Earnings Per Share

9 Months Ended

Sep. 30, 2018

12.

Earnings Per Share


	Pro forma for the three months ended September 30,						Pro forma for the nine months ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Numerator:
Net loss - numerator for earnings per common share	$	(1,441	)	$	(95	)	$	(3,435	)	$	(1,102	)

Denominator:
Weighted average basic common shares outstanding		3,530,150			3,530,150			3,530,150			3,530,150
Effect of dilutive securities:
Restricted stock and restricted stock units		140,000			140,000			140,000			140,000

Denominator for earnings per diluted common share		3,670,150			3,670,150			3,670,150			3,670,150

Basic loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)
Diluted loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)

The Pro Forma amounts disclosed above include 140,000 shares that were granted as restricted stock awards to the Company’s executive officers at the closing of the offerings associated with the Company’s IPO. No effect has been given to any issuances of additional shares in connection with the grant of options or awards of stock under the stock-based incentive plan adopted by the Company. Under the stock-based incentive plan, the Company may issue 480,000 shares of its common stock. Of this, 140,000 shares were granted as restricted stock awards and 215,000 shares were used to award stock options under the stock-based incentive plan. The issuance of authorized but unissued shares of common stock upon the exercise of stock options or for purposes of making restricted stock awards under the stock-based incentive plan instead of open market purchases would dilute the voting interests of existing shareholders by approximately 12%.

Federal Life Group, Inc. 10-Q/A