INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2021

12. INCOME PER COMMON SHARE

Net income per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable periods. Diluted net income per share includes the potentially dilutive effect of common shares subject to outstanding stock options and restricted stock awards using the treasury stock method. Under the treasury stock method, shares subject to certain outstanding stock options and restricted stock awards have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options or the vesting of those restricted stock awards would lead to a net reduction in common shares outstanding. As a result, stock options to acquire 2,000 and 15,320 weighted common shares have been excluded from the diluted weighted shares outstanding for the years ended December 31, 2021 and December 31, 2020, respectively.

A reconciliation of net income per share is as follows (in thousands, except per share data):

	Years ended December 31,
	2021		2020
Numerator:
Net income	$	2,295	$	1,063
Denominator:
Weighted average common shares outstanding		5,342		5,296
Dilutive potential common shares		16		20
Shares used in diluted net income per common share calculations		5,358		5,316
Basic net income per common share	$	0.43	$	0.20
Diluted net income per common share	$	0.43	$	0.20