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Basic and Diluted Net Income per Share
 12 Months Ended
Dec. 31, 2021
Per share - net income  
Basic and Diluted Net Income per Share

Note 13 - 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 plus unrecognized stock-based compensation obtained thereby were used by the Company 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 (all share amounts have been adjusted to reflect the 1-for-4 reverse split that occurred in December 2020):

 

    Year ended December 31,  
(in thousands)   2021     2020  
Basic:                
Weighted average shares outstanding     6,098       6,162  
                 
Diluted:                
Weighted average shares outstanding     6,098       6,162  
Weighted average effects of dilutive securities     87       59  
Total     6,185       6,221  
                 
Antidilutive securities:     17       50  

 

The effect of the inclusion of the antidilutive shares would have resulted in an increase in earnings per share. Accordingly, the weighted average shares outstanding have not been adjusted for antidilutive shares.

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements