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Basic and Diluted Net Income per Share

9 Months Ended

Sep. 30, 2022

Per share - net income:

Basic and Diluted Net Income per Share

Note 2 – 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):

			2022				2021				2022				2021
		Three months ended September 30,								Nine months ended September 30,
		2022				2021				2022				2021
Basic:
Weighted average shares outstanding			5,936				6,094				6,019				6,146

Diluted:
Weighted average shares outstanding			5,936				6,094				6,019				6,146
Weighted average effects of dilutive securities			80				63				82				61
Total			6,016				6,157				6,101				6,207

Antidilutive securities:			17				17				17				17

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

(Unaudited)