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Earnings Per Share
9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share
9.
 
EARNINGS PER SHARE
Earnings
 
per
 
share
 
(“EPS”)
 
for
 
common
 
stock
 
is
 
calculated
 
using
 
the
 
two-class
 
method
 
required
 
for
 
participating
securities. Basic EPS
 
is calculated by
 
dividing net income
 
(loss) available to
 
common stockholders by the
 
weighted-average
number of common shares outstanding for
 
the period, without consideration for common
 
stock equivalents. Diluted EPS is
computed by
 
dividing net
 
income (loss)
 
available to
 
common stockholders
 
by the
 
weighted-average
 
number
 
of common
shares outstanding for
 
the period and
 
the weighted-average number
 
of dilutive common
 
stock equivalents outstanding
 
for
the period determined using the treasury-stock method. For
 
purposes of this calculation, common stock equivalents include
common stock options and are only included in the calculation
 
of diluted EPS when their effect is dilutive.
 
To
 
calculate
 
EPS
 
for
 
the
 
three
 
and
 
nine
 
months
 
ended
 
September 30,
 
2022,
 
net
 
income
 
available
 
to
 
common
stockholders was
 
not allocated between
 
Class A and
 
Class B common
 
stock since
 
there were
no
 
issued and outstanding
shares of Class B common stock as of September 30, 2022.
To
 
calculate
 
EPS
 
for
 
the
 
three
 
and
 
nine
 
months
 
ended
 
September 30,
 
2021,
 
net
 
income
 
available
 
to
 
common
stockholders was allocated as if all the income for
 
the period were distributed to common stockholders.
 
The allocation was
based on the
 
outstanding shares per
 
common share class to
 
the total
 
common shares outstanding during
 
each period giving
effect for the 1 for
 
5 reverse stock split.
 
The Company’s Articles
 
of Incorporation require that
 
the distribution of net
 
income
to Common B
 
stockholders be
 
adjusted to
 
give effect
 
for Class
 
A stock splits.
 
Therefore, the
 
income allocated
 
to Class
 
B
common shares was calculated based on their
20
% per share equivalent to Class A common shares.
The
 
following
 
table
 
reflects
 
the
 
calculation
 
of
 
net
 
income
 
available
 
to
 
common
 
stockholders
 
for
 
the
 
three
 
and
 
nine
months ended September 30, 2022 and 2021 (in thousands):
The following table reflects the calculation of basic and diluted earnings per common share class for the three and nine
months ended September 30, 2022 and 2021 (in thousands,
 
except per share amounts):
See Note 8 “Stockholders’ Equity” for further discussion
 
of the reverse stock split effected in 2021.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net Income
$
5,558
$
6,593
$
15,707
$
15,427
Less: Preferred stock dividends
 
-
542
-
2,077
Less: Exchange and redemption of preferred shares
-
89,585
-
89,585
Net income (loss) available to common stockholders
$
5,558
$
(83,534)
$
15,707
$
(76,235)
Three Months Ended September 30,
2022
2021
Class A
Class B
 
Class A
Class B
(1)
Basic EPS
Numerator:
Net income (loss) available to common shares before allocation
$
5,558
$
-
$
(83,534)
$
(83,534)
Multiply: % allocated on weighted avg. shares outstanding
100.0%
-
92.5%
7.5%
Net income (loss) available to common shares after allocation
$
5,558
$
-
$
(77,278)
$
(6,256)
Denominator:
Weighted average shares outstanding
20,000,753
-
15,121,460
6,121,052
Earnings (loss) per share, basic
$
0.28
$
-
$
(5.11)
$
(1.02)
Diluted EPS
Numerator:
Net income (loss) available to common shares before allocation
$
5,558
$
-
$
(83,534)
$
(83,534)
Multiply: % allocated on weighted avg. shares outstanding
100.0%
-
92.5%
7.5%
Net income (loss) available to common shares after allocation
$
5,558
$
-
$
(77,278)
$
(6,256)
Denominator:
Weighted average shares outstanding for basic EPS
20,000,753
-
15,121,460
6,121,052
Add: Dilutive effects of assumed exercises of stock options
147,455
-
-
-
Weighted avg. shares including dilutive potential common shares
20,148,208
-
15,121,460
6,121,052
Earnings (loss) per share, diluted
$
0.28
$
-
$
(5.11)
$
(1.02)
Anti-dilutive stock options excluded from diluted EPS
15,000
-
95,602
-
(1)
 
Net loss available to common shares between Class
 
A and Class B common stock was allocated based
 
on the weighted average number of shares
outstanding. The allocation also assumes that
 
Class B shares had converted to Class
 
A shares which is equivalent to
0.20
 
per share of Class B or
1,224,212
 
shares of Class A shares.
Nine Months Ended September 30,
2022
2021
Class A
Class B
 
Class A
Class B
(1)
Basic EPS
Numerator:
Net income (loss) available to common shares before allocation
$
15,707
$
-
$
(76,235)
$
(76,235)
Multiply: % allocated on weighted avg. shares outstanding
100.0%
-
86.2%
$
13.8%
Net income (loss) available to common shares after allocation
$
15,707
$
-
$
(65,747)
$
(10,488)
Denominator:
Weighted average shares outstanding
19,998,841
-
7,674,609
6,121,052
Earnings (loss) per share, basic
$
0.79
$
-
$
(8.57)
$
(1.71)
Diluted EPS
Numerator:
Net income (loss) available to common shares before allocation
$
15,707
$
-
$
76,235
$
76,235
Multiply: % allocated on weighted avg. shares outstanding
100.0%
-
86.2%
13.8%
Net income (loss) available to common shares after allocation
$
15,707
$
-
$
(65,747)
$
(10,488)
Denominator:
Weighted average shares outstanding for basic EPS
19,998,841
-
7,674,609
6,121,052
Add: Dilutive effects of assumed exercises of stock options
179,248
-
-
-
Weighted avg. shares including dilutive potential common shares
20,178,089
-
7,674,609
6,121,052
Earnings (loss) per share, diluted
$
0.78
$
-
$
(8.57)
$
(1.71)
Anti-dilutive stock options excluded from diluted EPS
15,000
-
168,709
-
(1)
 
Net loss available to common shares between Class
 
A and Class B common stock was allocated based
 
on the weighted average number of shares
outstanding. The allocation also assumes that
 
Class B shares had converted to Class
 
A shares which is equivalent to
0.20
 
per share of Class B or
1,224,212
 
shares of Class A shares.