Note 12 - Earnings per Share

3 Months Ended

Mar. 31, 2023

Note 12 – Earnings per Share

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined based on the weighted average number of shares outstanding during the period combined with the incremental average shares that would have been outstanding assuming the conversion of all potentially dilutive common shares into common shares as of the earliest date possible. Potentially dilutive securities include stock options, convertible preferred stock, restricted stock, warrants, RSUs and OP units, which, subject to certain terms and conditions, may be tendered for redemption by the holder thereof for cash based on the market price of the Company’s common stock or, at the Company’s option and sole discretion, for shares of the Company’s common stock on a one-for-one basis. Stock options, convertible preferred stock, restricted stock, warrants, RSUs and OP units have been omitted from the Company’s denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the denominator would have no dilutive impact due to the net loss position. The weighted average number of anti-dilutive convertible preferred stock, restricted stock, RSUs and OP units outstanding for the three months ended March 31, 2023 and 2022 was approximately 6.8 million and 4.1 million, respectively.

The following table sets forth the computation of earnings per common share for the three months ended March 31, 2023 and 2022:


(in thousands, except per share data)	Three Months Ended March 31,
Numerator:	2023			2022
Net loss	$	(1,660	)	$	(3,190	)
Less: Preferred equity return on Fortress preferred equity		(3,427	)		—
Less: Preferred equity accretion to redemption value		(415	)		—
Less: Preferred OP units return		(112	)		—
Plus: Net loss attributable to noncontrolling interest		1,014			247
Net loss attributable to common stockholders	$	(4,600	)	$	(2,943	)
Denominator
Basic weighted-average common shares		35,374			31,967
Dilutive potential common shares		—			—
Diluted weighted-average common shares		35,374			31,967

Net loss per common share- basic and diluted	$	(0.13	)	$	(0.09	)