Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Note 13 – Earnings (Loss) Per Share

The weighted-average common shares outstanding are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020

Weighted average common shares outstanding		15,139,572		12,426,872		14,903,468		12,399,687
Issuance of warrants		5,345,866		-		5,322,203
Weighted average common shares outstanding - basic		20,485,438		12,426,872		20,225,671		12,399,687
Issuance of contingent warrants		1,626,386		-		-		-
Dilutive effect of employee stock options and nonvested share awards		-		-		-		-
Weighted average common shares outstanding - diluted		22,111,824		12,426,872		20,225,671		12,399,687

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company allocates earnings between both classes; however, in periods of undistributed losses, they are only allocated to common shares as the unvested restricted stockholders do not contractually participate in losses of the Company. The Company computes basic earnings per share by dividing net income allocated to common shareholders by the weighted average number of shares outstanding during the period. Warrants issued in connection with the Company's long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the period. Weighted average diluted common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and the assumed vesting of nonvested share awards. For the three months ended September 30, 2021 and 2020, 1,237,172 and 1,104,263 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive. For the nine months ended September 30, 2021and 2020, 1,354,525 and 1,083,881 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.