Earnings per share

6 Months Ended

Jun. 30, 2020

Earnings per share

Earnings per share

4. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method.

The following summarizes information related to the computation of basic and diluted EPS:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	(1,127,842)	$	2,476,262	$	1,760,765	$	5,041,523
Less: preferred stock dividends		(3,420)		(3,410)		(6,289)		(6,199)
Net income (loss) from continuing operations available to common shares in the determination of basic earnings per common share		(1,131,262)		2,472,852		1,754,476		5,035,324
Total income from discontinued operations		—		—		—		3,621,170
Net income (loss) available to common shares in the determination of basic earnings per common share	$	(1,131,262)	$	2,472,852	$	1,754,476	$	8,656,494
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,114,506		15,020,344		15,114,506		15,020,344
Plus:
Weighted average number of preferred shares outstanding during the period		—		34,183		34,438		33,834
Potential dilutive effect of unexercised options and unvested stock grants		—		131,285		120,231		131,285
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,114,506		15,185,812		15,269,175		15,185,463