Note 11 - Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

11.         Stockholders’ Equity

Basic earnings per common share are based upon the weighted average shares outstanding. Outstanding stock options and restricted stock are treated as potential common stock for purposes of computing diluted earnings per share. Basic and diluted earnings per share are calculated using the following share data (in thousands):

	Three Months				Nine Months
	Ended				Ended
	September 30,		September 30,		September 30,		September 30,
	2021		2020		2021		2020
Weighted average shares outstanding for basic calculation		2,838		2,836		2,838		1,860
Add: Effect of dilutive stock awards		35		-		35		35
Weighted average shares outstanding, adjusted for diluted calculation		2,873		2,836		2,873		1,895

For the three and nine month periods ended September 30, 2021, approximately 35,000 stock awards were included in the diluted per share calculation as they are dilutive.  For the three month period ended September 30, 2020, the dilutive effect of stock options and restricted awards was not recognized since we had a net loss.  For the nine month period ended September 30, 2020, approximately 35,000 stock awards were included in the diluted per share calculation as they are dilutive.    

The Company will repurchase common shares from time to time that are tendered by recipients of restricted stock awards to satisfy tax withholding obligations on vested restricted stock. There were no such repurchased shares during the current or prior year three and nine month periods.

On June 19, 2020, the Company issued 19,500,000 shares of its common stock at a purchase price of $0.65 per share to stockholders of record as of May 18, 2020 in connection with its rights offering.

On the close of business on July 15, 2021, the Company effectuated a 1-for-12 reverse stock split of its outstanding shares of Common Stock, par value $0.02 per share (the “Common Stock”) such that every holder of Common Stock receives one share of Common Stock for every twelve shares of Common Stock held (the “Reverse Stock Split”). The amendment to the Company’s Restated Certificate of Incorporation approved by the Company’s stockholders was effective as of such record date.

No fractional shares of common stock were issued as a result of the Reverse Stock Split. Instead, in lieu of any fractional shares to which a stockholder of record would otherwise be entitled as a result of the Reverse Stock Split, the Company paid cash (without interest) equal to such fractional share multiplied by $0.70 which was the 90-day Volume Weighted Average Price (“VWAP”) of our common stock on the OTCQB for the period immediately preceding the Effective Time (with such average closing sales prices being adjusted to give effect to the Reverse Stock Split). After the Reverse Stock Split, a stockholder otherwise entitled to a fractional interest will not have any voting, dividend or other rights with respect to such fractional interest except to receive payment as described above.  Stockholders owning fractional shares were paid out in cash for such fractional shares.

A reconciliation of the activity in Stockholders’ Equity accounts for the three and nine months ended September 30, 2021 is as follows (in thousands):

				Capital in
	Common			Excess of			Retained
	Stock			Par Value			Deficit
Balance at January 1, 2021	$	684		$	29,738		$	(3,702	)
Net loss		-			-			(188	)
Stock-based compensation expense		-			21			-
Balance at March 31, 2021	$	684		$	29,759		$	(3,890	)
Net loss		-			-			(109	)
Stock-based compensation expense		-			21			-
Balance at June 30, 2021	$	684		$	29,780		$	(3,999	)
Net income		-			-			3,281
Effect of reverse stock split		(630	)		630			-
Redemption of fractional shares		-			(2	)		-
Stock-based compensation expense		-			22			-
Balance at September 30, 2021	$	54		$	30,430		$	(718	)

A reconciliation of the activity in Stockholders’ Equity accounts for the three and nine months ended September 30, 2020 is as follows (in thousands):

			Capital in
	Common		Excess of		Retained
	Stock		Par Value		Deficit
Balance at January 1, 2020	$	294	$	17,370	$	(3,765	)
Net income		-		-		1,054
Stock-based compensation expense		-		21		-
Balance at March 31, 2020	$	294	$	17,391	$	(2,711	)
Issuance of common stock		390		12,285		-
Net loss		-		-		(175	)
Stock-based compensation expense		-		20		-
Balance at June 30, 2020	$	684	$	29,696	$	(2,886	)
Net loss		-		-		(446	)
Stock-based compensation expense		-		21		-
Balance at September 30, 2020	$	684	$	29,717	$	(3,332	)