EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

5. EARNINGS PER SHARE

Basic earnings per share (“EPS”) are computed based on the weighted average number of common shares outstanding during the period. Diluted EPS includes additional common shares that would have been outstanding if potential common shares with a dilutive effect, such as stock awards from the Company’s restricted stock plan, had been issued. Anti-dilutive securities represent potentially dilutive securities which are excluded from the computation of diluted EPS as their impact would be anti-dilutive. Diluted EPS is computed using the treasury stock method.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except share data)	2022		2021			2022		2021

Numerator:
Net income (loss)	$	723	$	(16	)	$	779	$	1,269

Denominator:

Basic weighted-average common shares ouststanding		8,235,610		8,663,921			8,361,959		8,712,939
Dilutive effect of service-based restricted stock awards granted to Board of Directors under the Plan		8,858		-			7,208		5,129
Dilutive effect of service-based restricted stock awards granted to employees under the Plan		28,089		-			14,391		-
Diluted weighted-average common shares outstanding		8,272,557		8,663,921			8,383,558		8,718,068

Net income (loss) per common share:
Basic	$	0.09	$	-		$	0.09	$	0.15
Diluted	$	0.09	$	-		$	0.09	$	0.15

(1) For the three months ended September 30, 2022, there were 178 shares excluded from the diluted EPS calculation, because the impact of their assumed vesting would be anti-dilutive. For the three months ended September 30, 2021, there were 15,326 shares excluded from the diluted EPS calculation, because the impact of their assumed vesting would be anti-dilutive due to a net loss in that period.