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,
	2020		2019		2018
Numerator: Basic
Net earnings (loss) attributable to common shareholders	$	(19,681)	$	(5,626)	$	4,787
Less: Allocation to participating securities		-		(38)		(67)
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(19,681)	$	(5,664)	$	4,720

Numerator: Diluted
Net earnings (loss) attributable to common shareholders, net of amount allocated to participating securities	$	(19,681)	$	(5,664)	$	4,720
Interest and fair value adjustment on Convertible Debt		-		-		(6)
Total Diluted	$	(19,681)	$	(5,664)	$	4,714

Denominator
Weighted average number of common shares - Basic		11,966,982		11,856,113		11,784,222
Performance Based Share Awards		-		-		4,285
Convertible Note		-		-		97,269
Weighted average number of common shares - Diluted		11,966,982		11,856,113		11,885,776

Earnings Per Share
Basic Earnings (Loss) per Share	$	(1.59)	$	(0.48)	$	0.40
Diluted Earnings (Loss) per Share	$	(1.59)	$	(0.48)	$	0.40

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,
	2020	2019	2018
Unvested restricted stock	38,012	62,742	79,456
Warrants - Employees (2)	-	-	11,056
Series E Preferred Stock	668,111	668,111	668,111
2016 Convertible Note	97,269	97,269	-
2020 Convertible Note	459,016	-	-
Operating partnership common units (1)	4,215	54,330	86,255
Total potentially dilutive securities excluded from the denominator	1,266,623	882,452	844,878

(1)

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, 2020.