EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS PER SHARE

Basic earnings per share is computed by dividing the Company’s net income by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings per share is computed by dividing the Company’s net income by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options “in-the-money”, unvested restricted stock, and unvested restricted stock units. The dilutive impact of stock options, unvested restricted stock, and unvested restricted stock units is determined by applying the “treasury stock” method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period; or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met.

A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,
		2023		2022
Earnings per share (“EPS”):



Basic		$	0.12	$	1.02



Diluted		$	0.11	$	0.97
EPS numerator - basic and diluted:


Net income		$	354	$	3,019
EPS denominator (in thousands):
Weighted average common stock outstanding - basic		3,033		2,967
Common stock equivalents: restricted stock units and restricted shares of common stock		89		150
Weighted average number of common stock outstanding - diluted		3,122		3,117

The weighted average number of shares outstanding used in the computation of diluted net earnings per share for the three months ended March 31, 2023 and 2022 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:


	Three Months Ended March 31,
		2023	2022
Unvested restricted shares of common stock		—	—
Unvested restricted stock units		1,000	—

Total		1,000	—