Net Income Per Common Share

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	3,885	$	1,671	$	4,646	$	3,606
Denominator:
Weighted-average shares of common stock outstanding, basic		20,657,404		20,069,444		20,554,769		19,983,526
Net income per common share, basic	$	0.19	$	0.08	$	0.23	$	0.18

Diluted EPS

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	3,885	$	1,671	$	4,646	$	3,606
Less: warrant liability fair value loss (gain) recognized		—		(11)		23		(21)
Net income attributable to common stockholders, diluted		3,885		1,660	$	4,669	$	3,585
Denominator:
Weighted-average shares of common stock outstanding, basic		20,657,404		20,069,444		20,554,769		19,983,526
Dilutive effect of stock options and RSUs		576,849		354,839		513,290		643,021
Weighted-average shares of common stock outstanding, diluted		21,234,253		20,424,283		21,068,059		20,626,547
Net income per common share, diluted	$	0.18	$	0.08	$	0.22	$	0.17

Potentially dilutive securities representing 0.9 million and 2.0 million stock options and RSUs that were outstanding during the three months ended of June 30, 2023, and 2022, respectively, and 1.3 million and 0.6 million stock options and RSUs outstanding during the six months ended June 30, 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.