Net Income Per Common Share

9 Months Ended

Sep. 30, 2022

Net Income (Loss) Per Common Share

Net Income Per Common Share

9. Net Income Per Common Share

Basic net income per common share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding in addition to the potential impact of dilutive securities including restricted stock units, warrants, and options. In periods with a net loss, potentially dilutive securities are excluded from the Company’s calculation of earning per share as their inclusion would have an antidilutive effect.

The following tables set forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except share and per share amounts):

Basic EPS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income	$	1,907	$	880	$	5,513	$	676
Denominator:
Weighted-average shares of common stock outstanding, basic		20,206,728		19,511,132		20,058,744		19,296,241
Net income per common share, basic	$	0.09	$	0.05	$	0.27	$	0.03

Diluted EPS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income	$	1,907	$	880	$	5,513	$	676
Less: warrant liability fair value gain recognized		—		—		(21)		—
Net income attributable to common stockholders, diluted		1,907		880	$	5,492	$	676
Denominator:
Weighted-average shares of common stock outstanding, basic		20,206,728		19,511,132		20,058,744		19,296,241
Dilutive effect of stock options and RSUs		332,336		401,786		640,070		491,648
Weighted-average shares of common stock outstanding, diluted		20,539,064		19,912,918		20,698,814		19,787,889
Net income per common share, diluted	$	0.09	$	0.04	$	0.27	$	0.03

Potentially dilutive securities representing 2.0 million and 1.3 million stock options and RSUs that were outstanding during the three-months ended of September 30, 2022, and 2021, respectively, and 0.7 million and 1.3 million stock options and RSUs outstanding during the nine months ended September 30, 2022 and 2021, respectively, were excluded from the computation of diluted earnings per common share during these periods as their inclusion would have an antidilutive effect.