Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

14.Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during each period. Diluted earnings per share is based on the weighted average number of common shares outstanding as well as the effect of all dilutive common stock equivalents during each period net income is generated. For the years ended December 31, 2022, 2021 and 2020, the Company had 490,678, 831,077, and 1,159,440, securities, respectively, that were potentially dilutive in earnings per share calculations. Such dilution is dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. The exercise price for certain stock options awarded by the Company exceeded the average market price of the Company’s common stock for the years ended December 31, 2022, 2021 and 2020. Such stock options are antidilutive and are not included in the computation of earnings per share for those periods.

The following table reconciles the denominators used in the computations of both basic and diluted earnings per share:

	Year ended December 31,
	2022	2021	2020
Basic:
Weighted average shares outstanding	31,402,328	30,763,527	30,122,362
Diluted:
Total basic weighted average shares outstanding	31,402,328	30,763,527	30,122,362
Effect of potentially dilutive securities:
Common stock options	—	—	—
Total weighted average shares outstanding assuming dilution	31,402,328	30,763,527	30,122,362