Net Income (Loss) Per Share. Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average shares outstanding and excludes any dilutive effects of stock options and restricted stock units and awards. Diluted net income (loss) per share gives effect to all diluted potential common shares outstanding during the year.
Weighted average common shares outstanding for the years ended December 31, 2022 and 2021 were as follows:
Year ended December 31 |
| 2022 |
|
| 2021 |
| ||
Denominator for basic net income (loss) per share - weighted average shares |
|
| 1,791,000 |
|
|
| 1,760,000 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
Stock options, restricted stock units and restricted stock awards |
|
| 5,000 |
|
|
| - |
|
Denominator for diluted net income (loss) per share - weighted average shares |
|
| 1,796,000 |
|
|
| 1,760,000 |
|
For the year ended December 31, 2022, the Company excluded stock awards where the market price of the Company’s stock was less than the exercise price of the outstanding stock award.
Options to purchase approximately 45,000 shares of common stock with a weighted average exercise price of $11.91, were outstanding at December 31, 2022 and were not included in the computation of common stock equivalents for the year ended December 31, 2022 because their exercise prices were higher than the average fair market value of the common stock during the reporting period.
Options to purchase approximately 22,000 shares of common stock with a weighted average exercise price of $12.64, were outstanding at December 31, 2021 and were not included in the computation of common stock equivalents for the year ended December 31, 2021 because their exercise prices were higher than the average fair market value of the common stock during the reporting period. For the year ended December 31, 2021, all stock awards were anti-dilutive for the period due to the net loss.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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