2.	EARNINGS PER SHARE

The Company presents basic and diluted earnings (loss) per share using the two-class method which requires all outstanding Series A Preferred Stock and unvested restricted stock that contain rights to non-forfeitable dividends and therefore participate in undistributed earnings with common shareholders be included in computing earnings per share. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating security. The remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. Series A Preferred Stock and unvested restricted stock contain non-forfeitable rights to dividends on an if-converted basis and on the same basis as common shares, respectively, and are considered participating securities. Basic earnings (loss) per share has been computed by dividing net income (loss) allocated to common shareholders by the weighted-average number of common shares outstanding.

The Series A Preferred Stock and unvested restricted stock are not included in the computation of basic earnings (loss) per share in periods in which we have a net loss, as the Series A Preferred Stock and unvested restricted stock are not contractually obligated to share in our net losses. However, the cumulative dividends on preferred stock for the period increases the net loss allocated to common stockholders. The basic and diluted net loss amounts are the same for the three months ended March 31, 2020 and 2019 as a result of the net loss and anti-dilutive impact of the potentially dilutive securities. For the three months ended March 31, 2019 earnings (loss) per share was calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options, unvested restricted stock and Series A Preferred Stock. The Company uses the more dilutive method of calculating the diluted earnings per share by applying the more dilutive of either (a) the treasury stock method, if-converted method, or (b) the two-class method in its diluted EPS calculation. Potentially dilutive shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of restricted stock. Potentially dilutive shares issuable upon conversion of the Series A Preferred Stock are calculated using the if-converted method.

The following is a reconciliation of the numerator and denominator of the diluted net loss per share computations for the periods presented below:

	Three Months Ended
(in thousands, except share data)	2020			2019
Numerator:
Net loss	$	(1,750	)	$	(5,467	)
Less: preferred stock dividend		(308	)		-
Less: allocation to preferred stockholders		-			-
Less: allocation to restricted stockholders		-			-
Net loss allocated to common stockholders	$	(2,058	)	$	(5,467	)

Basic loss per share:
Denominator:
Weighted average common shares outstanding		24,598,346			24,534,207
Basic loss per share	$	(0.08	)	$	(0.22	)

Diluted loss per share:
Denominator:
Weighted average number of:
Common shares outstanding		24,598,346			24,534,207
Dilutive potential common shares outstanding:
Series A Preferred Stock		-			-
Unvested restricted stock		-			-
Stock options		-			-
Dilutive shares outstanding		24,598,346			24,534,207
Diluted loss per share	$	(0.08	)	$	(0.22	)

The following table summarizes the potential weighted average shares of common stock that were excluded from the determination of our diluted shares outstanding as they were anti-dilutive:

	Three Months Ended
(in thousands, except share data)	2020		2019
Series A Preferred Stock		5,448,802		-
Unvested restricted stock		613,701		175,675
		6,062,503		175,675