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 months ended March 31, 2018 and March 31, 2017:



	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
Net income (loss)			$	11,315,000			$	2,369,141

Less dividends paid:
Common stock	$	2,314,686			$	2,630,889
Preferred stock	880,509				880,509
			3,195,195				3,511,398
Undistributed earnings (deficit)			$	8,119,805			$	(1,142,257	)



	Unvested Share-Based Payment Awards		Common Stock		Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.10	$	0.10	$	0.15		$	0.15
Undistributed earnings (deficit)	0.35		0.35		(0.07		)	(0.07		)
Total	$	0.45	$	0.45	$	0.08		$	0.08

No adjustment was required for the calculation of diluted earnings per share for the warrants described in Note 15 because the warrants’ exercise price was greater than the average market price of the common shares for the period, and thereby anti-dilutive. For three months ended March 31, 2018 the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 23,392,387 and for three months ended March 31, 2017 the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 17,539,258.