| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A
summary of the significant accounting policies consistently applied in the preparation of the consolidated financial statements are as
follows: Principles
of Consolidation The
consolidated financial statements include the accounts of Vaso Corporation, its wholly-owned subsidiaries, and the accounts of the companies
over which we exercise control. Significant intercompany balances and transactions have been eliminated. Use
of Estimates The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated
financial statements and accompanying notes. Significant estimates and assumptions relate to estimates of commission adjustments due
to order cancellations, collectability of accounts receivable, the realizability of deferred tax assets, stock-based compensation, values
and lives assigned to acquired intangible assets, fair value of reporting units in connection with goodwill impairment test, the adequacy
of inventory reserves, variable consideration, and allocation of contract transaction price to performance obligations. Actual results
could differ from those estimates. Revenue
Recognition In
May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the standard, revenue is recognized when
a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in
exchange for those goods or services. ASU 2014-09 replaced most existing revenue recognition guidance in U.S. GAAP. The new standard
introduces a five-step process to be followed in determining the amount and timing of revenue recognition. It also provides guidance
on accounting for costs incurred to obtain or fulfill contracts with customers, and establishes disclosure requirements which are more
extensive than those required under prior U.S. GAAP. Generally, we recognize revenue under Topic 606 for each of our performance obligations
either over time (generally, the transfer of a service) or at a point in time (generally, the transfer of a good) as follows:
● VasoTechnology Revenue relating to
recurring managed network and voice services provided by NetWolves, for which the customer has unlimited access to such services throughout
the contract term, are thus recognized as provided on a monthly basis (“over time”). Non-recurring charges related to the
provision of such services are recognized in the period provided (“point in time”). In the IT VAR business, software system
installations are recognized upon verification of installation and expiration of an acceptance period (“point in time”). Monthly
post-implementation customer support – a stand-ready obligation of the Company to provide maintenance services if and when needed
- provided under such installations, as well as software solutions offered under a monthly Software as a Service (“SaaS”)
fee basis, for which the customer has unlimited access to such services throughout the contract term, are thus recognized monthly over
the contract term (“over time”).
● VasoHealthcare Commission
revenue is recognized when the underlying equipment has been delivered by GEHC and accepted at the customer site in accordance with the
terms of the specific sales agreement (“point in time”).
● VasoMedical In the United States,
we recognized revenue from the sale of our medical equipment in the period in which we deliver the product to the customer (“point
in time”). Revenue from the sale of our medical equipment to international markets is recognized upon shipment of the product to
a common carrier, as are supplies, accessories and spare parts delivered in both domestic and international markets (“point in
time”). Revenue from the provision of ARCS ® Disaggregation
of Revenue The
following tables present revenues disaggregated by our business operations and timing of revenue recognition:
(in thousands)
Year Ended December 31, 2023 Year Ended December 31, 2022
Professional sales Professional sales
IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total
Network services $ 35,673 $ - $ - $ 35,673 $ 35,833 $ - $ - $ 35,833
Software sales and support 4,698 - - 4,698 4,267 - - 4,267
Commissions - 37,820 - 37,820 - 36,621 - 36,621
Medical equipment sales - - 2,708 2,708 - - 2,450 2,450
Medical equipment service - - 125 125 - - 123 123
$ 40,371 $ 37,820 $ 2,833 $ 81,024 $ 40,100 $ 36,621 $ 2,573 $ 79,294
Year Ended December 31, 2023 Year Ended December 31, 2022
Professional sales Professional sales
IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total
Revenue recognized over time $ 37,223 $ - $ 600 $ 37,823 $ 37,089 $ - $ 325 $ 37,414
Revenue recognized at a point in time 3,148 37,820 2,233 43,201 3,011 36,621 2,248 41,880
$ 40,371 $ 37,820 $ 2,833 $ 81,024 $ 40,100 $ 36,621 $ 2,573 $ 79,294 Transaction
Price Allocated to Remaining Performance Obligations As
of December 31, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially
unsatisfied) for executed contracts approximates $95 million, of which we expect to recognize revenue as follows:
(in thousands)
Fiscal years of revenue recognition
2024 2025 2026 Thereafter
