Earnings Per Share

12 Months Ended

Dec. 31, 2021

Note 18 – Earnings Per Share

The weighted average common shares outstanding are as follows:


	Year Ended December 31,
	2021		2020

Weighted average common shares outstanding		15,023,853		12,881,403
Issuance of warrants		5,742,545		551,025
Weighted average common shares outstanding - basic		20,766,398		13,432,428
Weighted average common shares outstanding - diluted		20,766,398		13,432,428

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 year. 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 year. 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 years ended December 31, 2021 and 2020, 1,321,396 and 1,078,409 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.