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,
	2018		2017		2016
Numerator: Basic (1)
Net earnings (loss) attributable to common shareholders:
Continuing operations	$	4,787	$	(9,362)	$	1,390
Discontinued operations		-		-		657
Total Net earnings (loss) attributable to common shareholders		4,787		(9,362)		2,047
Less: Allocation to participating securities		(67)		(56)		-
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	4,720	$	(9,418)	$	2,047

Numerator: Diluted (1)
Net earnings (loss) attributable to common shareholders from continuing operations, net of amount allocated to participating securities	$	4,720	$	(9,418)	$	1,390
Dividends on Series D Preferred Stock		-		-		3,090
Interest and fair value adjustment on Convertible Debt		(6)		-		-
Continuing operations - Diluted		4,714		(9,418)		4,480
Discontinued operations - Diluted		-		-		657
Total Diluted	$	4,714	$	(9,418)	$	5,137

Denominator
Weighted average number of common shares - Basic		11,784,222		9,437,824		761,112
Performance Based Share Awards		4,285		-		-
Series D Preferred Stock		-		-		4,774,433
Convertible Note		97,269		-		-
Weighted average number of common shares - Diluted		11,885,776		9,437,824		5,535,545

Earnings Per Share
Continuing operations - Basic	$	0.40	$	(1.00)	$	1.82
Discontinued operations - Basic		-		-		0.85
Total - Basic Earnings (Loss) per Share	$	0.40	$	(1.00)	$	2.67

Continuing operations - Diluted	$	0.40	$	(1.00)	$	0.78
Discontinued operations - Diluted		-		-		0.13
Total - Basic Earnings (Loss) per Share	$	0.40	$	(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,
	2018	2017	2016
Outstanding stock options (2)	-	258	865
Unvested restricted stock	79,456	48,869	-
Warrants - RES (2)	-	53,608	576,923
Warrants - Employees (2)	11,056	66,153	66,153
Series C Preferred Stock (2)	-	-	598,991
Series D Preferred Stock (2)	-	970,606	-
Series E Preferred Stock	668,111	560,115	-
Convertible debt	-	97,269	77,336
LTIP common units (1) (2)	-	49,636	101,213
Operating partnership common units (1)	86,255	70,722	46,265
Total potentially dilutive securities excluded from the denominator	844,878	1,917,236	1,467,746

(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 period presented. These instruments were no longer outstanding at December 31, 2018.