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 nine months ended September 30, 2017 and September 30, 2016:



	Three Months Ended September 30, 2017					Three Months Ended September 30, 2016
Net income (loss)			$	(4,256,337	)			$	1,850,690

Less dividends paid:
Common stock	$	3,320,889				$	2,628,161
Preferred stock	880,509					880,509
			4,201,398					3,508,670
Undistributed earnings (deficit)			$	(8,457,735	)			$	(1,657,980	)



	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)	(0.38		)	(0.38		)	(0.11		)	(0.11		)
Total	$	(0.23	)	$	(0.23	)	$	0.07		$	0.07



	Nine Months Ended September 30, 2017					Nine Months Ended September 30, 2016
Net income (loss)			$	(4,183,767	)			$	(22,896,725	)

Less dividends paid:
Common stock	$	8,582,666				$	7,885,803
Preferred stock	2,631,744					2,631,744
			11,214,410					10,517,547
Undistributed earnings (deficit)			$	(15,398,177	)			$	(33,414,272	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.45		$	0.45		$	0.54		$	0.54
Undistributed earnings (deficit)	(0.80		)	(0.80		)	(2.29		)	(2.29		)
Total	$	(0.35	)	$	(0.35	)	$	(1.75	)	$	(1.75	)

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.