EARNINGS PER SHARE

9 Months Ended

Sep. 30, 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 September 30, 2021 and 2020 excludes: 1) options to purchase 915,179 and 5,140,288 shares, respectively, of common stock, 2) warrants to purchase 55,563 and 8,633,193 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 0 and 3,883,449 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 0 and 7,004,236 shares, respectively, of common stock, and 5) Series A Preferred Stock which is convertible into 385,601 and 419,859 shares of common stock as of September 30, 2021 and 2020. Due to their anti-dilutive effect, the calculation of diluted earnings per share for the nine months ended September 30, 2021 and 2020 excludes: 1) options to purchase 4,195,168 and 5,140,288 shares, respectively, of common stock, 2) warrants to purchase 288,458 and 8,633,193 shares, respectively, of common stock, 3) Series B Preferred Stock which is convertible into 0 and 3,883,449 shares, respectively, of common stock, 4) Series B1 Preferred Stock which is convertible into 0 and 7,004,236 shares, respectively, of common stock, and 5) Series A Preferred Stock which is convertible into 385,601 and 419,859 shares of common stock as of September 30, 2021 and 2020.

In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our Series A Preferred Stock, Series C Preferred Stock, and Series B and B1 Preferred Stock are considered participating securities. Basic earnings per common share are calculated by dividing the net income, adjusted for preferred dividends and income allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the dilutions that would occur if any potential dilutive instruments were exercised or converted into common shares. The dilutive effect of participating securities is calculated using the more dilutive of the treasury stock method or two-class method. Other potentially dilutive securities include preferred stock, stock options and warrants, and restricted stock. These are included in diluted shares to the extent they are dilutive under the treasury stock method for the applicable periods. During the periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Basic loss per Share
Numerator:
Net income (loss) available to shareholders from continuing operations	$	7,066,459	$	(3,073,064)	$	(16,747,698)	$	(19,717,769)
Net income (loss) available to shareholders from discontinued operations, net of tax	878,357		(1,270,814)		5,281,177		(5,359,079)
Net income (loss) available to common shareholders	$	7,944,816	$	(4,343,878)	$	(11,466,521)	$	(25,076,848)
Denominator:
Weighted-average common shares outstanding	61,348,508		45,554,841		53,963,617		45,494,235
Continuing operations	$	0.12	$	(0.07)	$	(0.31)	$	(0.43)
Discontinued operations, net of tax	$	0.01	$	(0.03)	$	0.10	$	(0.12)
Basic earnings (loss) per share	$	0.13	$	(0.10)	$	(0.21)	$	(0.55)

Diluted Earnings per Share
Numerator:
Net income (loss) available to shareholders from continuing operations	$	7,066,459	$	(3,073,064)	$	(16,747,698)	$	(19,717,769)
Net income (loss) available to shareholders from discontinued operations, net of tax	878,357		(1,270,814)		5,281,177		(5,359,079)
Net income (loss) available to common shareholders	$	7,944,816	$	(4,343,878)	$	(11,466,521)	$	(25,076,848)
Denominator:
Weighted-average shares outstanding	61,348,508		45,554,841		53,963,617		45,494,235
Effect of dilutive securities
Stock options and warrants	2,871,217		—		—		—
Preferred stock	385,601		—		—		—
Diluted weighted-average shares outstanding	64,605,326		45,554,841		53,963,617		45,494,235
Continuing operations	$	0.11	$	(0.07)	$	(0.31)	$	(0.43)
Discontinued operations, net of tax	$	0.01	$	(0.03)	$	0.10	$	(0.12)
Diluted earnings (loss) per share	$	0.12	$	(0.10)	$	(0.21)	$	(0.55)