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 three and six months ended June 30, 2017 and June 30, 2016:



	Three Months Ended June 30, 2017					Three Months Ended June 30, 2016
Net income (loss)			$	(2,296,571	)			$	(7,799,801	)

Less dividends paid:
Common stock	$	2,630,889				$	2,627,621
Preferred stock	870,726					870,726
			3,501,615					3,498,347
Undistributed earnings (deficit)			$	(5,798,186	)			$	(11,298,148	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.15		$	0.15		$	0.18		$	0.18
Undistributed earnings (deficit)	(0.32		)	(0.32		)	(0.77		)	(0.77		)
Total	$	(0.17	)	$	(0.17	)	$	(0.59	)	$	(0.59	)



	Six Months Ended June 30, 2017					Six Months Ended June 30, 2016
Net income (loss)			$	72,570				$	(24,747,415	)

Less dividends paid:
Common stock	$	5,261,777				$	5,257,642
Preferred stock	1,751,235					1,751,235
			7,013,012					7,008,877
Undistributed earnings (deficit)			$	(6,940,442	)			$	(31,756,292	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.30		$	0.30		$	0.36		$	0.36
Undistributed earnings (deficit)	(0.39		)	(0.39		)	(2.17		)	(2.17		)
Total	$	(0.09	)	$	(0.09	)	$	(1.81	)	$	(1.81	)

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.