EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

NOTE 15 – EARNINGS PER SHARE

Basic earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding for the period plus dilutive potential common shares, including performance share awards, using the treasury stock method. Performance share awards are included based on the number of shares that would be issued as if the end of the reporting period was the end of the performance period and the result was dilutive.

The following table sets forth the computation of the Company’s basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 (in thousands except share and per share data):


	Three months ended March 31,
	2024		2023
Numerator:
Net income	$	3,126	$	5,701
Less: Redeemable Convertible Preferred Stock dividends		—		(314	)
Net income attributable to common shareholders — basic	$	3,126	$	5,387
Add: Redeemable Convertible Preferred Stock dividends		—		314
Net income attributable to common shareholders — diluted	$	3,126	$	5,701
Denominator
Weighted-average common shares used in computing earnings per share — basic		29,768,568		11,951,137
Weighted-average effect of potentially dilutive securities:
Effect of potentially dilutive time-based stock options		—		1,006,729
Effect of potentially dilutive performance-based stock options		—		—
Effect of potentially dilutive redeemable convertible preferred stock		—		6,719,641
Weighted-average common shares outstanding — diluted		29,768,568		19,677,507
Earnings per share — basic	$	0.11	$	0.45
Earnings per share — diluted	$	0.11	$	0.29

As of March 31, 2024, the Company’s potentially dilutive securities consisted of options to purchase common stock. As of March 31, 2023, the Company's potentially dilutive securities consisted of redeemable convertible preferred stock and options to purchase common stock. Based on the amounts outstanding as of the three months ended March 31, 2024 and 2023, the Company excluded the following potential common shares from the computation of diluted earnings per share because including them would have had an anti-dilutive effect. The options excluded from the diluted earnings per share calculations were as follows:


	Three months ended March 31,
	2024		2023
Time-based options outstanding		4,427,659		140,135
Total		4,427,659		140,135

Our performance-based stock options were excluded from the diluted earnings per share calculations for the three months ended March 31, 2024 because including them would have had an anti-dilutive effect. Our performance-based stock options were excluded from the diluted earnings per share calculations for the three months ended March 31, 2024 because including them would have had an anti-dilutive effect. Our performance-based stock options were also excluded from the diluted earnings per share calculations for the three months ended March 31, 2023 because all necessary performance conditions were not satisfied by March 31, 2023. The options excluded from the diluted earnings per share calculations were as follows:


	Three months ended March 31,
	2024		2023
Performance-based options outstanding		534,063		534,063
Total		534,063		534,063