Earnings Per Share

12 Months Ended

Dec. 31, 2021

Basic earnings per share is computed by dividing the net income by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed giving effect to all potentially weighted average dilutive shares including stock options and warrants. The dilutive effect of outstanding awards, if any, is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the reconciliation of the numerator and denominator of basic and diluted loss per share:


	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020
	(dollars in thousands, except per share data)
Numerator:
Net (loss)	$	(6,963)	$	(5,710)
Denominator:
Weighted average shares outstanding, basic	10,320		9,779
Dilutive effect of stock-based awards	—		—
Weighted average shares outstanding, diluted	10,320		9,779

Basic loss per share	$	(0.67)	$	(0.58)
Diluted loss per share	$	(0.67)	$	(0.58)

The effect of certain common stock equivalents were excluded from the computation of weighted average diluted shares outstanding for the twelve months ended December 31, 2021 and twelve months ended December 31, 2020, as inclusion would have resulted in anti-dilution. A summary of these anti-dilutive common stock equivalents is provided in the table below:


	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020
Number of options	846,731		726,500
Exercise price of options	$2.08 - $12.58		$2.36 - $12.58
Warrants (1)	156,320		—
Exercise price of warrants	$	3.12	—

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(1)Includes warrants to purchase 156,320 shares of common stock issued to the underwriters of the Company’s equity issuance in September 2021 with an exercise price of $3.12 per share of common stock, which expire on September 21, 2026.