Earnings per Share

12 Months Ended

Dec. 31, 2021

2. Earnings per Share

The Company computes earnings per share data under two different disclosures, basic and diluted, for all periods in which consolidated statements of income are presented. Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, less shares subject to repurchase. Diluted earnings per share are computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents consist of stock options using the treasury stock method. Common stock options are excluded from the computation of diluted earnings per share if their effect is anti-dilutive.

The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share:

	Years Ended December 31,
	2021		2020
Basic Income Per Share computation:
Numerator:
Net income	$	153	$	3,417
Denominator:
Common shares outstanding		18,017,006		18,207,396
Net Income per common share - basic
Net income	$	0.01	$	0.19
Diluted Income Per Share computation:
Denominator:
Common shares outstanding		18,017,006		18,207,396
Restricted shares subject to vesting		104,798		191,392
Total shares		18,121,804		18,398,788
Income per common share - diluted
Net income	$	0.01	$	0.19