Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Earnings (Loss) Per Share

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Note 6 - Earnings (Loss) Per Share
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Earnings Per Share [Text Block]
6
.
Earnings (Loss) Per Share
 
Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares and, except for periods with a loss from operations, participating securities outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that
may
be issued by the Company include convertible debt, convertible preferred stock, options and warrants.
 
The following table sets forth the reconciliation of the
weighted average number of common shares outstanding used to compute basic and diluted earnings (loss) per share for the
three
-month and
nine
-month periods ended
September 30, 2017
and
2016:
 
   
Three Months Ended
September
30,
   
Nine
Months Ended
September
30,
 
   
2017
   
2016
   
2017
   
2016
 
Weighted average shares outstanding, basic
   
162,006,646
     
155,481,278
     
161,437,276
     
155,390,911
 
Dilutive shares related to warrants
   
     
     
4,277,197
     
 
Unvested restricted stock
   
     
     
200,000
     
 
Weighted average shares outstanding, diluted
   
162,006,646
     
155,481,278
     
165,914,473
     
155,390,911
 
 
Diluted earnings (loss) per common share for the
nine
-month periods ended
September 30, 2017
and
2016
excludes the effects of
15.1
million and
14.5
million common share equivalents, respectively, since such inclusion would be anti-dilutive. The excluded shares consist of common shares issuable upon exercise of outstanding stock options and warrants, and upon the conversion of convertible debt and convertible preferred stock.
 
The Company
’s unvested stock awards contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”). Therefore, the unvested stock awards are required to be included in the number of shares outstanding for both basic and diluted earnings per share calculations. However, due to our loss from continuing operations,
200,000
and
257,000
shares of unvested restricted stock for the
nine
-month periods ended
September 30, 2017
and
2016,
respectively, were excluded in determining basic and diluted loss per share from continuing operations because such inclusion would be anti-dilutive.