Note 5 - (Loss) Income Per Common Share

3 Months Ended

Mar. 31, 2023

Note 5. (Loss) Income Per Common Share

We calculate basic (loss) income per common share on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted income per share is calculated using the weighted average number of shares of common stock outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock and if-converted methods.

Potential dilutive shares of common stock include outstanding unvested restricted stock awards, deferred restricted stock units, warrants and convertible preferred stock for periods in which we have reported net income. For periods in which we report net losses, potential dilutive shares of common stock are excluded, as their conversion and exercise would be anti-dilutive.

The following table represents net (loss) income per common share – basic and diluted (in thousands, except income (loss) per share):


	Three Months Ended March 31,
	2023			2022
Numerator
Net (loss) income	$	(3,173	)	$	4,153
Preferred stock dividends		(138	)		(138	)
Net (loss) income applicable to common shares	$	(3,311	)	$	4,015

Denominator
Basic weighted average common shares		600,075			538,490
Dilutive restricted stock units, warrants and deferred shares		—			5,571
Diluted weighted average common shares		600,075			544,061

Basic (loss) income per common share	$	(0.01	)	$	0.01
Diluted (loss) income per common share	$	(0.01	)	$	0.01

For the three months ended March 31, 2023, all outstanding unvested restricted stock units, deferred restricted stock units, warrants and convertible preferred stock were excluded from the computation of diluted loss per share, as our reported net loss would cause their conversion and exercise to have an anti-dilutive effect on the calculation of diluted loss per share. For the three months ended March 31, 2022, the calculation of diluted income per common share included (i) 1,954,773 incentive compensation units
that were unvested during the period, (ii) 1,506,950 warrants to purchase one share of common stock and (iii) 2,109,056 deferred shares that were dilutive.