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, 2017

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 restricted stock units) 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 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 the Company’s weighted-average outstanding common shares. Diluted earnings per share is calculated using the Company’s 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,
	2017		2016		2017		2016
Numerator—basic and diluted:
Net income	$	8,338	$	7,492	$	14,270	$	10,013

Denominator:
Weighted-average common shares - basic common stock		20,622,320		19,972,395		20,556,293		19,900,032
Weighted-average common shares - diluted common stock		21,848,359		20,997,429		21,731,592		20,931,802

Net income per share - basic common stock	$	0.40	$	0.38	$	0.69	$	0.50
Net income per share - diluted common stock	$	0.38	$	0.36	$	0.66	$	0.48

Denominator calculation from basic to diluted:
Weighted-average common shares - basic common stock		20,622,320		19,972,395		20,556,293		19,900,032
Stock options and other dilutive awards		1,226,039		1,025,034		1,175,299		1,031,770
Weighted-average common shares - diluted common stock		21,848,359		20,997,429		21,731,592		20,931,802
Shares excluded from diluted weighted-average shares:
Stock options		64,498		1,322,551		69,498		1,381,834
Restricted stock units		—		—		5,700		—
Shares excluded from diluted weighted-average shares		64,498		1,322,551		75,198		1,381,834

The computations of diluted net income attributable to common stockholders excluded common stock options and restricted stock units which were anti-dilutive for the three months and six months ended June 30, 2017 and June 30, 2016, respectively.