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:


	Three months ended March 31,
	2018		2017
Numerator: Basic
Net earnings (loss) attributable to common shareholders	$	642	$	(13,953)
Less: Allocation to participating securities		(19)		-
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	623	$	(13,953)

Numerator: Diluted
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	623	$	(13,953)

Denominator
Weighted average number of common shares - Basic		11,745,665		2,937,698
Unvested stock		17,141		-
Weighted average number of common shares - Diluted		11,762,806		2,937,698

Earnings per Share
Basic Earnings (Loss) per Share	$	0.05	$	(4.75)
Diluted Earnings (Loss) per Share	$	0.05	$	(4.75)

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:


	Three months ended March 31,
	2018	2017
Outstanding stock options	-	865
Unvested restricted stock	99,663	-
Warrants - RES	-	170,830
Warrants - Employees (2)	44,837	66,153
Series D Preferred Stock	-	3,936,347
Series E Preferred Stock	668,111	230,127
Convertible debt	97,269	97,269
LTIP common units (1)	-	101,213
Operating partnership common units (1)	89,614	51,076
Total potentially dilutive securities excluded from the denominator	999,494	4,653,880

(1)

LTIP and common units of the operating partnership 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 quarter. This instrument was no longer outstanding at March 31, 2018.