Note 9 – Earnings (Loss) Per Share

The following table presents the calculation of income (loss) per share for the three months ended March 31, 2018 and 2017:

	Three months ended March 31
In thousands, except per share data	2018		2017
Numerator:
Net income (loss), as reported	$	60	$	(1,255)
Change in dividends accumulated on preferred shares		(49)		(50)
Net income (loss) attributable to common shares	$	11	$	(1,305)
Denominator:
Weighted average shares outstanding		2,162		1,711
Basic and diluted income (loss) per share	$	0.01	$	(0.76)

Basic income (loss) per common share is computed by dividing net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted income (loss) per common share is computed by dividing net income (loss) 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 March 31, 2018 and 2017, the Company had accumulated unpaid dividends of $91,000 and $93,000, respectively, related to the Series B Convertible Preferred Stock (“Preferred Stock”).

On April 26, 2018, the Company declared a semi-annual dividend of 7.6923 shares of Common Stock per share of Preferred Stock aggregating 127,013 shares of Common Stock, which was distributed to the holders of the Preferred Stock on May 4, 2018.

As of March 31, 2018 and 2017, the Company had warrants to purchase 52,000 shares of Common Stock outstanding, none of which were used in the calculation of diluted income (loss) 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 March 31, 2018 and 2017, 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 income (loss) 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.