Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) per Common Share

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Earnings (Loss) per Common Share
9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings (Loss) per Common Share Earnings (Loss) per Common ShareBasic income or loss per common share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted income or loss per common share is computed by dividing net income or loss by the weighted average number of common shares outstanding, plus the issuance of potentially dilutive common shares that could result from the exercise of outstanding stock options and warrants, vesting of restricted stock and conversion of convertible notes. No potentially dilutive common shares are included in the computation of any diluted per share amount when a loss is reported, which was the case for the three and nine months ended September 30, 2023 and
2022. The Company applied the treasury stock method to account for the dilutive impact of its options, warrants and restricted stock units and the if-converted method for its Convertible Note.

The following table reconciles the earnings (loss) and number of common shares used to calculate basic and diluted earnings per common share attributable to the Company’s shareholders:

Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Basic earnings per common share:
Net income (loss) - basic $ (50,672) $ (1,231) $ (95,555) $ 23,751 
Weighted shares outstanding - basic 6,460,511  3,787,269  5,691,036  3,771,472 
Basic earnings (loss) per common share $ (7.84) $ (0.33) $ (16.79) $ 6.30 
Diluted earnings per common share:
Net income (loss) - basic $ (50,672) $ (1,231) $ (95,555) $ 23,751 
Add: Convertible Note interest expense, net of tax —  —  —  11,830 
Reverse: Change in fair value of derivative liability —  —  —  (16,370)
Net income (loss) - diluted $ (50,672) $ (1,231) $ (95,555) $ 19,211 
Weighted shares outstanding - basic 6,460,511  3,787,269  5,691,036  3,771,472 
Add: Dilutive effects of stock options and restricted stock units —  —  —  115,236 
Add: Dilutive effects of if-converted Convertible Note —  —  —  382,012 
Weighted shares outstanding - diluted 6,460,511  3,787,269  5,691,036  4,268,720 
Diluted earnings (loss) per common share $ (7.84) $ (0.33) $ (16.79) $ 4.50 

All potentially dilutive common shares in the following table were excluded from the computation of diluted loss per share for the three and nine months ended September 30, 2023 and for the three months ended September 30, 2022 because including them would have had an anti-dilutive effect due to losses reported during those periods.

Outstanding as of September 30,
2023 2022
Convertible notes payable 260,273 382,012
Outstanding warrants 1,218,286 1,218,286
Stock options 123,307 164,902
Restricted stock units 344,492 158,635
Common and preferred Series C warrants
Total anti-dilutive stock 1,946,358 1,923,835