Note 4 — Earnings per Common Share:

All the shares of our common stock prior to the Effective Date were cancelled pursuant to the Equity Plan. Post-emergence, the Company presents earnings per common share information for the Class A and Class B securities.

Basic earnings/(loss) per common share is computed by dividing earnings/(loss), after the deduction of dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units. Participating securities are defined by ASC 260, Earnings Per Share, as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents and are included in the computation of earnings per share pursuant to the two-class method.

Class A

There were 266,664 shares of unvested Class A restricted common stock shares considered to be participating securities as of March 31, 2015. Such participating securities were allocated a portion of income under the two class method for the three months ended March 31, 2015, Holders of the participating securities do not participate in losses.

As management deemed the exercise price for the Class A Warrants of $0.01 per share to be nominal, warrant proceeds are ignored and the shares issuable upon Class A Warrant exercise are included in the calculation of Class A basic weighted average common shares outstanding for the period.

The computation of diluted earnings/(losses) per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units. As of March 31, 2015, there were 196,349 shares of Class A restricted stock units and 453,586 Class A stock options outstanding and considered to be potentially dilutive securities.

Class B

There are no participating securities or potentially dilutive securities relating to the Class B Common Stock.

Pre-reorganized OSG common shares

All shares of our common stock outstanding prior to the Effective Date were cancelled pursuant to the Equity Plan. Although earnings per share information for the three months ended March 31, 2014 is presented, it is not comparable to the information presented for the three months ended March 31, 2015 due to the changes in our capital structure.

The components of the calculation of basic earnings/(loss) per share and diluted earnings/(loss) per share are as follows:

		Three Months Ended
		March 31,
		2015		2014

Net income		$	42,901	$	12,550

Weighted average common shares outstanding:

Class A common stock – basic	⁽¹⁾		520,583,598

Class A common stock – diluted	⁽¹⁾		520,587,201

Class B common stock - basic and diluted	⁽²⁾		7,924,944

Common stock - basic and diluted					30,516,394

⁽¹⁾

The weighted average common shares outstanding for Class A Common Stock was calculated using the Class A Common Stock outstanding and the Class A Warrants outstanding for the period January 1, 2015 through March 31, 2015. As of March 31, 2015 there were 310,726,271 shares of Class A Common Stock outstanding and 210,145,872 Class A Warrants outstanding.

⁽²⁾

The weighted average common shares outstanding for Class B Common Stock basic and diluted was calculated using Class B Common Stock outstanding and Class B Warrants outstanding for the period January 1, 2015 through March 31, 2015. As of March 31, 2015 there were 5,711,847 shares of Class B Common Stock outstanding and 2,212,204 Class B Warrants outstanding.

There were 3,603 dilutive equity awards outstanding as of March 31, 2015. Awards of options for 453,586 shares of Class A Common Stock and 854,644 shares of pre-reorganized common stock for the three months ended March 31, 2015 and 2014, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive.