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Earnings/(loss) per share
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings/(loss) per share
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,
  
    
2018
     
2019
     
2020
  
Numerator
                           
Net (loss)/income
      (12,276,520 )       2,093,124        11,984,485  
Less: Undistributed earnings allocated to
non-vested
shares
      —          (8,922 )       —    
    
 
 
     
 
 
     
 
 
  
Net (loss)/income attributable to common shareholders, basic
      (12,276,520 )       2,084,202        11,984,485  
    
 
 
     
 
 
     
 
 
  
Denominator
                           
    
 
 
     
 
 
     
 
 
  
Weighted average number of shares outstanding, basic and diluted
      39,860,563        39,800,434        38,357,893  
    
 
 
     
 
 
     
 
 
  
(Loss)/earnings per share, basic and diluted
      (0.31 )       0.05        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 for the year ended December 31, 2018.
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, 2018, as they were anti-dilutive
.