Earnings Per Share

12 Months Ended

Dec. 31, 2023

In periods in which the Company has net income, the Company is required to calculate earnings per share (“EPS”) using the two-class method. The two-class method is required because the Company’s Series A Preferred Stock is considered a participating security with objectively determinable and non-discretionary dividend participation rights. Series A Preferred stockholders have the right to participate in dividends above their five percent dividend rate should the Company declare dividends on its common stock at a dividend rate higher than the five percent (on an as-converted basis). Under the two-class method, undistributed and distributed earnings are allocated on a pro-rata basis to the common and the preferred stockholders. The weighted-average number of common and preferred stock outstanding during the period is then used to calculate EPS for each class of shares.

In December 2022, we repurchased all 9,926 shares of the Company's Series A Preferred Stock then outstanding.

In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two-class method is not used, because the calculation would be anti-dilutive.

Reconciliations of basic and diluted EPS are as follows:


	Year Ended December 31,
In thousands, except per share amounts	2023		2022
Numerator:
Net (loss) income	$	(1,570)	$	36,776
Less: Loss from redemption of Preferred stock	—		1,380
Numerator for basic and diluted EPS: income attributable to common stockholders	(1,570)		35,396

Denominator:
Basic EPS denominator: weighted-average common shares outstanding	7,310		7,101
Diluted EPS denominator	7,310		7,457

Basic (loss) income per common share	$	(0.21)	$	4.98
Diluted (loss) income per common share	$	(0.21)	$	4.75

For the years ended December 31, 2023 and 2022, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 99,791 and 13,366 shares of anti-dilutive market price options; 37,653 and 24,918 anti-dilutive unvested shares.