Net Income Per Share

9 Months Ended

Sep. 30, 2022

The number of shares used to calculate basic net income per common share is based on the weighted average number of the Company’s outstanding common shares during the respective period. The number of shares used to calculate diluted net income per common share is based on the number of common shares used to calculate basic net income per common share plus the dilutive effect of stock options and other stock-based instruments held by the Company’s employees and directors during the period, and the Company’s outstanding warrants. The dilutive effect of outstanding stock-based instruments is determined by application of the treasury stock method. The stock options and warrants become dilutive for diluted net income per common share calculations when the market price of the Company’s common stock exceeds the exercise price. Anti-dilution also occurs in periods of a net loss, and the dilutive impact of all warrants and share-based compensation awards are excluded.

For the three months ended September 30, 2022 and 2021, 0 and 942,408 warrants and stock options respectively, were excluded from the computation of dilutive net income per common share because they would have been anti-dilutive. For nine months ended September 30, 2022 and 2021, 0 and 948,351 warrants, stock options, and other stock-based instruments, respectively, were excluded from the computation of dilutive net income per common share because they would have been anti-dilutive. When applying the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share are higher than the Company’s average stock price during an applicable period.

The following table presents the net income per common share for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income
Income from continuing operations	$	251,836	$	83,693	$	1,228,269	$	32,412
Income (loss) from discontinued operations	981		(429)		(404)		(1,067)
Net income	$	252,817	$	83,264	$	1,227,865	$	31,345

Basic
Weighted average common shares outstanding - basic	17,119,328		18,445,709		18,019,161		18,426,639

Basic income per common share:
Income from continuing operations	$	14.71	$	4.54	$	68.16	$	1.76
Income (loss) from discontinued operations	0.06		(0.03)		(0.02)		(0.06)
Net income	$	14.77	$	4.51	$	68.14	$	1.70

Diluted
Weighted average common shares outstanding - basic	17,119,328		18,445,709		18,019,161		18,426,639
Diluted effect of warrants	170,827		—		312,395		—
Diluted effect of stock options	2,043		1,938		4,902		1,654
Diluted effect of other stock-based instruments	426,319		465,705		464,216		355,350
Weighted average common shares outstanding - diluted	17,718,517		18,913,352		18,800,674		18,783,643

Diluted income per common share:
Income from continuing operations	$	14.21	$	4.43	$	65.33	$	1.73
Income (loss) from discontinued operations	0.06		(0.03)		(0.02)		(0.06)
Net income	$	14.27	$	4.40	$	65.31	$	1.67