Stockholders' Deficit and Income (Loss ) Per Share

3 Months Ended

Mar. 31, 2022

Stockholders' Deficit and Income (Loss ) Per Share [Line Items]

Stockholders' Equity Note Disclosure [Text Block]

Note 10 – Stockholders’ Deficit and Income (Loss) Per Share

The following table presents the calculation of income (loss) per share for the three months ended March 31, 2022 and 2021:

	Three months ended March 31
In thousands, except per share data	2022		2021
Numerator:
Net income (loss), as reported	$	493	$	(621)
Denominator:
Weighted average shares outstanding – basic		13,446		13,696
Weighted average shares outstanding – diluted		13,531		13,696
Basic and diluted earnings (loss) per share – basic and diluted	$	0.04	$	(0.05)

Basic earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is computed by dividing net income (loss) attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

As of March 31, 2022, the Company included the effects of the 280,000 stock options outstanding in the calculation of diluted income per share. As of March 31, 2022 and 2021, the Company had other warrants to purchase 1.6 million shares of Common Stock outstanding, which were excluded from the calculation of diluted income (loss) per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.

On March 28, 2022, the Company issued 280,000 stock options to executives and employees at an exercise price of $0.40 per share, which become vested on March 28, 2023.  The options were valued at the grant date using the Black-Scholes model with the following inputs:  expiration date March 28, 2026; risk-free rate of return 2.55%; and volatility 108%.

A summary of the status of the Company’s stock options as of March 31, 2022 and the changes during the three months then ended is presented below:

	Number of Options		Weighted Average Exercise Price		Weighted average remaining contractual life  (in years)		Average intrinsic value
Outstanding at December 31, 2021		-		-		-		-
Granted		280,000	$	0.40
Expired		-		-
Outstanding at March 31, 2022		280,000	$	0.40		4.0	$	0.19
Exercisable at the end of the period		-		-		-		-

Equity based compensation was $0 for the three months ended March 31, 2022 and 2021.  The total unrecognized equity based compensation cost related to unvested stock options was approximately $152,000 as of March 31, 2022 and will be recognized over the vesting period.