Earnings Per Share

3 Months Ended

Mar. 31, 2023

Note 12 – Earnings Per Share

The weighted-average common shares outstanding are as follows:


	Three Months Ended March 31,
	2023		2022

Weighted average common shares outstanding		16,792,292		15,678,143
Issuance of Warrants		9,753,171		7,540,504
Weighted average common shares outstanding - basic		26,545,463		23,218,647
Weighted average common shares outstanding - diluted		26,545,463		23,218,647

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 March 31, 2023 and 2022, 2,086,898 and 1,694,483 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.