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, 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 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 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 March 31,
	2017		2016
Numerator—basic and diluted:
Net income	$	5,932	$	2,521

Denominator:
Weighted-average common shares - basic common stock		20,489,532		19,827,669
Weighted-average common shares - diluted common stock		21,579,721		20,840,367

Net income per share - basic common stock	$	0.29	$	0.13
Net income per share - diluted common stock	$	0.27	$	0.12

Denominator calculation from basic to diluted:
Weighted-average common shares - basic common stock		20,489,532		19,827,669
Stock options		1,090,189		1,012,698
Weighted-average common shares - diluted common stock		21,579,721		20,840,367
Shares excluded from diluted weighted-average shares:
Stock options		25,700		773,033
Shares excluded from diluted weighted-average shares		25,700		773,033

The computations of diluted net income attributable to common stockholders excluded common stock options which were anti-dilutive for the three months ended March 31, 2017 and March 31, 2016, respectively.