The Company’s wholly-owned subsidiary located in Sweden, has an overdraft credit line which allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20,000 Swedish krona, or $2,283 and $2,435, at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 there were no borrowings outstanding on this overdraft credit line. At December 31, 2020 there was 13,072 Swedish krona, or $1,591, outstanding on this overdraft credit line. During the nine months ended September 30, 2021, the subsidiary borrowed 243,347 Swedish krona, or $27,784, and repaid 256,418 Swedish krona, or $29,277.
The Company’s wholly-owned subsidiary located in Suzhou, China (the “Suzhou subsidiary”), has two credit lines (the “Suzhou credit line”) which allow up to a maximum borrowing level of 50,000 Chinese yuan, or $7,758 and $7,663 at September 30, 2021, and December 31, 2020. At September 30, 2021 and December 31, 2020 there was $1,551 and $4,521, respectively, in borrowings outstanding on the Suzhou credit line with weighted-average interest rates of 4.30% and 4.32%, respectively. The Suzhou credit line is included on the condensed consolidated balance sheet within current portion of debt. In addition, the Suzhou subsidiary has a bank acceptance draft line of credit which facilitates the extension of trade payable payment terms by 180 days. This bank acceptance draft line of credit allows up to a maximum borrowing level of 15,000 Chinese yuan, or $2,327 and $2,299, at September 30, 2021 and December 31, 2020, respectively. There was $0 and $414 utilized on the Suzhou bank acceptance draft line of credit at September 30, 2021 and December 31, 2020, respectively.
(8) Leases
The Company, as lessor, entered into a lease with a third-party lessee effective July 1, 2020, for our Canton, Massachusetts facility. In conjunction with the Canton restructuring plan outlined in Note 12, the Company ceased operations at this facility in March 2020. As discussed in Note 16, the Company sold the Canton facility and assigned the lease to the buyer on June 17, 2021. The Company recognized lease income on a straight-line basis over the lease term until the time of the sale. The Company recognized operating and variable lease income from the lease in our condensed consolidated statements of operations of $602 and $199, respectively, for the nine months ended September 30, 2021. The Company recognized operating and variable lease income from leases in our condensed consolidated statements of operations of $354 and $99, respectively, for both the three and nine months ended September 30, 2020.
(9) Earnings Per Share
Basic earnings per share was computed by dividing net income by the weighted-average number of Common Shares outstanding for each respective period. Diluted earnings per share was calculated by dividing net income by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. However, for all periods in which the Company recognized a net loss, the Company did not recognize the effect of the potential dilutive securities as their inclusion would be anti-dilutive. Potential dilutive shares of 239,254 for the three months ended September 30, 2021 were excluded from diluted loss per share because the effect would be anti-dilutive. Potential dilutive shares of 265,335 for the nine months ended September 30, 2020 were excluded from diluted loss per share because the effect would be anti-dilutive.
Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows:
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2021
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2020
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2021
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2020
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Basic weighted-average Common Shares outstanding
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27,147,150
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26,956,286
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27,100,484
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27,046,899
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Effect of dilutive shares
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-
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266,596
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331,034
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-
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Diluted weighted-average Common Shares outstanding
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27,147,150
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27,222,882
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27,431,518
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27,046,899
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There were 591,256 and 755,654 performance-based right to receive Common Shares outstanding at September 30, 2021 and 2020, respectively. The right to receive Common Shares are included in the computation of diluted earnings per share based on the number of Common Shares that would be issuable if the end of the quarter were the end of the contingency period.