Net Income Per Common Share

3 Months Ended

Mar. 31, 2023

Net Income 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 earnings 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 March 31,
	2023		2022
Numerator:
Net income	$	761	$	1,935
Denominator:
Weighted-average shares of common stock outstanding, basic		20,450,994		19,896,654
Net income per common share, basic	$	0.04	$	0.10

Diluted EPS

	Three Months Ended March 31,
	2023		2022
Numerator:
Net income	$	761	$	1,935
Less: warrant liability fair value loss (gain) recognized		23		(11)
Net income attributable to common stockholders, diluted	$	784	$	1,924
Denominator:
Weighted-average shares of common stock outstanding, basic		20,450,994		19,896,654
Dilutive effect of stock options and RSUs		381,080		829,539
Weighted-average shares of common stock outstanding, diluted		20,832,074		20,726,193
Net income per common share, diluted	$	0.04	$	0.09

Potentially dilutive securities representing 1.6 million and 0.3 million stock options and RSUs that were outstanding during the three-months ended of March 31, 2023, and 2022, respectively, were excluded from the computation of diluted earnings per common share during these periods as their inclusion would have an antidilutive effect.