(5)
Earnings Per Share. Basic earnings per share have been computed on the basis of the weighted-average number of shares of common
stock outstanding during the periods. Each share of Series B Preferred stock can be converted into 8,172 common
shares, and each share of Series C Convertible Preferred stock can be converted into one share of common stock at any time at the option
of the holder. The conversion feature is considered to be diluted earnings per share (“EPS”) in
accordance with ASC 260. The dilutive effect is calculated using the if-converted method. On October 1, 2025, the Company amended the
conversion rights of its Series B Convertible Preferred shares to allow conversion at the holder’s discretion. As a result of this
amendment, diluted earnings per share amounts for all periods presented have been restated to reflect the impact of the amendment to
the rights of the Series B Preferred shares, as described in Note 11. This amendment resulted in a change in the calculation of diluted
earnings per share, applied retrospectively to ensure comparability.
Schedule of Basic and Diluted Loss Per Share
| | |
Three Months
Ended | |
| | |
March
31, | |
| | |
2026 | | |
2025 | |
| (dollars
in thousands, except per share amounts) | |
Earnings | | |
Weighted
Average Shares | | |
Amount | | |
Earnings | | |
Weighted
Average Shares | | |
Amount | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Basic EPS: | |
$ | 4,663 | | |
| 11,974,503 | | |
$ | 0.39 | | |
$ | 3,870 | | |
| 11,704,610 | | |
$ | 0.33 | |
| Effect of conversion of
series B & C preferred shares | |
| | | |
| 11,617,705 | | |
| | | |
| | | |
| 11,639,530 | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted
EPS: | |
$ | 4,663 | | |
| 23,592,208 | | |
$ | 0.20 | | |
$ | 3,870 | | |
| 23,344,140 | | |
$ | 0.17 | |
|