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, 2018 and June 30, 2017:



	Three Months Ended June 30, 2018					Three Months Ended June 30, 2017
Net income (loss)			$	(21,490,063	)			$	(2,296,571	)

Less dividends paid:
Common stock	$	1,420,990				$	2,630,889
Preferred stock	870,726					870,726
			2,291,716					3,501,615
Undistributed earnings (deficit)			$	(23,781,779	)			$	(5,798,186	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.06		$	0.06		$	0.15		$	0.15
Undistributed earnings (deficit)	(1.00		)	(1.00		)	(0.32		)	(0.32		)
Total	$	(0.94	)	$	(0.94	)	$	(0.17	)	$	(0.17	)



	Six Months Ended June 30, 2018					Six Months Ended June 30, 2017
Net income (loss)			$	(10,175,063	)			$	72,570

Less dividends paid:
Common stock	$	3,735,676				$	5,261,777
Preferred stock	1,751,235					1,751,235
			5,486,911					7,013,012
Undistributed earnings (deficit)			$	(15,661,974	)			$	(6,940,442	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.16		$	0.16		$	0.30		$	0.30
Undistributed earnings (deficit)	(0.67		)	(0.67		)	(0.39		)	(0.39		)
Total	$	(0.51	)	$	(0.51	)	$	(0.09	)	$	(0.09	)

Pursuant to an agreement dated January 18, 2018, XL investments agreed to terminate all of its previously held warrants to purchase 3,753,492 shares of common stock held by it, and therefore no adjustment was needed for the calculation of diluted earnings per share for the three months and six months ended June 30, 2018. No adjustment was required for the calculation of diluted earnings per share for the three months and six months ended June 30, 2017, for the warrants described in Note 17 because the warrants’ exercise price was greater than the average market price of the common shares for the period, and thereby anti-dilutive. For the three months ended June 30, 2018 the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 23,683,164 and for the three months ended June 30, 2017, the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 18,297,500. For the six months ended June 30, 2018, the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 23,538,579 and for the six months ended June 30, 2017, the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 17,920,473.