Stockholders' Deficit and Income (Loss) Per Share

3 Months Ended

Mar. 31, 2023

Stockholders' Deficit and Income (Loss) Per Share [Line Items]

Equity [Text Block]

Note 10 – Stockholders’ Deficit and Income (Loss) Per Share

The following table presents the calculation of income (loss) per share for the three months ended March 31, 2023 and 2022:

Three months ended March 31
In thousands, except per share data	2023		2022
Numerator:
Net (loss) income, as reported	$	(858)	$	493
Denominator:
Weighted average shares outstanding – basic		13,446		13,446
Weighted average shares outstanding – diluted		13,470		13,531
Basic and diluted (loss) earnings per share – basic and diluted	$	(0.06)	$	0.04

Basic earnings (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 earnings (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.

On March 28, 2022, the Company issued stock options to purchase 280,000 shares to executives and employees at an exercise price of $0.40 per share, which became vested on March 28, 2023.  The options were valued at the grant date using the Black-Scholes model with the following inputs:  expiration date March 28, 2026; risk-free rate of return 2.55%; and volatility 108%.

As of March 31, 2023, the Company excluded the effects of the outstanding stock options to purchase 280,000 shares in the calculation of diluted loss per share since their inclusion would have been anti-dilutive.  As of March 31, 2023 and 2022, the Company had other warrants to purchase 1.6 million shares of Common Stock outstanding, which were excluded from 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.

A summary of the status of the Company’s stock options as of March 31, 2023 and the changes during the three months then ended is presented below:

	Number of Options	Weighted Average  Exercise Price		Weighted average remaining contractual life (in years)	Average intrinsic  value
Outstanding at December 31, 2022	280,000	$	0.40	3.3	$	0.19
Granted	-		-
Expired	-		-
Outstanding at March 31, 2023	280,000	$	0.40	3.0	$	0.19
Exercisable at the end of the period	280,000	$	0.40	3.0	$	0.19

Equity based compensation was $38,000 for the three months ended March 31, 2023.  There was no equity based compensation for the three months ended March 31, 2022.  There is no more unrecognized equity based compensation cost related to unvested stock options as of March 31, 2023.