Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Income/(loss) per share:

Earnings (Loss) Per Share

NOTE 8 – Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the period and, when dilutive, potential shares from stock options using the treasury stock method, the weighted average number of unvested restricted shares, the weighted-average number of restricted stock units, the number of shares issuable under the terms of the Holzworth earnout and the weighted average number of warrants to purchase common stock outstanding for the period. Shares from stock options are included in the diluted earnings per share calculation only when options exercise prices are lower than the average market value of the common shares for the period presented. In periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation because they are anti-dilutive. In accordance with ASC 260, “Earnings Per Share”, the following table reconciles basic shares outstanding to fully diluted shares outstanding.

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2022		2021		2022		2021
Weighted average common shares outstanding		21,133,536		22,233,876		21,885,805		21,899,799
Potentially dilutive equity awards		1,583,915		2,449,930		2,020,993		2,319,127
Weighted average common shares outstanding, assuming dilution		22,717,451		24,683,806		23,906,798		24,218,926

For the three and nine months ended September 30, 2022, the weighted average number of options to purchase common stock not included in potentially dilutive equity awards because the effects are anti-dilutive, or the performance condition was not met was 1,965,000 and 1,317,216, respectively. The number of shares issuable under the terms of the Holzworth earnout as of September 30, 2022, if all paid in shares of common stock, is 839,161 and is included in potentially dilutive equity awards in the chart above.

The weighted average number of options to purchase common stock not included in potentially dilutive equity awards because the effects are anti-dilutive, or the performance condition was not met was 1,205,000 for the three and nine month periods ended September 30, 2021. The number of shares issuable under the terms of the Holzworth earnout as of September 30, 2021, if all paid in shares of common stock, is 1,430,889 and is included in potentially dilutive equity awards in the chart above.