Unfulfilled performance obligations $ 44,667 $ 19,861 $ 6,240 $ 23,918 As
of December 31, 2022, the aggregate amount of transaction price allocated to performance obligations that were unsatisfied (or partially
unsatisfied) for executed contracts approximated $91 million. Contract
Balances Contract
receivables include trade receivables, net and long-term receivables (recorded in Other assets in the consolidated balance sheets). Contract
liabilities arise in our IT, VasoHealthcare, and VasoMedical businesses. In our VHC IT business, payment arrangements with clients typically
include an initial payment due upon contract signing and milestone-based payments based upon product delivery and go-live, as well as
post go-live monthly payments for subscription and support fees. Customer payments received, or receivables recorded, in advance of go-live
and customer acceptance, where applicable, are deferred as contract liabilities. Such amounts aggregated approximately $419,000 and $481,000
at December 31, 2023 and 2022, respectively, and are included in accrued expenses and other liabilities in our consolidated balance sheets. In
our VasoHealthcare business, we bill a portion of commissions on the orders we booked in advance of delivery of the underlying equipment.
Such amounts aggregated approximately $32,194,000 and $30,794,000 at December 31, 2023 and 2022, respectively, and are classified in
our consolidated balance sheets into current or long-term deferred revenue net of estimated commission adjustments. In addition, we record
a contract liability for amounts expected to be credited back to GEHC due to customer order reductions. Such amounts aggregated approximately
$971,000 and $2,577,000 at December 31, 2023 and 2022, respectively, and are included in accrued expenses and other liabilities in our
consolidated balance sheets. In
our VasoMedical business, we bill amounts for post-delivery services and varying duration service contracts in advance of performance.
Such amounts aggregated approximately $6,000 and $9,000 at December 31, 2023 and 2022, respectively, and are classified in our consolidated
balance sheets as either current or long-term deferred revenue. The
following table summarizes the Company’s contract receivable and contract liability balances :
(in thousands)
2023 2022
Contract receivables - January 1 15,306 15,474
Contract receivables - December 31 13,398 15,306
Increase (decrease) (1,909 ) (168 )
Contract liabilities - January 1 33,861 26,890
Contract liabilities - December 31 33,589 33,861
Increase (decrease) (272 ) 6,971 The
decrease in contract receivables and liabilities in 2023 is due primarily to increased estimate of allowance for commission adjustments
in our VasoHealthcare business. During the years ended December 31, 2023 and 2022, we recognized approximately $9.2 million and $9.1
million, respectively, of revenues that were included in our contract liability balance at the beginning of such periods. Costs
to Obtain or Fulfill a Contract Topic
606 requires that incremental costs of obtaining a contract are recognized as an asset and amortized to expense in a pattern that matches
the timing of the revenue recognition of the related contract. We have determined the only significant incremental costs incurred to
obtain contracts with customers within the scope of Topic 606 are certain sales commissions paid to associates. In addition, the Company
elected the practical expedient to recognize the incremental costs of obtaining a contract when incurred for contracts where the amortization
period for the asset the Company would otherwise have recognized is one year or less. Under
Topic 606, sales commissions applicable to service contracts exceeding one year have been capitalized and amortized ratably over the
term of the contract. In our VHC IT business, commissions allocable to multi-year subscription contracts or multi-year post-contract
support performance obligations are amortized to expense ratably over the terms of the multi-year periods. VHC IT commissions allocable
to other elements are charged to expense at go-live or customer acceptance. In our professional sales services segment, commissions paid
to our sales force are deferred until the underlying equipment is accepted by the customer. We recognized approximately $2,561,000 and
$2,732,000 of amortization related to these sales commission assets in “Cost of professional sales services” in 2023 and
2022, respectively, and approximately $75,000 and $79,000 of amortization in “Selling, general and administrative” expense
in 2023 and 2022, respectively, in our consolidated statements of operations and comprehensive income. At
December 31, 2023 and 2022, our consolidated balance sheets include approximately $7,106,000 and $7,113,000, respectively, in capitalized
sales commissions - primarily in our professional sales services segment - to be expensed in future periods, of which $3,285,000 and
$3,249,000, respectively, is recorded in deferred commission expense and $3,821,000 and $3,864,000, respectively, representing the long-term
portion, is included in other assets. Significant
Judgments when Applying Topic 606 Contract
transaction price is allocated to performance obligations using estimated stand-alone selling price. Judgment is required in estimating
stand-alone selling price for each distinct performance obligation. We determine stand-alone selling price maximizing observable inputs
such as stand-alone sales when they exist or substantive renewal price charged to clients. In instances where stand-alone selling price
is not observable, we utilize an estimate of stand-alone selling price based on historical pricing and industry practices. Certain
revenue we record in our professional sales service segment contains an estimate for variable consideration. Due to the tiered structure
of our commission rate, which increases as annual targets are achieved, under Topic 606 we record revenue and deferred revenue at the
rate we expect to be achieved by year end. We base our estimate of variable consideration on historical results of previous years’
achievement under the GEHC agreement. Such estimate is reviewed each quarter and adjusted as necessary. In addition, the Company records
commissions for arranging financing at an estimated rate which is subject to later revision based on certain factors. The Company recognized
increases (decreases) in revenue associated with revisions to variable consideration for previously completed performance obligations
of $3,000 and $(5,000) for the years ended December 31, 2023 and 2022 respectively. The
Company also records commission adjustments to contract liabilities in its professional sales service segment based on estimates of future
order cancellations. Such cancellations also result in adjustments to the related capitalized cost to obtain or fulfill a contract. Shipping
and Handling Costs All
shipping and handling expenses are charged to cost of sales. Amounts billed to customers related to shipping and handling costs are included
as a component of sales. Research
and Development Research
and development costs attributable to development are expensed as incurred. Share-Based
Compensation The
Company complies with ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”), which requires all
companies to recognize the cost of services received in exchange for equity instruments to be recognized in the financial statements
based on their grant date fair values. The Company applies an estimated forfeiture rate to the grant date fair value to determine the
annual compensation cost of share-based payment arrangements with employees. The forfeiture rate is estimated based primarily on job
title and prior forfeiture experience. The Company did not grant any awards to non-employees during the years ended December 31, 2023
and 2022. During
the year ended December 31, 2023, the Company granted 225,000 restricted shares of common stock valued at $50,000 to employees. The shares
vest over five years from the grant date. The total fair value of shares vested during the year ended December 31, 2023 was $27,000 for
officers and $24,000 for employees. The weighted average grant date fair value of shares granted during the year ended December 31, 2023
was $0.22 per share, based on the closing price as of the grant date. During
the year ended December 31, 2022, the Company granted 1,050,000 restricted shares of common stock valued at $115,000 to employees. The
shares vest over three and five years from the grant date. The total fair value of shares vested during the year ended December 31, 2022
was $23,000 for officers and $4,000 for employees. The weighted average grant date fair value of shares granted during the year ended
December 31, 2022 was $0.11 per share, based on the closing price as of the grant date. The
Company did not grant any stock options during the years ended December 31, 2023 or 2022, nor were any options exercised during such
periods. No options were outstanding at December 31, 2023 or 2022. Share-based
compensation expense recognized for the years ended December 31, 2023 and 2022 was $48,000 and $35,000, respectively, and is recorded
in selling, general, and administrative expense in the consolidated statements of operations and comprehensive income. Unrecognized expense
related to existing share-based compensation and arrangements is approximately $114,000 at December 31, 2023 and will be recognized over
a weighted-average period of approximately 46 months. Cash
and Cash Equivalents Cash
and cash equivalents represent cash and short-term, highly liquid investments either in certificates of deposit, treasury bills, money
market funds, or investment grade commercial paper issued by major corporations and financial institutions that generally have maturities
of three months or less from the date of acquisition. Short
term investments The
Company’s short-term investments consist of six-month U.S. Treasury bills and bank deposits with yields based on underlying debt
and equity securities. The U.S. Treasury bills are classified as held-to-maturity and are carried at amortized cost of approximately
