Note 10 – (Loss) Earnings Per Share

The following table presents the calculation of (loss) income per share for the three months ended March 31, 2019 and 2018:

	Three months ended March 31
In thousands, except per share data	2019		2018
Numerator:
Net (loss) income, as reported	$	(523)	$	60
Change in dividends accumulated on preferred shares		(35)		(49)
Net (loss) income attributable to common shares	$	(558)	$	11
Denominator:
Weighted average shares outstanding		4,975		2,162
Basic and diluted (loss) income per share	$	(0.11)	$	0.01

Basic (loss) income 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) income 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 March 31, 2019 and 2018, the Company had accumulated unpaid dividends of $84,000 and $91,000, respectively, related to the Series B Convertible Preferred Stock (“SBCPS”).

For each holder of SBCPS that converted their shares into Common Stock in March 2019, the Company declared a dividend of $4.60 per share of SBCPS on March 29, 2019, aggregating $73,000, which was distributed to these former holders of the SBCPS on April 2, 2019.

As of March 31, 2019, the Company had warrants to purchase 250,000 shares of Common Stock outstanding which were included in the calculation of diluted (loss) income per share because their exercise price was less than the average stock price for the period so their inclusion was dilutive. As of March 31, 2019 and 2018, the Company had other warrants to purchase 3,618,247 and 52,000 shares, respectively, of Common Stock outstanding, which were excluded from the calculation of diluted (loss) income per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive. Warrants to purchase 3,608,247 shares were exercised subsequent to March 31, 2019. The remaining warrants to purchase 10,000 shares 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, 2019 and 2018, the Company had 648 and 16,512 shares, respectively, of SBCPS outstanding, which were convertible into 64,800 and 330,240 shares of Common Stock, none of which were used in the calculation of diluted (loss) income 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 SBCPS could be dilutive in the future if the average share price increases and is greater than the purchase price of these shares of SBCPS.