Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2019

Note 3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted income (loss) per common share using the treasury stock method and the as-if-converted method, as applicable.

The following table presents the computation of net income (loss) per share:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Numerator:
Net income (loss) (in thousands)	$	662	$	(3,190	)	$	998	$	(4,296	)
Denominator:
Weighted average common shares outstanding - basic		9,696,876		9,439,025			9,661,474		9,459,272
Plus dilutive effect of potential common shares		430,843		—			409,826		—
Weighted average common shares outstanding - diluted		10,127,719		9,439,025			10,071,300		9,459,272
Net income (loss) per share:
Basic	$	0.07	$	(0.34	)	$	0.10	$	(0.45	)
Diluted	$	0.07	$	(0.34	)	$	0.10	$	(0.45	)

Diluted weighted average common shares outstanding for the three months ended June 30, 2019 includes 8,528 warrants and 422,315 options outstanding. Diluted weighted average common shares outstanding for the six months ended June 30, 2019 includes 4,614 warrants and 405,212 options outstanding.

Potentially dilutive securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Employee stock options		67,104		1,152,520		257,981		1,349,833
Warrants outstanding		—		51,003		—		51,003
Total		67,104		1,203,523		257,981		1,400,836