Note 5 - Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 5.    Income (Loss) Per Common Share

We calculate basic income (loss) per common share on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock and if-converted methods.

Potential dilutive shares of common stock include outstanding unvested restricted stock awards, stock units, warrants and convertible preferred stock for periods in which we have reported net income. For periods in which we report net losses, potential dilutive shares of common stock are excluded, as their conversion and exercise would be anti-dilutive.

The following table represents net income (loss) per common share – basic and diluted (in thousands, except income (loss) per share): 

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator
Net income (loss)	$	785		$	(14,028	)	$	19,756		$	(31,213	)
Preferred stock dividends		(138	)		(138	)		(276	)		(276	)
Net income (loss) applicable to common shares	$	647		$	(14,166	)	$	19,480		$	(31,489	)
Denominator
Basic weighted average common shares		535,531			525,243			534,819			524,218
Dilutive restricted stock units, warrants and deferred shares		6,731			—			6,649			—
Diluted weighted average common shares		542,262			525,243			541,468			524,218
Basic income (loss) per common share (in cents)		0.1			(2.7	)		3.6			(6.0	)
Diluted income (loss) per common share (in cents)		0.1			(2.7	)		3.6			(6.0	)

Diluted income (loss) per share for the three and six months ended June 30, 2021 and 2020 excludes the potential effects of outstanding shares of our convertible preferred stock, as their conversion would have no effect on the calculation of dilutive shares.

For the three months ended June 30, 2021, the calculation of diluted income per common share included (i) 2,960,950 restricted stock units, (ii) 1,635,675 warrants to purchase one share of common stock and (iii) 2,134,009 deferred shares of common stock that were dilutive.  For the six months ended June 30, 2021, the calculation of diluted income per common share included (i) 2,923,515 restricted stock units, (ii) 1,591,935 warrants to purchase one share of common stock and (iii) 2,134,009 deferred shares that were dilutive.  For the three and six months ended June 30, 2020, all outstanding restricted stock units, warrants and deferred shares were excluded from the computation of diluted loss per share, as our reported net losses for those periods would cause their conversion and exercise to have no effect on the calculation of loss per share.