Note 11 - Net Income Per Share

12 Months Ended

Dec. 31, 2019

(

)

Net Income Per Share

Basic income per share is based upon the weighted average common shares outstanding during each year. Diluted income per share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during each year. The weighted average number of shares used to compute both basic and diluted income per share consisted of the following (in thousands):

	Years Ended December 31,
	2019		2018		2017
Basic weighted average common shares outstanding during the year		7,424		7,347		7,248
Weighted average common equivalent shares due to stock options and restricted stock units		92		83		89
Diluted weighted average common shares outstanding during the year		7,516		7,430		7,337

The computation of diluted earnings 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 options during the period. These outstanding stock awards are

not

included in the computation of diluted earnings per share because the effect would have been antidilutive.

For the years ended

December 31, 2019,

2018

and

2017,

the number of stock awards excluded from the computation was

16,536,

10,344

and

27,336,

respectively.