		245,141		313,908		-
Dilutive potential options		66,831		45,834		-
Dilutive potential warrants		1,673,803		602,124		-
Total weighted average shares outstanding, diluted		49,426,563		46,340,054		44,576,912

Net income (loss) per share available to common stockholders
Basic	$	0.29	$	0.25	$	(0.19	)
Diluted	$	0.28	$	0.24	$	(0.19	)