Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Net Income (Loss) per Share

12. Net Income (Loss) per Share

We compute basic net income (loss) 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 (loss) 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.  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,
	2020		2019		2020		2019
	(Unaudited)				(Unaudited)
Numerator:
Net income (loss) applicable to common stockholders	$	1,209,003	$	27,102	$	977,336	$	(136,650	)
Denominator:
Weighted average common shares outstanding, basic		15,464,604		15,339,743		15,430,653		15,334,397
Effect of dilutive common shares		3,214		22,663		10,250		—
Weighted average common shares outstanding, diluted		15,467,818		15,362,406		15,440,903		15,334,397
Net income (loss) per share:
Basic	$	0.08	$	0.00	$	0.06	$	(0.01	)
Diluted	$	0.08	$	0.00	$	0.06	$	(0.01	)
Anti-dilutive securities excluded from diluted net income (loss) per share:
Stock options		3,342,833		2,690,293		3,346,047		2,712,956
Warrants		521,060		1,733,565		521,060		1,733,565
Total anti-dilutive securities excluded from net income (loss) per share		3,863,893		4,423,858		3,867,107		4,446,521