Earnings Per Share

9 Months Ended

Sep. 30, 2024

Note 9 – Earnings Per Share

Basic earnings per share ("EPS") amounts are computed by dividing net income (the numerator) by the weighted average number of common shares outstanding (the denominator). Diluted EPS amounts assume the conversion, exercise, or issuance of all potential common stock instruments, unless the effect would be to reduce the loss or increase earnings per common share. Potential dilutive common stock instruments include exercisable stock options, performance-based restricted stock awards (“PSAs”), preferred stock, and warrants. The Company calculates diluted EPS for its warrants and stock options using the treasury stock method, for its preferred stock using the if-converted method, and for its PSAs using the two-class method.

The following table shows the calculation of basic and diluted EPS and the weighted average number of shares outstanding used in computing EPS and the effect on the weighted average number of shares outstanding of dilutive potential common stock for the periods stated. For the 2023 periods presented and for the nine months ended September 30, 2024, all outstanding stock options, PSAs, preferred stock, and warrants were considered anti-dilutive and excluded from the computation of diluted EPS, due to the net loss in the respective periods. For the three months ended September 30, 2024, stock options of 29,741 shares and PSAs of 171,752 shares of the Company's common stock were not included in the computation of diluted earnings per share because their effects would have been anti-dilutive.


	For the three months ended					For the nine months ended
(Dollars in thousands, except per share data)	September 30, 2024		September 30, 2023			September 30, 2024			September 30, 2023
Net income (loss)	$	946	$	(41,371	)	$	(13,382	)	$	(46,014	)

Weighted average common shares outstanding, basic		73,366,140		19,014,883			39,132,557			18,907,921
Effect of dilutive securities (1)		13,720,237		—			—			—
Weighted average common shares outstanding, dilutive		87,086,377		19,014,883			39,132,557			18,907,921

Basic and diluted earnings (loss) per share	$	0.01	$	(2.18	)	$	(0.34	)	$	(2.43	)

(1) Components of dilutive securities
PSAs		1,805		—			—			—
Preferred stock		10,928,000		—			—			—
Warrants		2,790,432		—			—			—
Total dilutive weighted average securities		13,720,237		—			—			—