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Note J - Earnings Per Share
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]
Note J — Earnings Per Share
 
In periods in which the Company has net income, the Company is required to calculate earnings per share (“EPS”) using the
two
-class method. The
two
-class method is required because the Company's Series A Preferred Stock is considered a participating security with objectively determinable and non-discretionary dividend participation rights. Series A Preferred stockholders have the right to participate in dividends above their
five
percent dividend rate should the Company declare dividends on its common stock at a dividend rate higher than the
five
percent (on an as-converted basis). Under the
two
-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and the preferred stockholders. The weighted-average number of common and preferred stock outstanding during the period is then used to calculate EPS for each class of shares.
 
In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The
two
-class method is
not
used, because the calculation would be anti-dilutive.
 
Reconciliations of basic and diluted EPS are as follows:
 
   
Year Ended December 31,
In thousands, except per share amounts
 
2020
 
2019
Numerator:
               
Net loss
  $
(1,694
)   $
(26,264
)
Less: Preferred stock dividend
 
496
 
496
Numerator for basic EPS: loss attributable to common stockholders
 
(2,190
)  
(26,760
)
                 
Denominator:
               
Basic EPS denominator: weighted-average common shares outstanding
 
6,469
 
6,284
                 
Basic loss per common share
  $
(0.34
)   $
(4.26
)
Diluted loss per common share
  $
(0.34
)   $
(4.26
)
 
For the years ended 
December 31, 2020
and
2019
, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation:
32
 thousand and
0.1
 million shares of anti-dilutive market price options;
0.5
 million and
0.2
 million of anti-dilutive unvested shares; and
1.0
million and
1.0
million shares of anti-dilutive Series A Preferred Stock (as if converted).