Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2020

10.	Earnings Per Share

Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share assumes the issuance of potentially dilutive shares of common stock during the period. The following table reconciles the numerators and denominators of the basic and diluted income per share computations:

	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator:	2020		2019		2020		2019
Net income (in thousands)	$	2,940	$	1,135	$	6,662	$	556
Denominator:
Weighted average common shares outstanding:
Basic		20,179,056		19,781,527		20,060,416		19,690,737
Dilutive effect of common stock equivalents		1,484,358		897,904		1,577,065		813,196
Diluted		21,663,414		20,679,431		21,637,481		20,503,933
Net income per share:
Basic	$	0.15	$	0.06	$	0.33	$	0.03
Diluted	$	0.14	$	0.05	$	0.31	$	0.03

For both the

three

and

nine

months ended

September 30, 2020,

less than

0.1

million of outstanding options and restricted stock units with an exercise price above the current market value of the Company's common stock were

not

included in the calculation because they would have an anti-dilutive effect. For the

three

and

nine

months ended

September 30, 2019,

0.1

million and less than

0.1

million, respectively, of outstanding options and restricted stock units with an exercise price above the current market value of the Company's common stock were

not

included in the calculation because they would have an anti-dilutive effect.