EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2024

13. EARNINGS PER SHARE

We use the two-class method of computing EPS, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared. Under the two-class method, basic earnings per share is computed by dividing the income attributable to Immersion stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Potential common stock, computed using the treasury stock method, includes stock options and stock awards.

The following is a reconciliation of the denominators used in computing basic and diluted net income per share (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Numerator:
Net income attributable to Immersion stockholders	$	28,945	$	7,028	$	47,600	$	15,306

Denominator:
Weighted-average shares outstanding, basic		31,879		32,583		31,784		32,474
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs		646		227		623		365
Weighted average shares outstanding, diluted		32,525		32,810		32,407		32,839

We include PSUs in the calculation of diluted earnings per share if the applicable performance condition has been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.

For the three and six months ended June 30, 2024 and 2023, we had stock options, RSUs, PSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Stock options	$	—	$	136	$	—	$	138
RSUs, RSAs and PSUs		—		10		—		5
Total		—		146		—		143