Note 3 - Net Income Per Share

3 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3:  Net Income Per Share

In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 260 (“Earnings Per Share”) basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per common share includes the dilutive effect of potential restricted stock and the effects of the potential conversion of preferred shares, calculated using the treasury stock method. Unvested restricted stock and convertible preferred shares issued by the Company represent the only dilutive effect reflected in the diluted weighted average shares outstanding.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in thousands, except for per share amounts):

	Three Months Ended June 30,
	2022		2021
Net income (numerator):
Net income	$	2,775	$	4,428
Shares (denominator):
Weighted average number of common shares outstanding used in basic computation		20,208		20,109
Common shares issuable upon vesting of restricted stock		73		81
Common shares issuable upon conversion of preferred shares		10		10
Shares used in diluted computation		20,291		20,200
Net income per common share:
Basic	$	0.14	$	0.22
Diluted	$	0.14	$	0.22

For the three months ended June 30, 2022 and 2021, 251,192 and 22,248 shares of common restricted stock, respectively, were excluded from the computations of diluted net income per common share, as their inclusion would have had an anti-dilutive effect on diluted net income per common share.