Earnings per share ("EPS")

6 Months Ended

Jun. 30, 2020

16. Earnings per share (“EPS”)

The Company uses the two-class method of computing basic EPS due to the existence of non-vested restricted stock awards with nonforfeitable rights to dividends or dividend equivalents (referred to as participating securities). For the three and six months ended June 30, 2020 and 2019, no significant adjustments were made to net income for purposes of calculating basic and diluted EPS.

The following is a reconciliation of the weighted average shares used in diluted EPS computations.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Weighted average common shares-basic		19,215,392		18,834,886		19,149,523		18,790,612
Effect of dilutive securities
Unexercised stock options and stock purchase plan		—		—		57,249		259,967
Unvested restricted stock awards and units		—		—		64,695		128,478
Weighted average common shares-diluted		19,215,392		18,834,886		19,271,467		19,179,057

There were 2,141,086 and 1,987,907 weighted average outstanding stock options and restricted stock awards and units not included in the diluted EPS computation for the three months ended June 30, 2020 and 2019, respectively, and 1,406,046 and 483,731 weighted average outstanding stock options and restricted stock awards and units not included in the diluted EPS computation for the six months ended June 30, 2020, and 2019, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based restricted stock awards and units, all necessary conditions had not been satisfied by the end of the respective period.