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EARNINGS (LOSS) PER SHARE
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE

NOTE 12. EARNINGS (LOSS) PER SHARE

 

Basic EPS applicable to common stockholders is computed by dividing earnings applicable to common stockholders by the weighted-average number of common shares outstanding.

 

If there is a loss from operations, diluted EPS is computed in the same manner as basic EPS is computed. Similarly, if the Company has net income but its preferred dividend adjustment made in computing income available to common stockholders results in a net loss available to common stockholders, diluted EPS would be computed in the same manner as basic EPS.

 

The following calculates basic and diluted EPS:

 

           
   Three Months Ended  
   March 31, 2022   March 31, 2021 
Net income (loss)  $

9,340,000

   $(613,926)
Deemed dividend   (6,930,335)   - 
Net income (loss), numerator, basic computation   2,409,665    (613,926)
Recognition and change in fair value of warrant liabilities   (13,992,664)   - 
Net income (loss), numerator, diluted computation  $

(11,582,999

)   $(613,926)
           
Weighted average shares - denominator basic computation   

980,569

    502,825 
Effect of Series B warrant liabilities   214,911    - 
Weighted average shares, as adjusted - denominator diluted computation   1,195,480    502,825 
Earnings (loss) per common share - basic  $2.46   $(1.22)
Earnings (loss) per common share - diluted  $(9.69)   $(1.22)

 

Additionally, the following are considered anti-dilutive securities excluded from weighted-average shares used to calculate diluted net loss per common share:

 

           
   For the Three Months Ended 
   March 31, 2022   March 31, 2021 
Shares subject to outstanding common stock options   10,928    10,928 
Shares subject to outstanding Series A warrants   113,000    138,000 
Shares subject to unvested stock awards   661    1,200 
Shares subject to conversion of Series B preferred stock   147,939    -