number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net effect to potentially dilutive securities. Diluted net income per share reflects the dilutive effect of potential common shares from share-based awards, warrants and convertible preferred stock. The treasury stock method is used to calculate the dilutive effect of outstanding share-based awards and warrants, which assumes the proceeds upon vesting or exercise would be used to purchase common stock at the average price participating securities. In historical periods where the Company had outstanding convertible preferred stock, net income preferred stock was convertible on a 1:1 basis to common stock. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the be the same for both Class A and Class B common stock on an individual or combined basis, and they have been combined as