Earnings Per Share

12 Months Ended

Dec. 31, 2021

11. 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 computation of earnings per share is as follows:

	For the Year Ended December 31,
(in thousands, except per share data)	2021		2020

Diluted earnings per share:
Net income	$	3,731	$	519
Shares used in computation:
Weighted-average common stock outstanding		19,307		18,921
Common stock equivalents		527		384
Weighted-average number of shares		19,834		19,305
Diluted earnings per share	$	0.19	$	0.03

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)	2021		2020

Employee stock options and restricted stock units		15		14