Earnings Per Common Share

9 Months Ended

Sep. 30, 2023

Earnings per common share:

Earnings Per Common Share

4. Earnings Per Common Share

Basic net income/(loss) per common share is computed by dividing the net income/(loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed giving effect to all dilutive common stock equivalents, consisting of common stock options. Diluted net loss per common share for the three months ended September 30, 2022 and nine months ended September 30, 2023 and 2022 is the same as basic net loss per common share because the common share equivalents were anti-dilutive due to the net loss. The following table sets forth the computation of basic and diluted net income per common share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2023		2022			2023			2022
Net income/(loss) (in thousands) (A)	$	1,704	$	(696	)	$	(423	)	$	(2,812	)
Weighted-average share reconciliation:
Weighted-average basic shares outstanding (B)		25,995,507		22,620,703			25,901,686			22,439,575
Dilutive effect of stock-based awards		1,687,258		-			-			-
Diluted weighted-average outstanding shares of common stock (C)		27,682,765		22,620,703			25,901,686			22,439,575
Earnings per common share:
Basic (A/B)	$	0.07	$	(0.03	)	$	(0.02	)	$	(0.13	)
Diluted (A/C)	$	0.06	$	(0.03	)	$	(0.02	)	$	(0.13	)

For the three and nine months ended September 30, 2023 and 2022, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans, were excluded from the computation of diluted net income per share because including them would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Stock options		4,708,364		3,140,362		4,582,503		2,471,886