NOTE 14. EARNINGS PER SHARE

The two-class method is utilized to compute earnings per common share (“EPS”) as our unvested restricted stock awards with non-forfeitable dividends are considered participating securities. Under the two-class method, losses are allocated only to those securities that have a contractual obligation to share in the losses of the Company. Our unvested restricted stock is not obligated to absorb Company losses and accordingly is not allocated losses. The following is a reconciliation of basic and diluted EPS:



	Year ended December 31,
	2017		2016		2015
Numerator: Basic (1)
Net earnings (loss) attributable to common shareholders:
Continuing operations	$	(9,362)	$	1,390	$	6,055
Discontinued operations		-		657		3,438
Total Net earnings (loss) attributable to common shareholders		(9,362)		2,047		9,493
Less: Allocation to participating securities		(56)		-		-
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(9,418)	$	2,047	$	9,493

Numerator: Diluted (1)
Net earnings (loss) attributable to common shareholders from continuing operations, net of amount allocated to participating securities	$	(9,418)	$	1,390	$	6,055
Dividends on Series C Preferred Stock		-		-		2,074
Dividends on Series D Preferred Stock		-		3,090		-
Unrealized gain on warrant derivative		-		-		(4,122)
Unrealized gain on Series C Preferred Embedded Derivative		-		-		(7,533)
Continuing operations - Diluted		(9,418)		4,480		(3,526)
Discontinued operations - Diluted		-		657		3,438
Total Diluted	$	(9,418)	$	5,137	$	(88)

Denominator
Weighted average number of common shares - Basic		9,437,824		761,112		751,634
Unvested stock		-		-		619
Series C Preferred Stock		-		-		2,884,615
Series D Preferred Stock		-		4,774,433		-
Warrants - Employees		-		-		106
Warrants - RES		-		-		(61,504)
Weighted average number of common shares - Diluted		9,437,824		5,535,545		3,575,470

Earnings Per Share
Continuing operations - Basic	$	(1.00)	$	1.82	$	8.06
Discontinued operations - Basic		-		0.85		4.55
Total - Basic Earnings (Loss) per Share	$	(1.00)	$	2.67	$	12.61

Continuing operations - Diluted	$	(1.00)	$	0.78	$	(0.98)
Discontinued operations - Diluted		-		0.13		0.98
Total - Basic Earnings (Loss) per Share	$	(1.00)	$	0.91	$	-

(1)

The loss (earnings) attributable to noncontrolling interest is allocated between continuing and discontinued operations for the purpose of the EPS calculation

The following table summarizes the weighted average number of potentially dilutive securities that have been excluded from the denominator for the purpose of computing diluted EPS as they are antidilutive:


	Year ended December 31,
	2017	2016	2015
Outstanding stock options (2)	258	865	865
Unvested restricted stock	48,869	-	-
Warrants - RES (2)	53,608	576,923	-
Warrants - Employees	66,153	66,153	55,249
Series C Preferred Stock	-	598,991	-
Series D Preferred Stock (2)	970,606	-	-
Series E Preferred Stock	560,115	-	-
Convertible debt	97,269	77,336	-
LTIP common units (1) (2)	49,636	101,213	84,576
Operating partnership common units (1)	70,722	46,265	13,008
Total potentially dilutive securities excluded from the denominator	1,917,236	1,467,746	153,698

(1)

LTIP and common units have been omitted from the denominator for the purpose of computing diluted EPS since the effect of including these amounts in the numerator and denominator would have no impact on calculated EPS.

(2)

Amounts above are weighted average amounts outstanding for the year. These instruments were no longer outstanding at December 31, 2017.