Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2022

11. Earnings (Loss) Per Share

Basic earnings (loss) 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 computation of earnings per share is as follows:


	For the Year Ended December 31,
(in thousands, except per share data)	2022			2021

Diluted earnings per share:
Net income (loss)	$	(3,095	)	$	3,731
Shares used in computation:
Weighted-average common stock outstanding		20,716			19,307
Common stock equivalents		—			527
Weighted-average number of shares		20,716			19,834
Diluted earnings (loss) per share	$	(0.15	)	$	0.19

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 Year Ended December 31,
(in thousands)	2022		2021

Employee stock options and restricted stock units		336		15