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Earnings per Share
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings per Share

3. Earnings per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to the Company available to common stockholders by the weighted average number of common shares outstanding for the three months ended March 31, 2021 and 2020. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were either exercised or converted into common stock or resulted in the issuance of common stock that would share in the earnings of the Company. The Company uses the two-class method to determine earnings per share.

 For calculating basic earnings per share, for the three months ended March 31, 2020, the weighted average number of shares outstanding exclude 134,933 non-vested restricted shares and 49,147 unexercised substantive options. The computation of diluted earnings per share for the three months ended March 31, 2020 did not assume the effect of restricted shares or substantive options because the effects were antidilutive.

For calculating basic earnings per share, for the three months ended March 31, 2021, the weighted average number of shares outstanding exclude 691,038 non-vested restricted shares and 49,177 substantive options. The computation of diluted earnings per share for the three months ended March 31, 2021 did not assume the effect of restricted shares or substantive options because the effects were antidilutive.

The following table represents a reconciliation of the net income and weighted average shares outstanding for the calculation of basic and diluted earnings per share for the three months ended March 31, 2021 and 2020 (in thousands except per share data):

 

 

 

For the Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

Numerator

 

 

 

 

 

 

 

 

Net income

 

$

981

 

 

$

426

 

Earnings allocated to non-vested shares

 

 

124

 

 

 

14

 

Subtotal

 

$

857

 

 

$

412

 

Denominator

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

5,083,470

 

 

 

5,584,321

 

Effect of dilutive nominal options

 

 

-

 

 

 

4,366

 

Effect of dilutive contingently earned shares

 

 

13,127

 

 

 

34,013

 

Dilutive average shares outstanding

 

 

5,096,597

 

 

 

5,622,700

 

Basic earnings per share

 

$

0.17

 

 

$

0.07

 

Dilutive earnings per share

 

$

0.17

 

 

$

0.07