Earnings Per Share

Basic earnings per share is calculated using the weighted average number of shares of the Company’s common stock issued and outstanding during a certain period, and is calculated by dividing net income attributable to Apollo Medical Holdings, Inc. by the weighted average number of shares of the Company’s common stock issued and outstanding during such period. Diluted earnings per share is calculated using the weighted average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period, using the as-if converted method for secured convertible notes, preferred stock, and the treasury stock method for options and common stock warrants.

As of March 31, 2020 and December 31, 2019 APC held 17,307,214 and 17,290,317 shares of ApolloMed’s common stock, respectively, which are treated as treasury shares for accounting purposes and not included in the number of shares of common stock outstanding used to calculate earnings per share.

Below is a summary of the earnings per share computations:



Three Months Ended March 31,	2020		2019
Earnings per share – basic	$	0.11	$	—
Earnings per share – diluted	$	0.11	$	—
Weighted average shares of common stock outstanding – basic	36,010,268		34,496,622
Weighted average shares of common stock outstanding – diluted	37,439,099		38,074,174

Below is a summary of the shares included in the diluted earnings per share computations:



Three Months Ended March 31,	2020	2019
Weighted average shares of common stock outstanding – basic	36,010,268	34,496,622
10% shares held back pursuant to indemnification clause	—	1,519,805
Stock options	185,830	455,381
Warrants	1,207,445	1,602,366
Restricted stock units	35,556	—
Weighted average shares of common stock outstanding – diluted	37,439,099	38,074,174