Net Income (Loss) Per Share

3 Months Ended

Mar. 29, 2022

5. NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Potentially dilutive shares are excluded from the computation of diluted net (loss) per share since they have an anti-dilutive effect, yet potentially dilutive shares are included in the computation of diluted net income per share. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants exercised their right to convert these instruments into common stock and the restrictions on restricted stock units (“RSUs”) lapse. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are antidilutive. Once these performance-based RSUs vest, they are included in our basic net income (loss) per share calculation.

The following table presents a reconciliation of basic and diluted net income (loss) per share, including the number of dilutive equity awards that were included in the dilutive net income (loss) per share computation (in thousands):

	For the Thirteen Weeks Ended
	March 29, 2022		March 30, 2021
Numerator:
Net income (loss)	$	1,460	$	(3,141	)
Denominator:
Weighted-average shares outstanding – basic		23,377		22,926
Dilutive effect of equity awards		339		—
Weighted-average shares outstanding – diluted		23,716		22,926

Net income (loss) per share:
Basic	$	0.06	$	(0.14	)
Diluted	$	0.06	$	(0.14	)

For the thirteen weeks ended March 29, 2022 and March 30, 2021, there were approximately 1.1 million and 0.5 million shares of equity awards, respectively, that were excluded from the calculation of diluted net income (loss) per share because they are anti-dilutive.