EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2023 and 2022 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Earnings per share (“EPS”):



Basic	$	0.19	$	1.02	$	0.30	$	2.04



Diluted	$	0.18	$	0.98	$	0.30	$	1.95
EPS numerator - basic and diluted:


Net income	$	578	$	3,093	$	932	$	6,112
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	3,084		3,028		3,059		2,997
Common stock equivalents: restricted stock units and restricted shares of common stock	54		118		71		135
Weighted average number of common stock outstanding - diluted	3,138		3,146		3,130		3,132

The weighted average number of shares outstanding used in the computation of diluted net earnings per share for the three and six months ended June 30, 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 June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Unvested restricted shares of common stock	—	—	—	—
Unvested restricted stock units	—	30,493	497	15,338

Total	—	30,493	497	15,338