EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

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, 2021 and March 31, 2020:


	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
Net income			$	2,808,643			$	1,551,671

Less dividends:
Common stock	$	2,244,904			$	1,870,416
Preferred stock	3,708				3,750
			2,248,612				1,874,166
Undistributed earnings (deficit)			$	560,031			$	(322,495)


	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)	0.02		0.02		—		(0.02)
Total	$	0.11	$	0.11	$	0.08	$	0.06


	For the three months ended March 31,
	2021	2020
Basic weighted average shares of common stock	24,938,883	24,906,983
Weighted average of non-vested restricted stock	4,500	4,500
Diluted weighted average shares of common stock outstanding	24,943,383	24,911,483