NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2020

NET INCOME PER SHARE

NET INCOME PER SHARE

3. NET INCOME PER SHARE

In accordance with ASC 260, Earnings Per Share, basic net income per share amount is computed using the weighted-average number of shares of common stock outstanding during the periods presented, while diluted net income per share is computed using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of diluted earnings per share result from the assumed exercise of stock options and restricted stock awards using the treasury stock method. For the three and nine months ended September 30, 2020, there were 21,813 and 23,327, respectively, of common equivalent shares attributable to stock options and restricted stock awards that were included in the calculation of diluted net income per share. For the three and nine months ended September 30, 2019 there were 24,822 and 41,036, respectively, of common equivalent shares attributable to stock options and restricted stock awards that were included in the calculation of diluted net income per share. There were 200,630 and 176,389 stock options and restricted stock awards excluded from the calculation of diluted net income per share for the three and nine months ended September 30, 2020, respectively, because their effects are anti-dilutive. There were 60,500 and 60,000 stock options and restricted stock awards to purchase shares excluded from the calculation of diluted net income per share for the three and nine months ended September 30, 2019, respectively, because their effects are anti-dilutive.