Basic and Diluted Net Income per Share

9 Months Ended

Sep. 30, 2020

Basic and Diluted Net Income per Share

Basic and Diluted Net Income per Share

3 — 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. Stock options and restricted stock units 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(unaudited)				(unaudited)
Net income	$	1,074,646	$	2,454,870	$	731,587	$	6,389,276
Weighted-average shares outstanding — Basic		12,243,362		11,369,404		12,071,027		11,188,761
Effect of dilutive securities:
Underwriters’ warrants		—		41,124		—		69,183
Stock Options		204,108		822,128		294,202		899,311
Restricted Stock Units		45,839		77,292		49,703		90,847
Weighted-average shares outstanding — Diluted		12,493,309		12,309,948		12,414,932		12,248,102
Basic net income per share	$	0.09	$	0.22	$	0.06	$	0.57
Diluted net income per share	$	0.09	$	0.20	$	0.06	$	0.52

Stock options and restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019
	(unaudited)		(unaudited)
Anti-dilutive stock options and restricted stock units	10,024	117,584	48,706	14,991