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,
	2019		2018
Numerator: Basic
Net earnings (loss) attributable to common shareholders	$	(129)	$	642
Less: Allocation to participating securities		(17)		(19)
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(146)	$	623

Numerator: Diluted
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(146)	$	623

Denominator
Weighted average number of common shares - Basic		11,817,677		11,745,665
Unvested stock		-		17,141
Weighted average number of common shares - Diluted		11,817,677		11,762,806

Earnings per Share
Basic Earnings (Loss) per Share	$	(0.01)	$	0.05
Diluted Earnings (Loss) per Share	$	(0.01)	$	0.05

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,
	2019	2018
Unvested restricted stock	82,168	99,663
Warrants - Employees (2)	-	44,837
Series E Preferred Stock	668,111	668,111
Convertible debt	97,269	97,269
Operating partnership common units (1)	61,767	89,614
Total potentially dilutive securities excluded from the denominator	909,315	999,494

(1)

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 March 31, 2019.