Note 4 - Basic and Diluted Net Income Per Share

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

4.         Basic and Diluted Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding during the period when the effect is dilutive. The number of dilutive common equivalent shares outstanding during the period was determined in accordance with the treasury-stock method. Common equivalent shares consisted of common stock issuable upon the exercise of outstanding options and common stock issuable upon the vesting of outstanding, unvested SUAs. Basic and diluted weighted average common shares outstanding for the three months ended March 31, 2022, and 2021 were as follows (in thousands):

	Three Months Ended
	March 31,
	2022		2021
Weighted average common shares outstanding, basic		5,590		5,537
Dilutive common equivalent shares		56		107
Weighted average common shares outstanding, diluted		5,646		5,644

The computation of diluted earnings per share for the three months ended March 31, 2022, and 2021 excludes the effect of the potential exercise of stock awards, including stock options, when the effect is anti-dilutive. For the three months ended March 31, 2022, and 2021, the number of antidilutive stock awards excluded from diluted earnings per share were 56 thousand and 107 thousand, respectively.