ccordance 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, 2019 and June 30, 2018:



	Three Months Ended June 30, 2019					Three Months Ended June 30, 2018
Net income (loss)			$	1,394,170				$	(21,490,063	)

Less dividends:
Common stock	$	1,776,575				$	1,420,990
Preferred stock	3,792					870,726
Deemed dividend on preferred stock related to redemption	—					—
			1,780,367					2,291,716
Undistributed earnings (deficit)			$	(386,197	)			$	(23,781,779	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.07		$	0.07		$	0.06		$	0.06
Undistributed earnings (deficit)	(0.01		)	(0.01		)	(1.00		)	(1.00		)
Total	$	0.06		$	0.06		$	(0.94	)	$	(0.94	)



	Six Months Ended June 30, 2019					Six Months Ended June 30, 2018
Net income (loss)			$	2,868,937				$	(10,175,063	)

Less dividends:
Common stock	$	3,434,711				$	3,735,676
Preferred stock	484,264					1,751,235
Deemed dividend on preferred stock related to redemption	3,093,028					—
			7,012,003					5,486,911
Undistributed earnings (deficit)			$	(4,143,066	)			$	(15,661,974	)



	Unvested Share-Based Payment Awards			Common Stock			Unvested Share-Based Payment Awards			Common Stock
Distributed earnings	$	0.14		$	0.14		$	0.16		$	0.16
Undistributed earnings (deficit)	(0.17		)	(0.17		)	(0.67		)	(0.67		)
Total	$	(0.03	)	$	(0.03	)	$	(0.51	)	$	(0.51	)

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 ended June 30, 2019. No adjustment was required for the calculation of diluted earnings per share for the three months June 30, 2018, for the warrants described in Note 16 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, 2019 the weighted average number of shares of common stock outstanding to calculate the basic and diluted earnings per share was 23,687,664 and 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.