Note 2 - Earnings Per Share

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 2 — EARNINGS PER SHARE

Earnings per Common Share

Earnings (loss) per common share is computed using the two-class method related to its Series A Redeemable Convertible Preferred Stock, par value of $0.0001, (“Preferred Stock”). Under the two-class method, undistributed earnings available to stockholders for the period are allocated on a pro rata basis to the common stockholders and to the holders of the Preferred Stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon

conversion of the Preferred Stock. 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 associated with restricted stock awards and shares issuable upon the exercise of stock options, using the treasury stock method, and the potential common shares that could be issued from conversion of the Preferred Stock, using the if-converted method. When a net loss occurs, potential common shares have an anti-dilutive effect on earnings per share and such shares are excluded from the diluted earnings per share calculation.

For the three and nine months ended September 30, 2021 and 2020, the Company incurred a net loss from operations, therefore basic and diluted net loss per share are the same for the periods. For the three and nine months ended September 30, 2021, approximately 0.8 million restricted shares, 1.5 million shares issuable upon exercise of options and 9.5 million common shares issuable upon the conversion of the Preferred Stock were excluded from dilutive potential common shares for the periods as they were anti-dilutive. For the three and nine months ended September 30, 2020, 0.3 million restricted shares, 0.2 million shares issuable upon exercise of options and 8.9 million common shares issuable upon conversion of the Preferred Stock were excluded from dilutive potential common shares for the periods as they are anti-dilutive.

For the three and nine months ended September 30, 2021 and 2020, the Company calculated earnings (loss) per share as follows:

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
	(unaudited)						(unaudited)
(In thousands, except share and per share data)
Net loss attributable to Lindblad Expeditions Holdings, Inc.	$	(24,338	)	$	(27,379	)	$	(92,877	)	$	(68,973	)
Series A redeemable convertible preferred stock dividend		1,340			425			3,962			425
Undistributed loss available to stockholders	$	(25,678	)	$	(27,804	)	$	(96,839	)	$	(69,398	)
Weighted average shares outstanding:
Total weighted average shares outstanding, basic		50,110,188			49,779,525			50,013,191			49,715,663
Total weighted average shares outstanding, diluted		50,110,188			49,779,525			50,013,191			49,715,663
Undistributed loss per share available to stockholders:
Basic	$	(0.50	)	$	(0.56	)	$	(1.87	)	$	(1.40	)
Diluted	$	(0.50	)	$	(0.56	)	$	(1.87	)	$	(1.40	)