EARNINGS PER SHARE

In accordance with ASC 260, outstanding instruments that contain rights to non-forfeitable dividends are considered participating securities. The Company is required to apply the two-class method or the treasury stock method of computing basic and diluted earnings per share when there are participating securities outstanding. The Company has determined that outstanding unvested restricted shares issued under the Manager Equity Plan are participating securities, and they are therefore included in the computation of basic and diluted earnings per share. The following tables provide additional disclosure regarding the computation for the years ended December 31, 2017, December 31, 2016 and December 31, 2015:



	Year Ended December 31, 2017					Year Ended December 31, 2016					Year Ended December 31, 2015
Net income (loss)			$	4,706,961				$	(7,989,955	)			$	450,479
Less dividends paid:
Common stock	$	11,904,005				$	29,898,918				$	19,874,663
Preferred stock	3,522,036					3,522,036					3,522,036
			15,426,041					33,420,954					23,396,699
Undistributed earnings			$	(10,719,080	)			$	(41,410,909	)			$	(22,946,220	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.60		$	0.60		$	2.04		$	2.04		$	1.35		$	1.35
Undistributed earnings (deficit)	(0.54		)	(0.54		)	(2.83		)	(2.83		)	(1.56		)	(1.56		)
Total	$	0.06		$	0.06		$	(0.79	)	$	(0.79	)	$	(0.21	)	$	(0.21	)

No adjustment was required for the calculation of diluted earnings per share for the warrants described in Note 16 because the warrants’ exercise price is greater than the average market price of the common shares for the period, and thereby anti-dilutive.