EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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 net earnings per share for the three and six months ended June 30, 2024 and 2023 (in thousands except share and per share data):


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Numerator:
Net income	$	365	$	937	$	3,492	$	6,638
Less: Redeemable Convertible Preferred Stock dividends		—		—		—		(314	)
Net income attributable to common shareholders — basic	$	365	$	937	$	3,492	$	6,324
Add: Redeemable Convertible Preferred Stock dividends		—		—		—		314
Net income attributable to common shareholders — diluted	$	365	$	937	$	3,492	$	6,638
Denominator
Weighted-average common shares used in computing earnings per share — basic		29,816,202		13,910,670		29,792,385		12,936,310
Weighted-average effect of potentially dilutive securities:
Effect of potentially dilutive time-based stock options		873,348		744,573		436,674		875,651
Effect of potentially dilutive performance-based stock options		164,132		110,514		82,066		55,257
Effect of potentially dilutive restricted stock units		19,754		—		9,877		—
Effect of potentially dilutive redeemable convertible preferred stock		—		5,981,219		—		6,350,430
Weighted-average common shares outstanding — diluted		30,873,436		20,746,976		30,321,002		20,217,648
Earnings per share — basic	$	0.01	$	0.07	$	0.12	$	0.49
Earnings per share — diluted	$	0.01	$	0.05	$	0.12	$	0.33

As of June 30, 2024, the Company’s potentially dilutive securities consisted of options to purchase common stock. Based on the amounts outstanding as of the three and six months ended June 30, 2024 and 2023, the Company excluded the following potential common shares from the computation of diluted net income per share because including them would have had an anti-dilutive effect:


	Three months ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Time-based options outstanding		140,135		140,135		140,135		140,135
Total		140,135		140,135		140,135		140,135