Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2022

13. Net Income (Loss) per Share

We compute basic net income per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for DSUs during the period. We compute diluted net income per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods where losses are reported, the weighted average number of shares of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options, warrants and shares issued pursuant to a Consideration Agreement as discussed in Note 6. Dilutive potential securities are excluded from the computation of earnings per share if their effect is antidilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method.

The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022			2021
	(Unaudited)				(Unaudited)
Numerator:
Net income (loss) applicable to common stockholders	$	1,150,231	$	699,306	$	(1,034,078	)	$	1,846,046
Denominator:
Weighted average common shares outstanding, basic		19,278,730		18,823,273		19,261,775			18,665,010
Effect of dilutive common shares		2,070,091		1,677,351		—			1,379,650
Weighted average common shares outstanding, diluted		21,348,821		20,500,624		19,261,775			20,044,660
Net income (loss) per share:
Basic	$	0.06	$	0.04	$	(0.05	)	$	0.10
Diluted	$	0.05	$	0.03	$	(0.05	)	$	0.09
Anti-dilutive securities excluded from diluted net income (loss) per share:
Stock options		638,157		436,018		375,657			484,081
Warrants		—		—		—			—
Total anti-dilutive securities excluded from net income (loss) per share		638,157		436,018		375,657			484,081