Earnings Per Common Share

9 Months Ended

Dec. 31, 2021

PER COMMON SHARE

The following table reconciles the income (loss) available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted income (loss) per share for the following periods:


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands except per share data	2021		2020		2021		2020
Net income (loss)	$	696	$	(1,310)	$	(976)	$	(2,931)
Less: Undistributed earnings attributable to dilutive shares	240		—		—		—
Net income (loss) available to common shareholders	$	456	$	(1,310)	$	(976)	$	(2,931)

Weighted average common shares outstanding - basic	3,573,707		2,980,655		3,485,120		3,485,488
Effect of dilutive shares	35,832		—		—		—
Weighted average common shares outstanding – diluted	3,609,539		2,980,655		3,485,120		3,485,488

Basic earnings (loss) per common share	$	0.13	$	(0.44)	$	(0.28)	$	(0.84)
Diluted earnings (loss) per common share	0.13		(0.44)		(0.28)		(0.84)

The Company has preferred stock which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three months ended December 31, 2020, and the nine months ended December 31, 2021 and 2020, all restricted shares and outstanding stock options were anti-dilutive.