Note 8 – Loss Per Share

The following table presents the calculation of (loss) earnings per share for the three and six months ended June 30, 2017 and 2016:


	Three months ended June 30				Six months ended June 30
In thousands	2017		2016		2017		2016
Numerator:
Net (loss) income, as reported	$	(1,254)	$	82	$	(2,509)	$	(1,035)
Change in dividends accumulated on preferred shares		(49)		(50)		(99)		(99)
Net (loss) income attributable to common shares	$	(1,303)	$	32	$	(2,608)	$	(1,134)
Denominator:
Weighted average shares outstanding		1,711		1,711		1,711		1,711
Basic and diluted (loss) earnings per share	$	(0.76)	$	0.02	$	(1.52)	$	(0.66)

Basic (loss) earnings per common share is computed by dividing net (loss) income attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted (loss) earnings per common share is computed by dividing net (loss) income attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

At June 30, 2017 and 2016, the Company accumulated unpaid dividends of $44,000 related to the Preferred Stock.

On April 18, 2017, the Company declared a semi-annual dividend of $6.00 per share of Preferred Stock aggregating $99,000, which was paid on April 21, 2017.

As of June 30, 2017 and 2016, the Company had warrants to purchase 52,000 shares of Common Stock outstanding, none of which were used in the calculation of diluted (loss) earnings per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive. These warrants could be dilutive in the future if the average share price increases and is greater than the exercise price of these warrants.

As of June 30, 2017 and 2016, the Company had 16,512 shares of Preferred Stock outstanding, which were convertible into 330,240 shares of Common Stock, none of which were used in the calculation of diluted (loss) earnings per share because their conversion price was greater than the average stock price for the period and their inclusion would have been anti-dilutive. These shares of Preferred Stock could be dilutive in the future if the average share price increases and is greater than the purchase price of these shares of Preferred Stock.