Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to the Company available to common stockholders by the weighted average number of common shares outstanding for the three and six months ended June 30, 2022 and 2021. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were either exercised or converted into common stock or resulted in the issuance of common stock that would share in the earnings of the Company. The dilutive effect of options is reflected in diluted earnings per share by application of the treasury stock method. The dilutive effect of shares to be purchased under the Company’s Employee Stock Purchase Plan is reflected in diluted earnings per share by the weighted-average number of shares outstanding that would have been outstanding during the period. The Company uses the two-class method to determine earnings per share.

For calculating basic earnings per share, for the three and six months ended June 30, 2022, the weighted average number of shares outstanding exclude 2,073,783 and 2,077,218 non-vested restricted shares and 13,448 and 14,013 unexercised substantive options. The computation of diluted earnings per share for the three and six months ended June 30, 2022 did not assume the effect of restricted shares or substantive options because the effects were antidilutive.

For calculating basic earnings per share, for the three and six months ended June 30, 2021, the weighted average number of shares outstanding exclude 1,719,138 and 1,209,177 non-vested restricted shares and 32,067 and 43,743 unexercised substantive options. The computation of diluted earnings per share for the three and six months ended June 30, 2021 did not assume the effect of restricted shares or substantive options because the effects were antidilutive.

The following table represents a reconciliation of the net income and weighted average shares outstanding for the calculation of basic and diluted earnings per share for the three and six months ended June 30, 2022 and 2021 (in thousands, except share data):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022		2021
Numerator
Net income	$	(320	)	$	(439	)	$	1,137	$	542
Earnings allocated to non-vested shares		0			0			191		93
Subtotal	$	(320	)	$	(439	)	$	946	$	449
Denominator
Weighted average common shares outstanding		10,761,172			6,973,055			10,346,089		6,029,054
Effect of dilutive nominal options		-			-			-		-
Effect of dilutive contingently earned shares		-			-			81,513		-
Dilutive average shares outstanding		10,761,172			6,973,055			10,427,602		6,029,054
Basic earnings per share	$	(0.03	)	$	(0.06	)	$	0.09	$	0.07
Dilutive earnings per share	$	(0.03	)	$	(0.06	)	$	0.09	$	0.07