Net Income Per Common Share

3 Months Ended

Mar. 31, 2023

2. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

2. Net Income per Common Share (continued)

The following table reconciles basic and dilutive weighted average common shares:


	Quarter Ended
	March 31,		April 1,
	2023		2022

Basic weighted average common shares outstanding		27,026,460		31,449,408
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		242,157		370,033
Common stock issuable upon the exercise of stock options and SARs		—		24,122
Dilutive weighted average common shares outstanding		27,268,617		31,843,563

Approximately six hundred shares of common stock equivalents were excluded from the computations of diluted net income per common share for both the three months ended March 31, 2023, and April 1, 2022, as inclusion would have had an anti-dilutive effect on diluted net income per common share.