Earnings Per Share

9 Months Ended

Sep. 30, 2020

5. Earnings Per Share

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, common stock subject to repurchase by the Company, options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

The following table sets forth the details of basic and diluted earnings per share:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2020		2019			2020		2019
	(unaudited, in thousands, except per share amounts)					(unaudited, in thousands, except per share amounts)
Numerator:
Net income	$	161	$	3,567		$	3,585	$	7,051
Dividends paid to preferred stockholders		—		(52	)		—		(119	)
Net income available to common stockholders	$	161	$	3,515		$	3,585	$	6,932
Denominator:
Weighted average shares outstanding – basic		41,351		36,094			40,656		33,170
Potential common shares – options / warrants (treasury stock method)		1,675		3,378			1,921		2,117
Weighted average shares outstanding – diluted		43,026		39,472			42,577		35,287

Shares excluded (anti-dilutive)		101		67			101		131

Net earnings per common share:
Basic	$	0.00	$	0.10		$	0.09	$	0.21
Diluted	$	0.00	$	0.09		$	0.08	$	0.20