Note 15 - Earnings per Share

12 Months Ended

Dec. 31, 2024

Note 15 – 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 year ended December 31, 2024 and 2023 was approximately 8.0 million and 7.0 million, respectively.

The following table sets forth the computation of earnings per common share for the years ended December 31, 2024 and 2023:


	For the Year Ended December 31,
(in thousands, except per share data)	2024			2023
Numerator:
Net loss	$	(14,798	)	$	(7,017	)
Less: Preferred equity return on Fortress preferred equity		(12,643	)		(14,641	)
Less: Preferred equity accretion to redemption value		(5,061	)		(3,247	)
Less: Preferred OP units return		(595	)		(483	)
Plus: Net loss attributable to noncontrolling interest		4,246			3,924
Net loss attributable to common stockholders	$	(28,851	)	$	(21,464	)
Denominator
Basic weighted-average common shares		35,997			35,608
Dilutive potential common shares		—			—
Diluted weighted-average common shares		35,997			35,608

Net loss per common share- basic and diluted	$	(0.80	)	$	(0.60	)