Stockholders' Deficit and (Loss) Income Per Share

9 Months Ended

Sep. 30, 2023

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

Equity [Text Block]

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

The following table presents the calculation of (loss) income per share for the three and nine months ended September 30, 2023 and 2022:

In thousands, except per share data	Three months ended September 30				Nine months ended September 30
	2023		2022		2023		2022
Numerator:
Net (loss) income, as reported	$	(854)	$	(466)	$	(2,587)	$	557
Denominator:
Weighted average shares outstanding –     basic and diluted		13,496		13,446		13,478		13,446
(Loss) earnings per share – basic and diluted	$	(0.06)	$	(0.03)	$	(0.19)	$	0.04

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.

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 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 September 30, 2023, the Company excluded the effects of the outstanding stock options to purchase 235,000 shares in the calculation of diluted loss per share since their inclusion would have been anti-dilutive.  As of September 30, 2023 and 2022, the Company had warrants to purchase 1.6 million shares 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.

A summary of the status of the Company’s stock options as of September 30, 2023 and the changes during the nine 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		45,000	$	0.40			$	0.19
Outstanding at September 30, 2023		235,000	$	0.40		2.5	$	0.19
Exercisable at the end of the period		235,000	$	0.40		2.5	$	0.19

Equity based compensation was $38,000 and $76,000 for the nine months ended September 30, 2023 and 2022, respectively.  There was no equity based compensation for the three months ended September 30, 2023.  Equity based compensation was $38,000 for the three months ended September 30, 2022.  There is no unrecognized equity based compensation cost related to unvested stock options as of September 30, 2023.