Note 5 - Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

5.         Net Income (Loss) Per Share

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period, excluding any unvested restricted stock. Diluted net income (loss) per share is computed using the weighted average number of common shares, and if dilutive, potential common shares outstanding, as determined under the treasury stock and if-converted methods, during the period. Potential common shares consist of unvested restricted stock, common shares issuable upon the exercise of stock options and the exercise of warrants.

The following are the share amounts utilized to compute the basic and diluted net income (loss) per share for the three months ended March 31, 2022, and 2021, respectively:

	Three Months Ended March 31,
	2022			2021
Basic Shares:
Weighted average common shares outstanding		13,843,260			13,253,050
Weighted average unvested restricted stock		(548,463	)		(75,944	)
Basic Shares		13,294,797			13,177,106
Diluted Shares:
Basic shares		13,294,797			13,177,106
Weighted average dilutive securities		—			140,281
Diluted Shares		13,294,797			13,317,387

For the three months ended March 31, 2022, the Company’s basic and diluted net loss per share are the same because the Company generated a net loss for the period. As a result, potentially dilutive securities are excluded from diluted net loss per share because they have an anti-dilutive impact. For the three months ended March 31, 2021, weighted average dilutive securities included dilutive options and restricted stock awards.

For the three months ended March 31, 2022, and 2021, 0.1 million and 4.4 million, respectively, of potentially anti-dilutive securities related to common stock have been excluded from the calculation of diluted net earnings per share.