EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. Diluted earnings per share reflects the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. Due to their anti-dilutive effect, the calculation of diluted earnings per share for the three months ended March 31, 2022 and 2021 excludes: 1) options to purchase 1,153,215 and 4,065,059 shares, respectively, of common stock, 2) warrants to purchase 0 and 1,983,510 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 0 and 2,035,666 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 0 and 5,497,450 shares, respectively, of common stock, and 5) Series A Preferred Stock which is convertible into 380,560 and 419,859 shares of common stock, and 6) 36,214,960 shares of common stock which may be issued upon conversion of the Senior Convertible Notes, based on the initial maximum conversion rate of 233.6449 shares of the Company’s common stock per $1,000 principal amount of the Senior Convertible Notes.

In accordance with Accounting Standards Codification (ASC) 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our Series A Preferred Stock, Series C Preferred Stock, and Series B and B1 Preferred Stock are considered participating securities. Basic earnings per common share are calculated by dividing the net income, adjusted for preferred dividends and income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the dilutions that would occur if any potential dilutive instruments were exercised or converted into common shares. The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock method or two-class method. Other potentially dilutive securities include preferred stock, stock options and warrants, and restricted stock. These are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. During the periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Basic loss per Share
Numerator:
Net loss available to shareholders from continuing operations	$	(14,961,744)	$	(3,373,859)
Net income available to shareholders from discontinued operations, net of tax	9,992,889		4,008,891
Net income (loss) available to common shareholders	$	(4,968,855)	$	635,032
Denominator:
Weighted-average common shares outstanding	63,372,005		47,709,450
Continuing operations	$	(0.24)	$	(0.07)
Discontinued operations, net of tax	$	0.16	$	0.08
Basic earnings (loss) per share	$	(0.08)	$	0.01

Diluted Earnings per Share
Numerator:
Net loss available to shareholders from continuing operations	$	(14,961,744)	$	(3,373,859)
Net income available to shareholders from discontinued operations, net of tax	9,992,889		4,008,891
Net income (loss) available to common shareholders	$	(4,968,855)	$	635,032
Denominator:
Weighted-average shares outstanding	63,372,005		47,709,450
Effect of dilutive securities
Stock options and warrants	—		876,886
Preferred stock	—		419,859
Diluted weighted-average shares outstanding	63,372,005		49,006,195
Continuing operations	$	(0.24)	$	(0.07)
Discontinued operations, net of tax	$	0.16	$	0.08
Diluted earnings (loss) per share	$	(0.08)	$	0.01