Earnings Per Share

12 Months Ended

Dec. 31, 2020

7. 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 purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents, and are only included in the calculation of diluted earnings per share when their effect is dilutive.

	Year Ended December 31,
	2020		2019
	(in thousands, except per share amounts)
Numerator:
Net income	$	4,165	$	10,722
Dividends paid to preferred stockholders		—		(119	)
Net income available to common stockholders	$	4,165	$	10,603
Denominator:
Weighted average shares outstanding - basic		40,808		34,513
Potential common shares - options (treasury stock method)		1,956		2,478
Weighted average shares outstanding - diluted		42,764		36,991
Shares excluded due to an exercise price greater than weighted average stock price for the period		98		88
Earnings per common share:
Basic	$	0.10	$	0.31
Diluted	$	0.10	$	0.29