Net Income Per Share

3 Months Ended

Apr. 04, 2023

5. NET INCOME PER SHARE

Basic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and the restrictions on restricted stock units (“RSUs”) were to lapse. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income per share computation (in thousands):


	For the Thirteen Weeks Ended
	April 4, 2023		March 29, 2022
Numerator:
Net income	$	3,481	$	1,460
Denominator:
Weighted-average shares outstanding – basic		23,481		23,377
Dilutive effect of equity awards		445		339
Weighted-average shares outstanding – diluted		23,926		23,716

Net income per share:
Basic	$	0.15	$	0.06
Diluted	$	0.15	$	0.06

For the thirteen weeks ended April 4, 2023 and March 29, 2022, there were approximately 0.9 million and 1.1 million of equity awards, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive.