Earnings/(loss) per share

12 Months Ended

Dec. 31, 2019

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,
	2017			2018			2019
Numerator
Net (loss)/income		(1,218,237	)		(12,276,520	)		2,093,124
Less: Undistributed earnings allocated to non-vested shares		—			—			(8,922	)

Net (loss)/income attributable to common shareholders, basic		(1,218,237	)		(12,276,520	)		2,084,202

Denominator
Weighted average number of shares outstanding, basic and diluted		39,809,364			39,860,563			39,800,434

(Loss)/earnings per share, basic and diluted		(0.03	)		(0.31	)		0.05

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

non-vested

share awards in calculating dilutive EPS for its common shares as of December 31, 201

, as they were anti-dilutive.