Basic and Diluted Net Income per Share

9 Months Ended

Sep. 30, 2021

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, restricted stock units and performance-based 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,
	2021		2020		2021		2020
	(unaudited)				(unaudited)
Net income	$	2,576,261	$	1,074,646	$	5,432,804	$	731,587
Weighted-average shares outstanding — Basic		12,331,062		12,243,362		12,318,476		12,071,027
Effect of dilutive securities:
Stock options		187,737		204,108		191,439		294,202
Restricted stock units		72,327		45,839		50,201		49,703
Performance-based restricted stock units		12,440		—		10,809		—
Weighted-average shares outstanding — Diluted		12,603,566		12,493,309		12,570,925		12,414,932
Basic net income per share	$	0.21	$	0.09	$	0.44	$	0.06
Diluted net income per share	$	0.20	$	0.09	$	0.43	$	0.06

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,
	2021	2020	2021	2020
	(unaudited)		(unaudited)
Anti-dilutive stock options and restricted stock units	164	10,024	2,644	48,706