Quarterly report pursuant to Section 13 or 15(d)

EQUITY AND EARNINGS PER SHARE (Tables)

v3.19.1
EQUITY AND EARNINGS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2019
Stockholders' Equity Note [Abstract]  
Schedule of outstanding options
The following is a summary of the changes in the Company’s outstanding options for the three months ended March 31, 2019:
 
Number of Options
 
Weighted Average Strike Price
 
Weighted Average Life Remaining (in years)
Balance at December 31, 2018
8,436,931

 
$
3.72

 
 
Balance at March 31, 2019
8,436,931

 
$
3.72

 
7.47
 
 
 
 
 
 
Exercisable at March 31, 2019
2,705,586

 
$
2.64

 
4.39


Schedule of outstanding options summary
As of March 31, 2019, the Company’s outstanding options were summarized as follows:
 
 
Number of Options
Held by the former Manager
 
2,705,253

Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A)
 
2,304,990

Issued to the independent directors
 
333

Issued to Drive Shack employees (B)
 
3,426,355

Total
 
8,436,931

Weighted average strike price
 
$
3.72


(A)
The Company and the former Manager agreed that options held by certain employees formerly employed by the Manager would not terminate or be forfeited as a result of the Termination and Cooperation Agreement, and the vesting of such options relate to the relevant holder’s employment with the Company and its affiliates following January 1, 2018. In both February 2017 and April 2018, the former Manager issued 1,152,495 options to certain employees formerly employed by the Manager as part of their compensation. The options fully vest and are exercisable one year prior to the option expiration date, beginning March 2020 through January 2024.
(B)
In November 2018, the Company issued options to certain employees as provided in their employment agreements. The options fully vest and are exercisable as follows: 3,351,355 options vest in equal annual installments on each of the first three anniversaries of the grant date; and 75,000 options fully vest on the third anniversary of the grant date.
Summary of changes in RSUs
The following is a summary of the changes in the Company’s RSUs for the three months ended March 31, 2019.

 
 
Number of RSUs
 
Weighted Average Grant Date Fair Value (per unit)
Balance at December 31, 2018
 
54,641

 
$
5.02

Balance at March 31, 2019
 
54,641

 
$
5.02

Schedule of amounts used in computing basic and diluted EPS
The following table shows the Company's basic and diluted earnings per share (“EPS”):
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Numerator for basic and diluted earnings per share:
 
 
 
 
Loss from continuing operations after preferred dividends and noncontrolling interests
 
$
(15,995
)
 
$
(17,690
)
Loss Applicable to Common Stockholders
 
$
(15,995
)
 
$
(17,690
)
 
 
 
 
 
Denominator:
 
 
 
 
Denominator for basic earnings per share - weighted average shares
 
67,027,104

 
66,977,104

Effect of dilutive securities
 
 
 
 
Options
 
—

 
—

RSUs
 
—

 
—

Denominator for diluted earnings per share - adjusted weighted average shares
 
67,027,104

 
66,977,104

 
 
 
 
 
Basic earnings per share:
 
 
 
 
Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
 
$
(0.24
)
 
$
(0.26
)
 
 
 
 
 
Loss Applicable to Common Stock, per share
 
$
(0.24
)
 
$
(0.26
)
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests
 
$
(0.24
)
 
$
(0.26
)
 
 
 
 
 
Loss Applicable to Common Stock, per share
 
$
(0.24
)
 
$
(0.26
)