Earnings Per Share

6 Months Ended

Jun. 30, 2020

12.	Earnings Per Share

As discussed in Note 1, the conversions of PPIX, PCA, and PIPE to stock insurance companies and the simultaneous acquisition of these companies resulted in the issuance of the Company’s common stock as of March 27, 2019. The basic weighted average number of common shares outstanding was 3,615,500 for the three and six months ended June 30, 2020 and 2019. For the period prior to the date of the conversions, the net common shares issued in the initial public offering were assumed to be outstanding since January 1, 2019.

The following table presents a reconciliation of the numerators and denominators that were used in the basic and diluted per share computations for the Company’s common stock:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Basic earnings per common share:
Numerator:
Net income (loss)	$	358,063	$	(560,947	)	$	(764,640	)	$	(469,158	)
Denominator:
Weighted average shares outstanding		3,615,500		3,615,500			3,615,500			3,615,500
Basic earnings per common share	$	0.10	$	(0.16	)	$	(0.21	)	$	(0.13	)

Diluted earnings per common share:
Numerator:
Net income (loss)	$	358,063	$	(560,947	)	$	(764,640	)	$	(469,158	)
Denominator:
Weighted average shares outstanding - basic		3,615,500		3,615,500			3,615,500			3,615,500
Add: vested stock options		23,243		—			23,243			—
Number of shares used in diluted computation		3,638,743		3,615,500			3,638,743			3,615,500
Diluted earnings per common share	$	0.10	$	(0.16	)	$	(0.21	)	$	(0.13	)