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 June 30,				Six months ended June 30,
	2018		2017		2018		2017
Numerator: Basic
Net earnings (loss) attributable to common shareholders	$	2,741	$	4,654	$	3,383	$	(9,299)
Less: Allocation to participating securities		(20)		(20)		(36)		(20)
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	2,721	$	4,634	$	3,347	$	(9,319)

Numerator: Diluted
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	2,721	$	4,634	$	3,347	$	(9,319)
Dividends and fair value adjustment on Series E Preferred Stock		-		(95)		-		-
Interest and fair value adjustment on Convertible Debt		17		(9)		13		-
Total Diluted	$	2,738	$	4,530	$	3,360	$	(9,319)

Denominator
Weighted average number of common shares - Basic		11,782,594		11,541,085		11,764,231		7,263,158
Series E Preferred Stock		-		668,111		-		-
Warrants - RES		-		23,146		-		-
Performance Based Share Awards		-		-		8,571		-
Convertible Debt		97,269		97,269		97,269		-
Weighted average number of common shares - Diluted		11,879,863		12,329,611		11,870,071		7,263,158

Earnings per Share
Basic Earnings (Loss) per Share	$	0.23	$	0.40	$	0.28	$	(1.28)
Diluted Earnings (Loss) per Share	$	0.23	$	0.37	$	0.28	$	(1.28)

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 June 30,		Six months ended June 30,
	2018	2017	2018	2017
Outstanding stock options (2)	-	481	-	481
Unvested restricted stock	91,667	15,269	95,665	7,677
Warrants - RES (2)	-	-	-	96,587
Warrants - Employees (2)	-	66,153	22,295	66,153
Series D Preferred Stock (2)	-	-	-	1,957,300
Series E Preferred Stock	668,111	-	668,111	450,239
Convertible debt	-	-	-	97,269
LTIP common units (1) (2)	-	98,989	-	100,095
Operating partnership common units (1)	92,499	65,920	91,064	58,539
Total potentially dilutive securities excluded from the denominator	852,277	246,812	877,135	2,834,340

(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 periods presented. These instruments were no longer outstanding at June 30, 2018.