Inogen, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings per Share

Earnings per Share

3 Months Ended

Mar. 31, 2016

5. Earnings per share

Earnings per share (EPS) is computed in accordance with ASC 260—Earnings per Share, and is calculated using the weighted-average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options and common stock warrants) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject to repurchase by the Company, options and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

The computation of EPS is as follows:

	Three months ended March 31,
	2016		2015
Numerator—basic and diluted:
Net income	$	2,365	$	1,572

Denominator:
Weighted-average common shares - basic common stock		19,827,669		19,167,585
Weighted-average common shares - diluted common stock		20,783,943		20,562,040

Net income per share - basic common stock	$	0.12	$	0.08
Net income per share - diluted common stock	$	0.11	$	0.08

Denominator calculation from basic to diluted:
Weighted-average common shares - basic common stock		19,827,669		19,167,585
Warrants		—		9,649
Stock options		956,274		1,384,806
Weighted-average common shares - diluted common stock		20,783,943		20,562,040
Shares excluded from diluted weighted-average shares:
Stock options		773,033		110,000
Shares excluded from diluted weighted-average shares		773,033		110,000

The computations of diluted net income attributable to common stockholders exclude common stock options which were anti-dilutive for the three months ended March 31, 2016 and March 31, 2015, respectively.