Note 3 - Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 3. NET INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share is calculated by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, stock options and warrants, calculated using the treasury stock and if-converted methods. For diluted income (loss) per share calculation purposes, the net income (loss) available to common shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the condensed consolidated statement of income (loss) for the respective periods.

The table below presents the computation of basic and diluted income (loss) per share:

(Amounts in thousands except share and per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Numerator for basic and diluted income (loss) per share:
Net income (loss)	$	490		$	(626	)	$	9,871		$	(6,652	)
Preferred dividends, deemed dividends and accretion		(1,935	)		(2,529	)		(6,260	)		(5,275	)
Net income (loss)available to common shareholders	$	(1,445	)	$	(3,155	)	$	3,611		$	(11,927	)
Effective of dilutive securities:
Preferred dividends, deemed dividends and accretion		—			—			—			—
Net income (loss) available to common shareholders after assumed conversions		(1,445	)		(3,155	)		3,611			(11,927	)
Denominator for basic income (loss) per share – weighted-average shares outstanding		340,384,468			133,341,134			326,458,778			125,558,524
Effect of dilutive securities:
Options		—			—			82,942,500			—
Warrants		—			—			2,919,631			—
Convertible preferred stock		—			—			—			—
Denominator for diluted income (loss) – adjusted weighted average shares and assumed conversions		340,384,468			133,341,134			412,320,909			125,558,524
Basic income (loss) per share available to common shareholders	$	(0.00	)	$	(0.02	)	$	0.01		$	(0.09	)
Diluted income (loss) per share available to common shareholders	$	(0.00	)	$	(0.02	)	$	0.01		$	(0.09	)

The following table sets forth Common share equivalents at September 30, 2021 and December 31, 2020:

Potential Dilutive Securities:	Common Share Equivalents at September 30, 2021		Common Share Equivalents at December 31, 2020
Convertible redeemable preferred stock - Series A		-		74,555,000
Convertible redeemable preferred stock - Series A-1		-		73,910,000
Convertible redeemable preferred stock - Series B		47,001		46,029
Convertible redeemable preferred stock - Series D		393,917,667		392,166,023
Stock options		83,144,875		2,585,500
Restricted stock units (RSUs)		83,802		845,106
Warrants		3,150,000		753,775
Total Potential Dilutive Securities		480,343,345		544,861,433