Earnings per share

9 Months Ended

Sep. 30, 2023

6. Earnings per share

The following table sets forth the reconciliation of basic and diluted weighted average shares outstanding:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands, except per share data)
Net income (loss)	$	906	$	528	$	4,810	$	(6,196	)

Shares:
Basic: Weighted average common shares outstanding		9,958		9,911		9,948		9,902
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method		94		–		75		–
Diluted: Weighted average common and common equivalent shares outstanding		10,052		9,911		10,023		9,902

Net income (loss) per common share:
Basic	$	0.09	$	0.05	$	0.48	$	(0.63	)
Diluted	$	0.09	$	0.05	$	0.48	$	(0.63	)

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period, as the inclusion of these stock awards in the computation of diluted earnings would be anti-dilutive. For the nine months ended September 30, 2022, there were 1.6 million of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share. Furthermore, in periods when a net loss is reported, such as the nine months September 30, 2022, basic and diluted net loss per common share are calculated using the same method.