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Basic and Diluted Net Income Per Share

9 Months Ended

Sep. 30, 2020

Per share - net income attributable to Where Food Comes From, Inc.:

Basic and Diluted Net Income Per Share

Note 3 – Basic and Diluted Net Income per Share

Basic net income per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and restricted stock awards are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

The following is a reconciliation of the share data used in the basic and diluted income per share computations (amounts in thousands):

		Three months ended September 30,								Nine months ended September 30,
		2020				2019				2020				2019
Basic:
Weighted average shares outstanding			24,745				24,792				24,857				24,879

Diluted:
Weighted average shares outstanding			24,745				24,792				24,857				24,879
Weighted average effects of dilutive securities			149				180				154				183
Total			24,894				24,972				25,011				25,062

Antidilutive securities:			286				283				286				283