$13,555,000, including approximately $216,000 in accrued interest, at December 31, 2023. Their fair value at December 31, 2023 is approximately
$13,559,000 and the unrecognized holding gain is $4,000 for the year ended December 31, 2023. The bank deposits are carried at fair value
of approximately $424,000 at December 31, 2023 and are classified as available-for-sale. Realized gains or losses on the bank deposits
are included in net income. The Company does not expect a credit loss for its short-term investments. Financial
Instruments The
Company complies with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Under
ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit
price”) in an orderly transaction between market participants at the measurement date. In
determining fair value, the Company uses various valuation approaches. ASC 820 establishes a fair value hierarchy for inputs used in
measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most
observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability
based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about
the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The fair value hierarchy is categorized into three levels based on the inputs as follows: Level
1 Level
1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level
2 Level
2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability
such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets
with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are
observable or can be derived principally from, or corroborated by, observable market data. Level
3 Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement
of the fair value of the assets or liabilities. The
carrying amount of assets and liabilities including cash and cash equivalents, short-term investments, accounts receivable, prepaids,
accounts payable, accrued expenses and other current liabilities approximated their fair value as of December 31, 2023 and 2022, due
to the relative short maturity of these instruments. Property and equipment, intangible assets, capital lease obligations, and goodwill
are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering
events occur. If such evaluation indicates that impairment exists, the respective asset is written down to its fair value. The
following table presents information about the Company’s assets measured at fair value as of December 31, 2023 and 2022:
Quoted Prices Significant
in Active Other Significant Balance
Markets for Observable Unobservable as of
Identical Assets Inputs Inputs December 31,
(Level 1) (Level 2) (Level 3) 2023
Assets
Cash equivalents invested in money market funds and treasury bills $ 10,522 $ - $ - $ 10,522
Bank deposits (included in short term investments) 424 424
$ 10,946 $ - $ - $ 10,946
Quoted Prices Significant
in Active Other Significant Balance
Markets for Observable Unobservable as of
Identical Assets Inputs Inputs December 31,
(Level 1) (Level 2) (Level 3) 2022
Assets
Cash equivalents invested in money market funds $ 7,934 $ - $ - $ 7,934
Bank deposits (included in short term investments) 433 433
$ 8,367 $ - $ - $ 8,367 Accounts
Receivable, net The
Company’s accounts receivable are due from customers to whom we sell our products and services, distributors engaged in the distribution
of our products and from GEHC. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral
is not required. Accounts receivable are generally due 30 to 90 days from shipment and services provided and are stated at amounts due
from customers net of allowances for doubtful accounts, returns, term discounts and other allowances. Accounts that are outstanding longer
than the contractual payment terms are considered past due. Estimates are used in determining the allowance for doubtful accounts based
on the Company’s historical collections experience, current trends, credit policy and a percentage of its accounts receivable by
aging category. In determining these percentages, the Company reviews historical write-offs of their receivables. The Company also looks
at the credit quality of their customer base as well as changes in their credit policies. The Company continuously monitors collections
and payments from our customers, and writes off receivables when all efforts at collection have been exhausted. While credit losses have
historically been within expectations and the provisions established, the Company cannot guarantee that it will continue to experience
the same credit loss rates that they have in the past. The
changes in the Company’s allowance for doubtful accounts and commission adjustments are as follows:
(in thousands)
Year ended December 31,
2023 2022
Beginning Balance $ 6,947 $ 5,804
Provision for losses on accounts receivable 66 63
Direct write-offs, net of recoveries (60 ) (159 )
Commission adjustments 2,755 1,239
Ending Balance $ 9,708 $ 6,947 Concentrations
of Credit Risk We
market our equipment and IT software solutions principally to hospitals, diagnostic imaging centers and physician private practices.
