Note 10 - Net Income Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

(10) Net Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Basic weighted average common shares outstanding		7,570		7,531		7,559		7,522
Weighted average common equivalent shares due to restricted stock, stock options and RSUs		68		66		70		63
Diluted weighted average common shares outstanding		7,638		7,597		7,629		7,585

The computation of diluted net income per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related stock options during the period.  These outstanding stock options are not included in the computation of diluted net income per share because the effect would be antidilutive.  For both the three- and nine-month periods ended September 30, 2022, the number of stock options excluded from the computation of diluted net income per share for this reason was 9,876.  For both the three- and nine-month periods ended September 30, 2021, the number of stock options excluded from the computation of diluted net income per share for this reason was 10,716.