EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

(Loss) income per share:

EARNINGS PER SHARE

3. EARNINGS PER SHARE

The Company computes earnings per share in accordance with ASC Topic 260 Earnings per Share (“ASC 260”), which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the two-class method. The two-class method is an allocation of earnings (distributed and undistributed) between the holders of common stock and a company’s participating security holders. Under the two-class method, earnings for the reporting period are allocated between common stockholders and other security holders based on their respective participation rights in undistributed earnings.

Basic earnings per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of basic common stock outstanding. The Company’s Series A Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. Net income allocated to the holders of Series A Convertible Preferred Stock consistent of preferred dividends declared and paid during 2022. The Series A Convertible Preferred Stock do not participate in losses, thus no such losses have been allocated to the Series A Convertible Preferred Stock in the periods presented below.

For purposes of determining diluted earnings per common share, basic earnings per common share was further adjusted to include the effect of potential dilutive common shares outstanding, including unvested restricted stock and performance-based stock units, using the more dilutive of either the two-class method or the treasury stock method, and Series A Convertible Preferred Stock using the if-converted method. Stock options and warrants that were out-of-the-money were not included in the denominator for the calculation of diluted EPS. Under the two-class method of calculating diluted earnings per share, net income is reallocated to common stock, the Series A Convertible Preferred Stock, and all dilutive securities based on the contractual participating rights of the security to share in the current earnings as if all of the earnings for the period had been distributed.

	For the years ended December 31,
	2022			2021		2020
Net (loss) income attributed to common stockholders
Net (loss) income	$	(187,282	)	$	3,937	$	8,524
Less: dividends paid to Series A convertible preferred stockholders		(11,526	)		-		-
Net (loss) income attributed to common stockholders	$	(198,808	)	$	3,937	$	8,524
Net (loss) income per common share:
Basic	$	(2.63	)	$	0.05	$	0.12
Dilutive	$	(2.63	)	$	0.05	$	0.11
Weighted average common stock outstanding:
Basic		75,649			73,781		70,195
Dilutive		75,649			77,689		74,444

For the year ended December 31, 2022, 10.2 million of potentially dilutive securities were excluded from the computation of diluted net loss per share related to common stockholders as their effect was antidilutive.