EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

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, 2020 and September 30, 2019:


	Three Months Ended September 30, 2020				Three Months Ended September 30, 2019
Net income			$	2,551,010			$	2,157,748

Less dividends:
Common stock	$	2,120,188			$	1,776,575
Preferred stock	3,792				3,792
			2,123,980				1,780,367
Undistributed earnings (deficit)			$	427,030			$	377,381


	Unvested Share-Based Payment Awards		Common Stock		Unvested Share-Based Payment Awards		Common Stock
Distributed earnings	$	0.09	$	0.09	$	0.08	$	0.08
Undistributed earnings (deficit)	0.01		0.01		0.01		0.01
Total	$	0.10	$	0.10	$	0.09	$	0.09


	For the three months ended September 30,
	2020	2019
Basic weighted average shares of common stock	24,938,883	23,683,164
Weighted average of non-vested restricted stock	4,500	4,500
Diluted weighted average shares of common stock outstanding	24,943,383	23,687,664


	Nine Months Ended September 30, 2020				Nine Months Ended September 30, 2019
Net income			$	5,981,384			$	5,026,685

Less dividends:
Common stock	$	5,861,358			$	5,211,286
Preferred stock	11,292				488,056
Deemed dividend on preferred stock related to redemption	—				3,093,028
			5,872,650				8,792,370
Undistributed earnings (deficit)			$	108,734			$	(3,765,685)


	Unvested Share-Based Payment Awards		Common Stock		Unvested Share-Based Payment Awards		Common Stock
Distributed earnings	$	0.24	$	0.24	$	0.22	$	0.22
Undistributed earnings (deficit)	$	—	$	—	$	—	$	(0.16)
Total	$	0.24	$	0.24	$	0.22	$	0.06


	For the nine months ended September 30,
	2020	2019
Basic weighted average shares of common stock	24,927,122	23,683,164
Weighted average of non-vested restricted stock	4,402	4,500
Diluted weighted average shares of common stock outstanding	24,931,524	23,687,664