• Filing Date: 2020-08-04
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.2
Earnings (Loss) Per Sare (EPS)
6 Months Ended
Jun. 30, 2020
Earnings (Loss) Per Sare (EPS) [Abstract]  
Earnings (Loss) Per Sare (EPS) 11. EARNINGS (LOSS) PER SHARE (EPS)

The Company follows ASC 260, Earnings Per Share (ASC 260), which requires the reporting of both basic and diluted earnings per share. Because the Company’s preferred stockholders participate in dividends equally with common stockholders (if the Company were to declare and pay dividends), the Company uses the two-class method to calculate EPS. However, the Company’s preferred stockholders are not contractually obligated to share in losses.

Basic EPS is computed by dividing net income (loss) available to stockholders by the weighted average number of shares outstanding for the period. Diluted EPS is calculated in accordance with ASC 260 by adjusting weighted average shares outstanding for the dilutive effect of common stock options, restricted stock units and warrants. In periods where a net loss is recorded, no effect is given to potentially dilutive securities, since the effect would be anti-dilutive.

Common stock equivalent securities that would potentially dilute basic EPS in the future, but were not included in the computation of diluted EPS because they were either classified as participating or would have been anti-dilutive, were as follows:

Three and Six Months Ended

June 30,

2020

2019

Series A convertible preferred stock

601,504

601,504

Series C convertible preferred stock

676,667

676,667

Common stock warrants

119,712

119,712

Stock options

1,043,297

912,430

Restricted stock & RSUs outstanding at period end

30,086

36,763

Total

2,471,266

2,347,076