Basic and Diluted Net Income per Share

3 Months Ended

Mar. 31, 2015

Basic and Diluted Net Income per Share

Basic and Diluted Net Income per Share

2 — Basic and Diluted Net Income per Share

Basic net income per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. As discussed further in Note 13, the effect of our 1.75:1 stock split and recapitalization is reflected in the number of outstanding shares and per share information in the table below. The underwriters’ warrants, preferred stock and stock options granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding.

The following table presents the computation of basic and diluted net income per share:

	Three Months Ended March 31,
	2015		2014
	(unaudited)
Net income	$	1,487,495	$	523,367
Weighted-average shares outstanding — Basic	10,906,224		7,000,000
Effect of dilutive securities:
Underwriters’ warrants	90,612		—
Preferred stock	—		1,400,000
Stock options	981,123		459,015
Weighted-average shares outstanding — Diluted	11,977,959		8,859,015
Basic net income per share	$	0.14	$	0.07
Diluted net income per share	$	0.12	$	0.06

Stock options to purchase shares of our common stock excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows:

	Three Months Ended March 31,
	2015	2014
	(unaudited)
Anti-dilutive stock options	215,000	586,509