Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.20.1
Earnings Per Share
3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share
9. EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted earnings per share is calculated using the treasury stock method, on the basis of the weighted average number of shares outstanding plus the dilutive effect, if any, of stock options, unvested restricted stock and warrants. The if converted method is used for determining the impact of the Convertible Note.
The following table shows the computation of basic and diluted earnings per share:
Three Months Ended March 31,
2020 2019
Net income (loss) $ 4,756,691    $ (6,264,172)  
Net income (loss) attributable to common stockholders $ 4,756,691    $ (6,264,172)  
Basic weighted average shares outstanding 68,465,759    55,260,519   
Dilutive effect of options and warrants 15,303,061    —   
Diluted weighted average shares outstanding 83,768,820    55,260,519   
Anti-dilutive options and warrants excluded from diluted average shares outstanding 5,066,931    22,752,782   

Excluded from the table above are the warrant shares related to the Convertible Note, which represent 13,278,689 warrants calculated using the if converted method. The warrants are issuable at the option of the Company following the full or partial redemption of the Convertible Note. In the event the Convertible Note is redeemed, the percentage of the warrants that will be issued upon such redemption will be equal to the percentage of the principal amount at such time. Therefore, as the principal balance of the Convertible Note decreases, the number of potential warrants to be issued decreases proportionally.
Also excluded from the table above are the shares on the conversion of the Convertible Note, which represent 14,137,319 shares of common stock calculated using the if converted method. The Convertible Note is convertible into shares of the Company's common stock.