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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Numerator: Basic
Net loss attributable to common shareholders	$	(4,976)	$	(2,123)	$	(14,485)	$	(3,660)
Less: Allocation to participating securities		-		-		-		(28)
Net loss attributable to common shareholders, net of amount allocated to participating securities	$	(4,976)	$	(2,123)	$	(14,485)	$	(3,688)

Numerator: Diluted
Net loss attributable to common shareholders, net of amount allocated to participating securities	$	(4,976)	$	(2,123)	$	(14,485)	$	(3,688)

Denominator
Weighted average number of common shares - Basic and Diluted		11,971,793		11,862,204		11,961,700		11,842,746

Earnings (Loss) per Share
Basic Earnings (Loss) per Share	$	(0.42)	$	(0.18)	$	(1.21)	$	(0.31)
Diluted Earnings (Loss) per Share	$	(0.42)	$	(0.18)	$	(1.21)	$	(0.31)

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 September 30,		Nine months ended September 30,
	2020	2019	2020	2019
Unvested restricted stock	36,485	52,847	40,231	67,149
Series E Preferred Stock	668,111	668,111	668,111	668,111
Convertible debt	97,269	97,269	97,269	97,269
Operating partnership common units (1)	4,215	57,740	4,215	59,190
Total potentially dilutive securities excluded from the denominator	806,080	875,967	809,826	891,719

(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.