Earnings Per Share

12 Months Ended

Dec. 31, 2020

10. 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. Potential shares of common stock 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)	2020		2019

Basic earnings per share:
Net income (loss)	$	519	$	(18,150	)
Shares used in computation:
Weighted-average common stock outstanding		18,921		18,160
Basic earnings per share	$	0.03	$	(1.00	)

Diluted earnings per share:
Net income (loss)	$	519	$	(18,150	)
Shares used in computation:
Weighted-average common stock outstanding		18,921		18,160
Common stock equivalents		384		—
Weighted-average number of shares		19,305		18,160
Diluted earnings per share	$	0.03	$	(1.00	)

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 share of common stock excluded from the diluted calculation:

	For the Year Ended December 31,
(in thousands)	2020		2019

Common stock equivalents excluded due to net loss		—		526
Employee stock options and restricted stock units		14		88
		14		614