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COMMON STOCK AND EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

COMMON STOCK AND EARNINGS PER SHARE

COMMON STOCK AND EARNINGS PER SHARE

NOTE 13. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income (loss) attributable to common stockholders during the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods. Effective as of January 1, 2022, diluted earnings per common share also reflects the 2025 Notes on an if-converted basis.

The following is a reconciliation of basic and diluted earnings per common share for each of the periods presented (in thousands, except share and per share data):


		Three Months Ended						Six Months Ended
		June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Basic and Diluted Earnings:
Net Income (Loss) Attributable to Common Stockholders, Used in Basic EPS		$	605		$	22		$	(6,583)		$	(971)
Add Back: Effect of Dilutive Interest Related to 2025 Notes ⁽¹⁾			—			—			—			—
Net Income (Loss) Attributable to Common Stockholders, Used in Diluted EPS			605			22			(6,583)			(971)

Basic and Diluted Shares:
Weighted Average Shares Outstanding, Basic			22,482,957			18,012,534			22,593,280			17,870,394
Common Shares Applicable to Dilutive Effect of 2025 Notes ⁽²⁾			—			—			—			—
Weighted Average Shares Outstanding, Diluted			22,482,957			18,012,534			22,593,280			17,870,394

Per Share Information:
Net Income (Loss) Attributable to Common Stockholders
Basic and Diluted		$	0.03		$	0.00		$	(0.29)		$	(0.05)

⁽¹⁾

As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in net income or loss that would result from the assumed conversion of the 2025 Convertible Senior Notes to derive FFO (as defined herein) effective January 1, 2022 due to the implementation of ASU 2020-06 which requires presentation on an if-converted basis. For the three and six months ended June 30, 2023 and 2022, a total of $0.5 million and $1.1 million of interest was not included, respectively, as the impact of the 2025 Notes, if-converted, would be antidilutive to net income (loss) attributable to common stockholders for the respective periods.

⁽²⁾

A total of 3.3 million shares, representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were not included in the computation of diluted net income (loss) attributable to common stockholders for each of the three and six month periods ended June 30, 2023, because they were antidilutive to net income (loss) attributable to common stockholders for the respective periods. A total of 3.1 million shares, representing the dilutive impact of the 2025 Notes, upon adoption of ASU 2020-06 effective January 1, 2022, were not included in the computation of diluted net income (loss) attributable to common stockholders for each of the three and six month periods ended June 30, 2022, because they were antidilutive to net income (loss) attributable to common stockholders for the respective periods.

There were no potentially dilutive securities for the three months ended June 30, 2023 or 2022 related to the Company’s stock options and restricted stock. The effect of 33,582 and 13,332 potentially dilutive restricted stock units were not included for the six months ended June 30, 2023 and 2022, respectively, as the effect would be anti-dilutive.

Effective January 1, 2022, the Company adopted ASU 2020-06 whereby diluted EPS includes the dilutive impact, if any, of the 2025 Notes (hereinafter defined) using the if-converted method, irrespective of intended cash settlement. The Company intends to settle its 3.875% Convertible Senior Notes due 2025 (the “2025 Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. The Company elected, upon adoption, to utilize the modified retrospective approach, negating the required restatement of EPS for periods prior to adoption. The effect of 3.3 million and 3.1 million potentially dilutive shares issuable on the conversion of the 2025 Notes, if-converted, were not included for the three and six months ended June 30, 2023 and 2022, respectively, as the effect would be anti-dilutive.