Earnings per share

3 Months Ended

Mar. 31, 2025

The Company is required to present basic earnings per share and diluted earnings per share in its Consolidated Statements of Operations. Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share reflects additional shares of common stock that would have been outstanding if potentially dilutive shares of common stock had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential shares of common stock that may be issued by the Company relate to outstanding unvested RSAs granted to directors and employees. The dilutive effect resulting from these potential shares is determined using the treasury stock method. The Company is also required to provide a reconciliation of the numerator and denominator used in the computation of both basic and diluted earnings per share.

On March 20, 2025, in connection with the $57.75 million Private Placement, the Company issued 60,400,106 shares of Common Stock and 90,832 shares of Series A Preferred Stock, which are convertible into 7,266,560 shares of Common Stock. In addition, as part of the Private Placement, on March 20, 2025, the Company’s amendments to (i) 6.25% Fixed to Floating Subordinated Note due June 30, 2028 (the “Subordinated Note”), and (ii) 8.5% Fixed Rate Senior Notes Due 2026 (the “Senior Notes” and together with the Subordinated Note, the “Notes”) became effective and noteholders converted approximately $7.0 million of the aggregate principal amount of the Notes into 9,333,334 shares of Common Stock. The amendments to Subordinated Note and Senior Notes allow for interest to be paid-in-kind, increasing the principal amount, while the Senior Notes amendment also extends the maturity date to April 15, 2028 and adjusts the interest rate in 2026. These transactions affect the weighted average number of shares outstanding, as the additional shares of Common Stock were only outstanding from March 20, 2025 to March 31, 2025.

The following table summarizes the computation of basic and diluted loss per share for the three months ended March 31, 2025 and 2024, including the effects of the Private Placement.


(Net loss in thousands)	Three Months Ended March 31,
	2025			2024
Basis loss per share:
Net loss attributable to Common shareholders	$	(2,777)		$	(299)
Divided by:
Weighted average shares outstanding	13,289,644			3,976,073

Basic loss per share of common stock	$	(0.21)		$	(0.08)

Diluted loss per share:
Net loss attributable to Common shareholders	$	(2,777)		$	(299)

Weighted average shares outstanding	13,289,644			3,976,073

Effect of potentially dilutive restricted shares of common stock	—		(1)	—		(2)

Divided by:
Weighted average diluted shares outstanding	13,289,644			3,976,073

Diluted loss per share of common stock	$	(0.21)		$	(0.08)


(1)			The weighted average diluted shares outstanding does not include 112,771 anti-dilutive restricted shares of common stock for the three months ended March 31, 2025.
(2)			The weighted average diluted shares outstanding does not include 22,269 anti-dilutive restricted shares of common stock for the three months ended March 31, 2024.