Earnings per share ("EPS")

3 Months Ended

Mar. 31, 2022

14. Earnings per share (“EPS”)

The Company uses the two-class method of computing basic EPS due to the existence of non-vested restricted stock awards with nonforfeitable rights to dividends or dividend equivalents (referred to as participating securities). For the three months ended March 31, 2022, no significant adjustments were made to net income for purposes of calculating basic and diluted EPS.

The following is a reconciliation of the weighted average shares used in diluted EPS computations.


	Three Months Ended March 31,
	2022		2021
Weighted average common shares-basic		19,897,695		19,526,872
Effect of dilutive securities
Unexercised stock options and stock purchase plan		—		—
Unvested restricted stock awards and units		—		—
Weighted average common shares-diluted		19,897,695		19,526,872

There were 2,461,446 and 2,037,663 weighted average outstanding (i) stock options and (ii) restricted stock awards and units, respectively, not included in the diluted EPS computation for the three months ended March 31, 2022 and 2021, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based restricted stock units, all necessary conditions had not been satisfied by the end of the respective period.