NOTE 16 – EARNINGS PER SHARE

Basic earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding for the period plus dilutive potential common shares, including performance share awards, using the treasury stock method. Performance share awards are included based on the number of shares that would be issued as if the end of the reporting period was the end of the performance period and the result was dilutive.

The following table sets forth the computation of the Company’s basic and diluted net earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands except share and per share data):


	Three months ended June 30,					Six months ended June 30,
	2025			2024		2025			2024
Numerator:
Net income (loss)	$	(2,407	)	$	365	$	(4,076	)	$	3,492
Denominator
Weighted-average common shares used in computing earnings per share — basic		35,573,749			29,816,202		35,583,139			29,792,385
Weighted-average effect of potentially dilutive securities:
Effect of potentially dilutive time-based stock options		—			873,348		—			436,674
Effect of potentially dilutive performance-based stock options		—			164,132		—			82,066
Effect of potentially dilutive restricted stock units		—			19,754		—			9,877
Weighted-average common shares outstanding — diluted		35,573,749			30,873,436		35,583,139			30,321,002
Earnings (loss) per share — basic	$	(0.07	)	$	0.01	$	(0.11	)	$	0.12
Earnings (loss) per share — diluted	$	(0.07	)	$	0.01	$	(0.11	)	$	0.12

As of June 30, 2025, the Company’s potentially dilutive securities consisted of options to purchase common stock. Based on the amounts outstanding as of the three and six months ended June 30, 2025 and 2024, the Company excluded the following potential common shares from the computation of diluted net income per share because including them would have had an anti-dilutive effect:


	Three months ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Performance-based options outstanding		534,063		—		534,063		—
Time-based options outstanding		4,429,563		140,135		4,396,855		140,135
Time-based restricted stock units outstanding		1,052,451		—		1,052,451		—
Total		4,963,626		140,135		4,930,918		140,135