Net Income Per Common Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	2,438	$	1,907	$	7,084	$	5,513
Denominator:
Weighted-average shares of common stock outstanding, basic		20,848,558		20,206,728		20,653,775		20,058,744
Net income per common share, basic	$	0.12	$	0.09	$	0.34	$	0.27

Diluted EPS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income	$	2,438	$	1,907	$	7,084	$	5,513
Less: warrant liability fair value loss (gain) recognized		(48)		—		(25)		(21)
Net income attributable to common stockholders, diluted	$	2,390	$	1,907	$	7,059	$	5,492
Denominator:
Weighted-average shares of common stock outstanding, basic		20,848,558		20,206,728		20,653,775		20,058,744
Dilutive effect of stock options and RSUs		980,231		332,336		623,129		640,070
Weighted-average shares of common stock outstanding, diluted		21,828,789		20,539,064		21,276,904		20,698,814
Net income per common share, diluted	$	0.11	$	0.09	$	0.33	$	0.27

Potentially dilutive securities representing 0.5 million and 2.0 million stock options and RSUs that were outstanding during the three months ended of September 30, 2023, and 2022, respectively, and 0.8 million and 0.7 million stock options and RSUs outstanding during the nine months ended September 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.