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

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2016		2015		2016		2015
Numerator—basic and diluted:
Net income	$	5,142	$	3,459	$	7,507	$	5,031

Denominator:
Weighted-average common shares - basic common stock		19,972,395		19,310,064		19,900,032		19,239,218
Weighted-average common shares - diluted common stock		20,925,613		20,672,414		20,860,878		20,617,342

Net income per share - basic common stock	$	0.26	$	0.18	$	0.38	$	0.26
Net income per share - diluted common stock	$	0.25	$	0.17	$	0.36	$	0.24

Denominator calculation from basic to diluted:
Weighted-average common shares - basic common stock		19,972,395		19,310,064		19,900,032		19,239,218
Warrants		—		9,663		—		9,657
Stock options		953,218		1,352,687		960,846		1,368,467
Weighted-average common shares - diluted common stock		20,925,613		20,672,414		20,860,878		20,617,342
Shares excluded from diluted weighted-average shares:
Stock options		1,019,045		582,970		1,380,382		612,970
Shares excluded from diluted weighted-average shares		1,019,045		582,970		1,380,382		612,970

The computations of diluted net income attributable to common stockholders exclude common stock options which were anti-dilutive for the three months and six months ended June 30, 2016 and June 30, 2015, respectively.