Earnings Per Share

9 Months Ended

Sep. 30, 2022

7. Earnings Per Share

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period (“common stock equivalents”). Common stock equivalents

consist of incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units utilizing the treasury stock method.

The weighted-average diluted shares outstanding computation is:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands, except per share data)	2022		2021		2022		2021
	(unaudited)				(unaudited)
Weighted-average common stock outstanding		20,806		19,318		20,686		19,262
Common stock equivalents		—		494		—		525
Weighted-average number of shares		20,806		19,812		20,686		19,787

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential shares of common stock excluded from the diluted calculation:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
	(unaudited)				(unaudited)
Common stock equivalents excluded due to net loss		6		—		97		—
Employee stock options and RSUs		976		31		672		31
		982		31		769		31