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Earnings Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share

(4) Earnings Per Share

 

Included in the computation of diluted earnings per share for the three months ended March 31, 2024 was a total of 5,359,890 in potential common stock. This total was comprised of: 1) options to purchase approximately 250,000 shares of common stock outstanding, and 2) preferred stock convertible into a total of 5,109,890 shares of common stock outstanding as of March 31, 2024. Options to purchase approximately 1,164,000 shares of common stock that were outstanding as of March 31, 2023 were not included in the computation of earnings per share for the three months ended March 31, 2023, as inclusion of these shares would have resulted in an anti-dilutive effect and were thus omitted from disclosure. 

 

Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:

 

           
   Three months ended March 31, 
   2024   2023 
Numerator: (in Thousands)        
Net income (loss)  $893   $(1,159)
           
Denominator:          
Weighted average number of basic common shares outstanding   52,675,851    49,429,407 
Weighted average additional shares assuming conversion of in-the-money stock options to common shares   250,000    — 
Weighted average additional shares assuming conversion of issued convertible preferred stock   5,109,890    — 
Weighted average number of diluted common shares outstanding   58,035,741    49,429,407 
           
Basic earnings per common share:          
Net income (loss) per share – basic  $0.02   $(0.02)
Diluted earnings per common share:          
Net income (loss) per share – diluted  $0.02   $(0.02)

 

ASC 260-10-45-40 requires that convertible preferred stock be assumed to have been converted at the beginning of the period (or at time of issuance, if later), and the resulting common shares shall be included in the denominator. As such, the 15,000,000 potential common shares from the instruments were included in the weighted-average common shares outstanding computation for diluted earnings per share and was applied using the “if converted” method per ASC 260-10-45-40(a).