(LOSS) EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

The Company reports a dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted EPS uses the if-converted method to compute for the potential dilution that would occur if holders of Class C OP Units exercise their right to exchange their Class C OP Units and the Company elects to exchange their Class C OP Units for shares of Class C Common Stock (see Note 12 for additional information).

The following table presents the computation of the Company's basic and diluted net (loss) income per share attributable to common stockholders for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator - Basic:
Net (loss) income	$	(1,047,736)	$	(6,905,242)	$	4,851,323	$	(6,854,210)
Less: net loss (income) attributable to noncontrolling interest in Operating Partnership (a)	274,646		1,368,896		(388,349)		1,600,254
Preferred stock dividends	(921,875)		(921,875)		(2,765,625)		(2,765,625)
Net (loss) income attributable to common stockholders	$	(1,694,965)	$	(6,458,221)	$	1,697,349	$	(8,019,581)

Numerator - Diluted:
Net (loss) income	$	(1,047,736)	$	(6,905,242)	$	4,851,323	$	(6,854,210)
Preferred stock dividends	(921,875)		(921,875)		(2,765,625)		(2,765,625)
Net (loss) income attributable to common stockholders and noncontrolling interests	$	(1,969,611)	$	(7,827,117)	$	2,085,698	$	(9,619,835)

Denominator:
Weighted average shares outstanding - basic	9,430,885		7,548,052		9,151,287		7,537,505
Class C OP Units (b)	1,528,145		1,599,898		2,093,793		1,504,059
Weighted average shares and units outstanding - diluted	10,959,030		9,147,950		11,245,080		9,041,564

(Loss) earnings per share attributable to common stockholders:
Basic	$	(0.18)	$	(0.86)	$	0.19	$	(1.06)
(Loss) earnings per share attributable to common stockholders and noncontrolling interests:
Diluted	$	(0.18)	$	(0.86)	$	0.19	$	(1.06)

(a) Each Class C Common Share and Class C OP Unit have the same participation in earnings (loss) and therefore there is no difference between basic and diluted earnings (loss) per share. Consequently, net loss (income) attributable to noncontrolling interest in Operating Partnership for the three month periods presented above equals the product of (i) the Operating Partnership weighted average units as a percentage of diluted weighted average shares and units outstanding and (ii) the net (loss) income attributable to common shareholders and noncontrolling interests for each period presented. This can result in a different net loss (income) attributable to noncontrolling interest in Operating Partnership than the amount presented on the statements of operations and equity for the three month periods, as those amounts are calculated for the year-to-date period less the prior quarter’s year-to-date net loss (income) attributable to noncontrolling interest in Operating Partnership.

(b) For each of the three and nine months ended September 30, 2023, the weighted average dilutive effect of 1,980,822 Class M OP Units, Class P OP Units, and Class R OP Units, discussed in Note 12, was excluded from the computation of diluted loss per share because their effect would be anti-dilutive since the units did not vest until the first quarter of 2024 and were not yet entitled to participate in earnings (losses).