Computation of Earnings per Share

3 Months Ended

Mar. 31, 2021

Note 5 – Computation of Earnings per Share

Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation. Potential common stock equivalents were not included in the per share calculation below for diluted earnings per share, because we had a net loss and the effect of their inclusion would be anti-dilutive.

Net income (loss) per share is calculated as follows (in thousands, except per share data):

	Three Months Ended March 31,
	2021			2020
Net loss	$	(1,448	)	$	(1,060	)
Shares outstanding:
Weighted-average common shares outstanding		21,494			21,522
Diluted shares outstanding		21,494			21,522
Net loss per share – basic	$	(0.07	)	$	(0.05	)
Net loss per share - diluted	$	(0.07	)	$	(0.05	)