Earnings Per Share

12 Months Ended

Dec. 31, 2019

8. Earnings Per Share

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock subject to repurchase by the Company and options are considered to be common stock equivalents, and are only included in the calculation of diluted earnings per share when their effect is dilutive.

	Year Ended December 31,
	2019			2018
	(in thousands, except per share amounts)
Numerator:
Net income (loss)	$	10,722		$	(2,740	)
Dividends paid to preferred stockholders		(119	)		(404	)
Net income (loss) available to common stockholders	$	10,603		$	(3,144	)
Denominator:
Weighted average shares outstanding - basic		34,513			22,322
Potential common shares - options (treasury stock method)		2,478			—
Weighted average shares outstanding - diluted		36,991			22,322
Shares excluded due to an exercise price greater than weighted average stock price for the period		88			1,081
Earnings (loss) per common share:
Basic	$	0.31		$	(0.14	)
Diluted	$	0.29		$	(0.14	)