Note 10 - Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

10

. Net Income (Loss) per Common Share

The Company considers its unexercised warrants and unvested restricted shares, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the

two

-class method. Basic earnings per share for the

two

classes of stock (common stock and warrants) is calculated by dividing net income by the weighted average number of shares of common stock and warrants outstanding during the reporting period. Diluted earnings per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the

two

class method and the treasury stock method, whichever is more dilutive.

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

month period ended

March 31, 2020,

we excluded

1.9

million common stock options,

2.7

million warrants, and a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the

three

month period ended

March 31, 2019,

we excluded

2.7

million common stock options,

3.0

million warrants, and a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table presents computations of basic and diluted earnings per share under the

two

class method:

	Three Month s Ended March 31,
(In thousands, except per share and share data)	2 020			201 9
Numerator:
Net income (loss) attributable to common stockholders:
Basic	$	18,364		$	(19,161	)
Diluted	$	(174	)	$	(19,161	)
Denominator:
Basic and diluted weighted average shares outstanding		21,010,817			18,648,397
Basic earnings per share	$	0.87		$	(1.03	)
Diluted earnings per share	$	(0.01	)	$	(1.03	)