Earnings per share ("EPS")

6 Months Ended

Jun. 30, 2021

15. 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 and six months ended June 30, 2021, 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Weighted average common shares-basic		19,650,610		19,215,392		19,575,127		19,149,523
Effect of dilutive securities
Unexercised stock options and stock purchase plan		171,459		—		—		57,249
Unvested restricted stock awards and units		116,323		—		—		64,695
Weighted average common shares-diluted		19,938,392		19,215,392		19,575,127		19,271,467

There were 787,343 and 2,141,086 weighted average outstanding stock options and restricted stock awards and units not included in the diluted EPS computation for the three months ended June 30, 2021 and 2020, respectively, and 1,412,503 and 1,406,046 weighted average outstanding stock options and restricted stock awards and units not included in the diluted EPS computation for the six months ended June 30, 2021 and 2020, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based restricted stock awards and units, all necessary conditions had not been satisfied by the end of the respective period.