Computation of Basic and Diluted Net Income (Loss) Per Common Share

6 Months Ended

Jul. 03, 2021

Computation of Basic and Diluted Net Income (Loss) Per Common Share

11. Computation of Basic and Diluted Net Income (Loss) Per Common Share

Basic and diluted net income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of RSUs and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested RSUs and awards are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive.

For the three months ended July 3, 2021 and June 27, 2020, potential shares from stock options and RSUs totaling 211,788 and 1,273,348 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the six

months ended July 3, 2021 and June 27, 2020, potential shares from stock options and RSUs totaling 1,586,374 and 1,245,966 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows:

	Three Months Ended					Six Months Ended
(in thousands except per share data)	July 3, 2021		June 27, 2020			July 3, 2021			June 27, 2020
Numerator:
Net income (loss)	$	1,393	$	(2,780	)	$	(617	)	$	(4,431	)
Denominator:
Weighted average shares of common stock (basic)		15,647		13,792			14,996			13,789
Effect of dilutive stock options		427		—			—			—
Effect of dilutive RSUs		233		—			—			—
Weighted average shares of common stock (diluted)		16,307		13,792			14,996			13,789
Per share data:
Basic net loss per share	$	0.09	$	(0.20	)	$	(0.04	)	$	(0.32	)
Diluted net loss per share	$	0.09	$	(0.20	)	$	(0.04	)	$	(0.32	)