Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

12. Earnings/(loss) per share

v3.19.1
12. Earnings/(loss) per share
12 Months Ended
Dec. 31, 2018
Earningsloss Per Share  
Earnings/(Loss) Per Share

Note 12 — Earnings/(loss) per share

 

Basic and diluted earnings/(loss) per share is computed by dividing profit/(loss) for the year by the weighted-average number of ordinary shares outstanding during the period.

 

Potentially dilutive securities include:

 

  Year ended
December 31,
2018
  Year ended
December 31,
2017
  Year ended
December 31,
2016
 
             
Warrants to purchase common stock   6,733,292     6,733,292     6,733,292  
Convertible promissory notes issued to underwriters and other related parties subject to possible conversion   99,243     99,243     99,243  
Convertible promissory notes issued to shareholder subject to possible conversion   6,669,201     2,833,344     1,744,603  
Options to purchase common stock   473,195     473,944     374,650  
Total potential dilutive securities   13,974,931     10,139,823     8,951,788  

    

The exercise price of the Company’s warrants to purchase common stock is $5.00, expiring on March 30, 2020. The warrants may be called for redemption by the Company only if the last sale price of its ordinary shares on the stock exchange equals or exceeds $15.00 per share for any 20 trading days within a 30 trading day period. During 2016, the Company recognized the forfeiture of 507,762 shares underlying warrants pursuant to the founders’ units issued at the Company’s IPO in 2011 (see note 17 — Shareholders’ Equity).

 

For the year ended December 31, 2018, 2017 and 2016, the warrants, and the convertible promissory notes subject to possible conversion are excluded due to their anti-dilutive effect as the strike prices are either greater than or the same as the stock price. However, for the year ended December 31, 2018, certain options to purchase common stocks vested by one director and one officer with strike price less than the stock price are included in the computation of fully diluted earnings/(loss) per share due to their dilutive effect. For the years ended December 31, 2017 and 2016, options to purchase common stock are excluded from the computation of diluted earnings/(loss) per share as their effect is anti-dilutive.

 

The following reflects the basic and diluted earnings/(loss) per share for the year ended December 31:

 

Basic earnings/(loss) per share   2018     2017     2016*  
                   
From continuing operations   $ 0.53     $ (1.50 )   $ (0.17 )
From discontinued operations           (0.39 )     (0.12 )
Total basic earnings/(loss) per share   $ 0.53     $ (1.89 )   $ (0.29 )

  

Diluted earnings/(loss) per share   2018     2017     2016*  
                   
From continuing operations   $ 0.51     $ (1.50 )   $ (0.17 )
From discontinued operations     –         (0.39 )     (0.12 )
Total diluted earnings/(loss) per share   $ 0.51     $ (1.89 )   $ (0.29 )

 

The earnings/(loss) and weighted average number of ordinary shares used in the calculation of basic earnings/(loss) per share for the year ended December 31 are as follows:

 

Basic earnings/(loss) per share   2018     2017     2016*  
Earnings/(loss) from continuing operations used in the calculation of basic earnings/(loss) per share   $ 1,016,941     $ (2,933,067 )   $ (339,697 )
Earnings/(loss) from discontinued operations used in the calculation of basic earnings/(loss) per share from discontinued operations           (363,934 )     (225,447 )
Earnings/(loss) on sale of subsidiary           (135,200 )      
Earnings/(loss) on foreign currency exchange on discontinued operations           (254,935 )      
Earnings/(loss) used in the calculation of basic earnings/(loss) per share   $ 1,016,941     $ (3,687,136 )   $ (565,144 )
Weighted average number of ordinary shares for basic earnings/(loss) per share     1,903,723       1,949,061       1,954,651  

 

The loss and weighted average number of ordinary shares used in the calculation of diluted earnings/(loss) per share for the year ended December 31 are as follows:

 

Diluted earnings/(loss) per share   2018     2017     2016*  
Earnings/(loss) from continuing operations used in the calculation of diluted earnings/(loss) per share   $ 1,016,941     $ (2,933,067 )   $ (339,697 )
Earnings/(loss) used in the calculation of diluted earnings/(loss) per share     1,016,941       (2,933,067 )     (339,697 )
Earnings/(loss) from discontinued operations used in the calculation of basic earnings/(loss) per share from discontinued operations           (363,934 )     (225,447 )
Earnings/(loss) on sale of subsidiary           (135,200 )      
Earnings/(loss) on foreign currency exchange on discontinued operations           (254,935 )      
Earnings/(loss) used in the calculation of diluted earnings/(loss) per share   $ 1,016,941     $ (3,687,136 )   $ (565,144 )
Weighted average number of ordinary shares used in the calculation of basic earnings/(loss) per share     1,903,723       1,949,061       1,954,651  
Weighted average number of ordinary shares used in the calculation of diluted earnings/(loss) per share     1,997,928       1,949,061       1,954,651  

 

 

* Restated for discontinued operations (see note 9 — Discontinued Operations)