Earnings/(loss) per share

12 Months Ended

Dec. 31, 2023

13. 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,
	2021			2022		2023

Numerator
Net (loss)/income		(35,123,208	)		34,253,365		51,936,829
Less: Undistributed earnings allocated to non-vested shares		—			216,168		813,111

Net income/(loss) attributable to common shareholders, basic		(35,123,208	)		34,037,197		51,123,689

Denominator
Weighted average number of shares outstanding, basic		37,858,437			37,961,560		37,166,449

Weighted average number of shares outstanding, diluted		37,858,437			37,961,673		37,236,951

(Loss)/Earnings per share, basic		(0.93	)		0.90		1.38

(Loss)/Earnings per share, diluted		(0.93	)		0.90		1.37

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, 2021.

Non-vested,

participating restricted common stock was included in the basic earnings per share calculations for the years ended December 31, 2022 and 2023.

The Company excluded the dilutive effect of 343,744 non-vested share awards and the 250,000 unexercised options to acquire common shares in calculating dilutive EPS for its common shares as of December 31, 2021, as they were anti-dilutive.

The Company excluded the dilutive effect of

171,872

non-vested

share awards and the

250,000

unexercised options to acquire common shares in calculating dilutive EPS for its common shares as of December 31, 2022, as they were anti-dilutive.

As of December 31, 2023, diluted earnings per share reflects the potential dilution from the incremental shares of the

549,000

unexercised options to acquire common shares and the

1,117,000

non-vested share awards that had a dilutive effect.