We perform credit evaluations of our customers’ financial condition and, as a result, believe that our receivable credit risk exposure
is limited. For the years ended December 31, 2023 and 2022, no customer in our equipment or IT segment accounted for 10% or more of revenues
or accounts receivable. In our professional sales service segment, 100% of our revenues and accounts receivable are with GEHC; however,
we believe this risk is acceptable based on GEHC’s financial position and our long history of doing business with GEHC. The
Company maintains cash balances in certain U.S. financial institutions which exceed the Federal Depository Insurance Corporation (“FDIC”)
coverage of $250,000 by approximately $10,054,000. The Company has not experienced any losses on these accounts and believes it
is not subject to any significant credit risk on these accounts. In addition, the FDIC does not insure the Company’s foreign bank
balances, which aggregated approximately $467,000 and $1,234,000 at December 31, 2023 and 2022, respectively. Inventories The
Company values inventories in the equipment segment at the lower of cost or net realizable value, with cost being determined on a first-in,
first-out basis. The Company regularly reviews inventory quantities on hand, particularly raw materials and components, and records a
provision for excess and slow moving inventory based primarily on existing and anticipated design and engineering changes to its products
as well as forecasts of future product demand. In
our IT Segment, we purchase computer hardware and software for specific customer requirements and value such inventories using the specific
identification method. Property
and Equipment Property
and equipment, including assets under finance leases, are stated at cost less accumulated depreciation and amortization. Major improvements
are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. Upon retirement or disposal of assets,
the cost and related accumulated depreciation are removed from the consolidated balance sheets. Depreciation is expensed over the estimated
useful lives of the assets, which range from two to eight years, on a straight-line basis. Accelerated methods of depreciation are used
for tax purposes. We amortize leasehold improvements over the useful life of the related leasehold improvement or the life of the related
lease, whichever is less. Impairment
of Long-lived Assets The
Company reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances
indicate that the carrying amount of a long-lived asset might not be recoverable. If required, the Company compares the estimated fair
value determined by either the undiscounted future net cash flows or appraised value to the related asset’s carrying value to determine
whether there has been an impairment. If an asset is considered impaired, the asset is written down to fair value, which is based either
on discounted cash flows or appraised values in the period the impairment becomes known. No Goodwill
and Intangible Assets Goodwill represents the excess
of cost over the fair value of net assets of businesses acquired. The Company accounts for goodwill under the guidance of the ASC Topic
350, “Intangibles: Goodwill and Other”. Goodwill acquired in a purchase business combination and determined to have an indefinite
useful life is not amortized, but instead tested for impairment, at least annually, in accordance with this guidance. The recoverability
of goodwill is subject to an annual impairment test or whenever an event occurs or circumstances change that would more likely than not
result in an impairment. The impairment test is based on the estimated fair value of the underlying businesses and performed in the fourth
quarter of each year. We perform either a quantitative
or qualitative assessment to assess if the fair value of the respective reporting unit exceeds its carrying value. The qualitative goodwill
impairment assessment requires evaluating factors to determine whether it is more likely than not that the fair value of a reporting unit
is less than its carrying amount. As part of our goodwill qualitative assessment process for our two applicable reporting units, when
utilized, we evaluate various factors that are specific to the reporting unit as well as industry and macroeconomic factors in order to
determine whether it is reasonably likely to have a material impact on the fair value of our reporting units. Examples of the factors
that are considered include the results of the most recent impairment test, current forecasts, and changes in the strategic outlook or
organizational structure of the reporting units. The financial forecasts of the reporting units are compared to the forecasts used in
the prior year analysis to determine if management expectations for the business have changed. When performing the quantitative
assessment to calculate the fair value of a reporting unit, we consider both comparative market multiples as well as estimated discounted
cash flows for the reporting unit. The significant estimates and assumptions include, but are not limited to, revenue growth rates, operating
margins, and future economic and market conditions. The discount rates are based upon industry weighted average cost of capital ranges.
