Stockholders` Deficit and Loss Per Share

3 Months Ended

Mar. 31, 2020

Stockholders` Deficit and Loss Per Share [Line Items]

Earnings Per Share [Text Block]

Note 10 – Stockholders’ Deficit and Loss Per Share

The following table presents the calculation of loss per share for the three months ended March 31, 2020 and 2019:

	Three months ended March 31
In thousands, except per share data	2020		2019
Numerator:
Net loss, as reported	$	(1,043)	$	(523)
Change in dividends accumulated on preferred shares		-		(35)
Net loss attributable to common shares	$	(1,043)	$	(558)
Denominator:
Weighted average shares outstanding		13,696		4,975
Basic and diluted loss per share	$	(0.08)	$	(0.11)

Basic loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted loss per common share is computed by dividing net 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, 2020, the Company had no accumulated unpaid dividends related to the Series B Convertible Preferred Stock (“SBCPS”).  At March 31, 2019, the Company had accumulated unpaid dividends of $84,000 related to the SBCPS.

As of March 31, 2020, the Company had no shares of SBCPS outstanding.  As of March 31, 2019, the Company had 648 shares of SBCPS outstanding, which were convertible into 64,800 shares of Common Stock, none of which were used in the calculation of diluted loss per share because their conversion price was greater than the average share price for the period and their inclusion would have been anti-dilutive.  For each holder of the 15,864 shares 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, 2020 and 2019, the Company had warrants to purchase 250,000 shares of Common Stock outstanding which were included in the calculation of diluted loss 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, 2020 and 2019, the Company had other warrants to purchase 10,000 and 3,618,247 shares, respectively, of Common Stock outstanding, which were excluded from the calculation of diluted 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.  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.