Note 8 - Earnings Per Share

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

8. Earnings Per Share

Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding as determined by the treasury method during the period. In periods when we have a net loss, common stock equivalents are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. For the

three

and

nine

month periods ended

September 30, 2018,

we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the

three

and

nine

month periods ended

September 30, 2017,

we excluded

3.4

million common stock options,

7.4

million warrants, and

259,000

unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table shows the calculation of basic and diluted earnings per shares:

	Three Month Period Ended					Nine Month Period Ended
	September 30,					September 30,
	2018		2017			2018		2017
Numerator:
Net income (loss) attributable to common stockholders	$	1,151,094	$	(424,968	)	$	2,094,246	$	(2,063,470	)
Denominator:
Weighted average basic shares outstanding		17,273,412		13,238,248			15,529,026		13,102,238
Effect of dilutive securities		6,383,221		—			5,522,193		—
Weighted average diluted shares		23,656,633		13,238,248			21,051,219		13,102,238
Basic earnings per share	$	0.07	$	(0.03	)	$	0.13	$	(0.16	)
Diluted earnings per share	$	0.05	$	(0.03	)	$	0.10	$	(0.16	)