Earnings per share

12 Months Ended

Dec. 31, 2020

Earnings per share

Earnings per share

12. 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:

	Year Ended December 31,
	2020		2019
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	8,613,771	$	10,888,178
Less: preferred stock dividends		(11,740)		(11,937)
Net income from continuing operations available to common shares in the determination of basic earnings per common share		8,602,031		10,876,241
Total income (loss) from discontinued operations		(4,902,243)		1,287,915
Net income available to common shares in the determination of basic earnings per common share	$	3,699,788	$	12,164,156
Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,119,305		15,025,639
Plus:
Weighted average number of preferred shares outstanding during the period		33,814		33,983
Potential dilutive effect of unexercised options and unvested stock grants		70,836		77,454
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,223,955		15,137,076