Note 10 - Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

10. Stockholders’ Equity

Basic earnings per share of Common Stock 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 Ended
	March 31,		March 31,
	2022		2021
Weighted average shares outstanding for basic calculation		2,838		2,832
Add: Effect of dilutive stock awards		-		-
Weighted average shares outstanding, adjusted for diluted calculation		2,838		2,832

For the three month periods ended March 31, 2022 and 2021, the dilutive effect of stock options and restricted awards was not recognized since we had a net loss. For both the three month periods ended March 31, 2022 and 2021, approximately 35,000 stock awards were excluded from the diluted per share calculation as they would be anti-dilutive.

The Company will repurchase shares of Common Stock 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 month periods.
 
              On the close of business on July 15, 2021, the Company effectuated Reverse Split. In connection with the Reverse Split, the amendment to the Company’s Restated Certificate of Incorporation approved by the Company’s stockholders was effective as of July 15, 2021.

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 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 months ended March 31, 2022 is as follows (in thousands):

			Capital in
	Common		Excess of		Retained
	Stock		Par Value		Deficit
Balance at January 1, 2022	$	54	$	30,450	$	(942	)
Net loss		-		-		(577	)
Stock-based compensation expense		-		21		-
Balance at March 31, 2022	$	54	$	30,471	$	(1,519	)

A reconciliation of the activity in Stockholders’ Equity accounts for the three months ended March 31, 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	)