Net Income Per Common Share

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
	2023		2022		2023		2022

Basic weighted average common shares outstanding		27,191,648		31,652,413		27,109,054		31,550,911
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		355,999		566,969		299,078		468,500
Common stock issuable upon the exercise of stock options and SARs		—		1,656		—		12,889
Dilutive weighted average common shares outstanding		27,547,647		32,221,038		27,408,132		32,032,300

Approximately 5 thousand shares and 3 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and six months ended June 30, 2023, respectively, as compared to 3 thousand shares and 2 thousand shares for the quarter and six months ended July 1, 2022, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share.