EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. Diluted earnings per share reflects the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities. Due to their anti-dilutive effect, the calculation of diluted earnings per share for the three months ended March 31, 2021 and 2020 excludes: 1) options to purchase 4,065,059 and 4,418,250 shares, respectively, of common stock, 2) warrants to purchase 1,983,510 and 8,633,193 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 2,035,666 and 3,883,449 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 5,497,450 and 7,004,236 shares, respectively, of common stock, and 5) Series A Preferred Stock which is convertible into 419,859 shares of common stock as of March 31, 2021 and 2020.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the three months ended March 31, 2021 and 2020:


	2021		2020
Basic loss per Share
Numerator:
Net income (loss) available to common shareholders	$	635,032	$	(9,453,991)
Denominator:
Weighted-average common shares outstanding	47,709,450		45,372,358
Basic loss per share	$	0.01	$	(0.21)

Diluted Earnings per Share
Numerator:
Net income (loss) available to common shareholders	$	635,032	$	(9,453,991)
Denominator:
Weighted-average shares outstanding	47,709,450		45,372,358
Effect of dilutive securities
Stock options and warrants	876,886		—
Preferred stock	419,859		—
Diluted weighted-average shares outstanding	49,006,195		45,372,358
Diluted loss per share	$	0.01	$	(0.21)