Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Note 16 - Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or otherwise result in the issuance of common stock that shared in the earnings of the entity. Diluted EPS also utilizes the treasury stock method which prescribes a theoretical buy back of shares from the theoretical proceeds of all options outstanding during the period, and the if-converted method for convertible debt.

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands):

	For the three months ended
	March 31, 2022		March 31, 2021
Net income - basic	$	12,494	$	1,057
Interest on unsecured convertible promissory note		232		-
Net income - diluted	$	12,726	$	1,057
Weighted average shares outstanding - basic		15,486		14,563
Diluted shares- Stock Options		2,232		2,895
Diluted shares- Stock Warrants		222		284
Unsecured convertible promissory note		800		458
Weighted average shares outstanding - diluted		18,740		18,200

The following table represents the number of securities excluded from the income per share computation as a result of their anti-dilutive effect (in thousands):

	For the three months ended
Anti-dilutive securities	March 31, 2022		March 31, 2021
Common stock purchase warrants		455		455
Stock Options		810		-
Anti-dilutive securities		1,265		455