Note 7 - Earnings Per Share

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

7.     Earnings per Share

Basic earnings per share excludes the dilutive effects of stock options, restricted stock units (RSUs), warrants, and the nil coupon non-redeemable convertible unsecured loan notes. Diluted earnings per share includes the dilutive effect of the nil coupon non-redeemable convertible unsecured loan notes, RSUs, warrants, and unexercised in-the-money stock options, except in periods of net loss where the effect of these instruments is anti-dilutive. Out-of-money stock options and warrants are excluded from diluted earnings per share because they are unlikely to be exercised and would be anti-dilutive if they were exercised. For the three months ended March 31 2022, basic earnings per share is equal to diluted earnings per share because all outstanding stock awards, warrants, and convertible loan notes are considered anti-dilutive during periods of net loss. For the three months ended March 31, 2021, basic earnings per share has been adjusted to include dilutive options and RSU's.

The following table sets forth the weighted-average shares used in calculating the earnings per share for the three months ended March 31, 2022 and 2021.

	Three Months Ended
	March 31,
	2022		2021
Basic weighted-average shares		30,267,000		27,510,000
Conversion of unsecured loan notes		—		—
Unexercised options and unvested RSUs		—		227,000
Diluted weighted-average shares		30,267,000		27,737,000

For the three months ended March 31, 2022 and 2021, Fuel Tech had outstanding equity awards of 346,500 and 144,500, respectively, and warrants of 2,850,000 in both periods, which were antidilutive for the purpose of the calculation of diluted earnings per share. For the three month period ended March 31, 2022, Fuel Tech had 56,000 incremental equity awards that were excluded from the computation of diluted earnings per share as the inclusion of such would have been anti-dilutive due to a net loss in the period. These equity awards could potentially dilute basic earnings per share in future years.