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,
	2019		2018		2017
Numerator: Basic (1)
Net earnings (loss) attributable to common shareholders	$	(5,626)	$	4,787	$	(9,362)
Less: Allocation to participating securities		(38)		(67)		(56)
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(5,664)	$	4,720	$	(9,418)

Numerator: Diluted (1)
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(5,664)	$	4,720	$	(9,418)
Interest and fair value adjustment on Convertible Debt		-		(6)		-
Total Diluted	$	(5,664)	$	4,714	$	(9,418)

Denominator
Weighted average number of common shares - Basic		11,856,113		11,784,222		9,437,824
Performance Based Share Awards		-		4,285		-
Convertible Note		-		97,269		-
Weighted average number of common shares - Diluted		11,856,113		11,885,776		9,437,824

Earnings Per Share
Basic Earnings (Loss) per Share	$	(0.48)	$	0.40	$	(1.00)
Diluted Earnings (Loss) per Share	$	(0.48)	$	0.40	$	(1.00)

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,
	2019	2018	2017
Outstanding stock options (2)	-	-	258
Unvested restricted stock	62,742	79,456	48,869
Warrants - RES (2)	-	-	53,608
Warrants - Employees (2)	-	11,056	66,153
Series D Preferred Stock (2)	-	-	970,606
Series E Preferred Stock	668,111	668,111	560,115
Convertible debt	97,269	-	97,269
LTIP common units (1) (2)	-	-	49,636
Operating partnership common units (1)	54,330	86,255	70,722
Total potentially dilutive securities excluded from the denominator	882,452	844,878	1,917,236

(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, 2019.