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

9 Months Ended

Sep. 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 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 September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Numerator—basic and diluted:
Net income	$	3,455	$	2,696	$	10,962	$	7,727

Denominator:
Weighted-average common shares - basic common stock		20,157,688		19,428,653		19,986,544		19,303,057
Weighted-average common shares - diluted common stock		21,100,725		20,783,550		20,924,022		20,690,499

Net income per share - basic common stock	$	0.17	$	0.14	$	0.55	$	0.40
Net income per share - diluted common stock	$	0.16	$	0.13	$	0.52	$	0.37

Denominator calculation from basic to diluted:
Weighted-average common shares - basic common stock		20,157,688		19,428,653		19,986,544		19,303,057
Warrants		—		15,122		—		15,102
Stock options		943,037		1,339,775		937,478		1,372,340
Weighted-average common shares - diluted common stock		21,100,725		20,783,550		20,924,022		20,690,499
Shares excluded from diluted weighted-average shares:
Stock options		663,175		627,688		1,284,424		629,136
Shares excluded from diluted weighted-average shares		663,175		627,688		1,284,424		629,136

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