Gladstone Commercial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Loss Per Share of Common Stock

Loss Per Share of Common Stock

9 Months Ended

Sep. 30, 2023

Loss Per Share of Common StockThe following tables set forth the computation of basic and diluted loss per share of common stock for the three and nine months ended September 30, 2023 and 2022. The operating partnership units in the Operating Partnership (“OP Units”) held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”) (which may be redeemed for shares of common stock) have been excluded from the diluted loss per share calculations, as there would be no effect on the amounts since the Non-controlling OP Unitholders’ share of loss would also be added back to net loss. Net loss figures are presented net of such non-controlling interests in the loss per share calculation.

We computed basic loss per share for the three and nine months ended September 30, 2023 and 2022 using the weighted average number of shares outstanding during the respective periods. Diluted loss per share for the three and nine months ended September 30, 2023 and 2022 reflects additional shares of common stock related to our convertible senior common stock (the “Senior Common Stock”), if the effect of conversion would be dilutive, that would have been outstanding if such dilutive potential shares of common stock had been issued, as well as an adjustment to net loss attributable to common stockholders as applicable to common stockholders that would result from their assumed issuance (dollars in thousands, except per share amounts).


	For the three months ended September 30,				For the nine months ended September 30,
	2023		2022		2023		2022
Calculation of basic loss per share of common stock:
Net loss attributable to common stockholders	$	(1,419)	$	(310)	$	(9,063)	$	(1,385)
Denominator for basic weighted average shares of common stock (1)	39,917,995		39,504,734		39,939,660		38,723,581
Basic loss per share of common stock	$	(0.04)	$	(0.01)	$	(0.23)	$	(0.04)
Calculation of diluted loss per share of common stock:
Net loss attributable to common stockholders	$	(1,419)	$	(310)	$	(9,063)	$	(1,385)

Net loss attributable to common stockholders plus assumed conversions (2)	$	(1,419)	$	(310)	$	(9,063)	$	(1,385)
Denominator for basic weighted average shares of common stock (1)	39,917,995		39,504,734		39,939,660		38,723,581
Effect of convertible Senior Common Stock (2)	—		—		—		—
Denominator for diluted weighted average shares of common stock (2)	39,917,995		39,504,734		39,939,660		38,723,581
Diluted loss per share of common stock	$	(0.04)	$	(0.01)	$	(0.23)	$	(0.04)

(1)The weighted average number of OP Units held by Non-controlling OP Unitholders was 391,468 and 391,468 for the three and nine months ended September 30, 2023, respectively, and 273,072 and 262,412 for the three and nine months ended September 30, 2022, respectively.

(2)We excluded convertible shares of Senior Common Stock of 345,132 and 363,246 from the calculation of diluted earnings per share for the three and nine months ended September 30, 2023 and 2022, respectively, because they were anti-dilutive.