Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

12.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 three months ended September 30, 2024 and 2023, the Company had 187,235 and 240,241 securities, respectively, that were potentially dilutive in earnings per share calculations. For the nine months ended September 30, 2024 and 2023, the Company had 196,744 and 256,128 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 three and nine months ended September 30, 2024 and 2023. Such stock options are antidilutive and are not included in the computation of earnings per share for those periods. The Company reported a net loss for the three months ended September 30, 2023 and nine months ended September 30, 2024 and 2023; therefore, all potentially dilutive securities are antidilutive and are excluded from the computation of diluted loss per share for such periods.

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

	Three months ended		Nine months ended September 30,
	September 30,		September 30,
	2024	2023	2024	2023
Basic:
Weighted average shares outstanding	34,494,302	32,384,446	33,390,722	32,285,921
Diluted:
Total basic weighted average shares outstanding	34,494,302	32,384,446	33,390,722	32,285,921
Effect of potentially dilutive securities:
Common stock options	23,815	—	—	—
Employee stock purchase plan	563	—	—	—
Total weighted average shares outstanding assuming dilution	34,518,680	32,384,446	33,390,722	32,285,921