15.

Earnings/(loss) per share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share give effect to all potentially dilutive securities. All of the Company’s shares (including non-vested restricted stock issued under the Plan) participate equally in dividend distributions and in undistributed earnings.

The Company applies the two-class method of computing earnings per share (EPS) as the unvested share-based payment awards that contain rights to receive non forfeitable dividends are participating securities. Dividends declared during the period for non-vested restricted stock as well as undistributed earnings allocated to non-vested stock are deducted from net income for the purpose of the computation of basic earnings per share in accordance with the two-class method. The denominator of the basic earnings per common share excludes any non-vested shares as such they are not considered outstanding until the time-based vesting restriction has elapsed.

For purposes of calculating diluted earnings per share, dividends declared during the period for non-vested restricted stock and undistributed earnings allocated to non-vested stock are not deducted from net income as reported since such calculation assumes non-vested restricted stock is fully vested from the grant date.

The Company calculates basic and diluted earnings per share as follows:


	Year Ended December 31,
	2016			2017			2018
Numerator
Net loss		(7,798,300	)		(1,218,237	)		(12,276,520	)
Less: Undistributed earnings allocated to non-vested shares		—			—			—

Net loss attributable to common shareholders, basic		(7,798,300	)		(1,218,237	)		(12,276,520	)

Denominator
Weighted average number of shares outstanding, basic and diluted		39,824,038			39,809,364			39,860,563

Loss per share, basic and diluted		(0.20	)		(0.03	)		(0.31	)

Non-vested, participating restricted common stock does not have a contractual obligation to share in the losses and was therefore, excluded from the basic loss per share calculations.

The Company excluded the dilutive effect of 264,621 (2017: nil, 2016:57,678) non-vested share awards in calculating dilutive EPS for its common shares as of December 31, 2018, as they were anti-dilutive.