NOTE

: NET LOSS PER SHARE OF COMMON STOCK

Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC

No.

260,

“Earnings Per Share.”

	Nine months ended September 30,						Three months ended September 30,
	2019 (unaudited)			2018 (unaudited)			2019 (unaudited)		2018 (unaudited)
Numerator:
Net income (loss)	$	(3,034	)	$	(1,729	)	$	775	$	2,543
Denominator (in thousands):
Basic weighted-average common stock outstanding		21,936			22,091			21,953		21,997
Effect of stock -based awards		—			—			451		431
Diluted weighted average common stock outstanding		21,936			22,091			22,404		22,428

Basic net income (loss) per share	$	(0.14	)	$	(0.08	)	$	0.04	$	0.12
Diluted net income (loss) per share	$	(0.14	)	$	(0.08	)	$	0.03	$	0.11

The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was

105,901

shares for the

three

months ended

September 30, 2019.

The total number of shares related to the outstanding equity-based awards excluded from the calculation of diluted net loss per share was

1,385,525

for the

nine

months ended

September 30, 2019.

The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was

136,113

shares for the

three

months ended

September 30, 2018.

The total number of shares related to the outstanding equity-based awards excluded from the calculation of diluted net loss per share was

1,273,610

for the

nine

months ended

September 30, 2018.