EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

In accordance with ASC 260, outstanding instruments that contain rights to non-forfeitable dividends are considered participating securities. The Company is required to apply the two-class method or the treasury stock method of computing basic and diluted earnings per share when there are participating securities outstanding. The Company has determined that outstanding unvested restricted shares issued under the Manager Equity Plan are participating securities, and they are therefore included in the computation of basic and diluted earnings per share. The following tables provide additional disclosure regarding the computation for the years ended December 31, 2021 and December 31, 2020:


	Year Ended December 31, 2021				Year Ended December 31, 2020
Net income			$	10,527,222			$	8,449,770
Less dividends expense:
Common stock	$	8,980,832			$	9,103,997
Preferred stock	3,112,500				15,000
			12,093,332				9,118,997
Undistributed earnings (deficit)			$	(1,566,110)			$	(669,227)


	Unvested Share-Based Payment Awards		Common Stock		Unvested Share-Based Payment Awards		Common Stock
Distributed earnings	$	0.36	$	0.36	$	0.37	$	0.37
Undistributed earnings (deficit)	$	—	$	(0.06)	—		(0.03)
Total	$	0.36	$	0.30	$	0.37	$	0.34


	For the years ended December 31,
	2021	2020
Basic weighted average shares of common stock outstanding	24,941,324	24,930,079
Weighted average of non-vested restricted stock	4,500	4,426
Diluted weighted average shares of common stock outstanding	24,945,824	24,934,505