As a supplement, we conduct additional sensitivity analysis to assess the risk for potential impairment based upon changes in the key
assumptions such as the discount rate, expected long-term growth rate, and cash flow projections. Based upon the completion of our annual
test as of December 31, 2023 and 2022, we determined that there was no impairment of goodwill and that the applicable reporting units’
estimated fair values were substantially in excess of their carrying amounts. Intangible
assets consist of the value of customer contracts and relationships, patent and technology costs, and software. The cost of significant
customer-related intangibles is amortized in proportion to estimated total related revenue; cost of other intangible assets is generally
amortized on a straight-line basis over the asset’s estimated economic life, which range from five to ten years.
The Company capitalizes internal use software development costs incurred during the application development stage. Costs related to preliminary
project activities, training, data conversion, and post implementation activities are expensed as incurred. The Company capitalized $253,000
and $0 in software development costs for the years ended December 31, 2023 and 2022, respectively. No Deferred
Revenue Amounts
billable under the agreement with GEHC in advance of delivery of the underlying equipment are recorded initially as deferred revenue,
and commission revenue is subsequently recognized as customer acceptance of such equipment is reported to us by GEHC. Similarly, commissions
payable to our sales force related to such billings are recorded as deferred commission expense when the associated deferred revenue
is recorded. Commission expense is recognized when the corresponding commission revenue is recognized. In
our equipment segment, we record revenue on extended service contracts ratably over the term of the related service contracts. Income
Taxes Deferred
income taxes are recognized for temporary differences between financial statement and income tax bases of assets and liabilities and
loss carry-forwards for which income tax benefits are expected to be realized in future years. A valuation allowance is established,
when necessary, to reduce deferred tax assets to the amount expected to be realized. In estimating future tax consequences, we generally
consider all expected future events other than an enactment of changes in the tax laws or rates. Deferred tax assets are continually
evaluated for the expected realization. To the extent our judgment regarding the realization of the deferred tax assets changes, an adjustment
to the allowance is recorded, with an offsetting increase or decrease, as appropriate, in income tax expense. Such adjustments are recorded
in the period in which our estimate as to the realization of the assets changed that it is “more likely than not” that all
of the deferred tax assets will be realized. The “realization” standard is subjective and is based upon our estimate of a
greater than 50% probability that the deferred tax asset can be realized. The
Company also complies with the provisions of ASC Topic 740, “Income Taxes”, which prescribes a recognition threshold and
a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax
return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by the relevant
taxing authority based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit that has a greater
than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. Derecognition of a tax benefit
previously recognized results in the Company recording a tax liability that reduces ending retained earnings. Based on its analysis,
the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2023 and 2022. The
Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No Foreign
Currency Translation Gain (Loss) and Comprehensive Income In
the country in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated
using published exchange rates in effect at the consolidated balance sheet date. Equity accounts are translated at historical
rates except for the changes in accumulated deficit during the year as the result of the income statement translation process. Revenues
and expenses and cash flows are translated using a weighted average exchange rate for the period. Resulting translation adjustments
are recorded as a component of accumulated other comprehensive income (loss) on the accompanying consolidated balance sheets. For
the years ended December 31, 2023 and 2022, other comprehensive income includes losses of $71,000 and $343,000, respectively, which were
entirely from foreign currency translation loss. Net
Income Per Common Share Basic
income per common share is based on the weighted average number of common shares outstanding, including vested restricted shares, without
consideration of potential common stock. Diluted earnings per common share is based on the weighted average number of common and potential
dilutive common shares outstanding. Diluted
earnings per share were computed based on the weighted average number of shares outstanding plus all potentially dilutive common shares.
A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:
(in thousands)
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