EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2020

EARNINGS (LOSS) PER SHARE

The Company presents basic and diluted earnings (loss) per share for its common stock. Basic earnings (loss) per share is calculated by dividing the net income (loss) of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is determined by adjusting the profit or loss and the weighted average number of shares of common stock outstanding for the effects of all potentially dilutive securities.

As a result of the Merger, which has been accounted for as a reverse merger, all historical per share data and number of shares and equity awards were retroactively adjusted. The earnings (loss) is used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. The computation of diluted shares for the three months ended September 30, 2020 includes the effect of shares that would be issued in connection with warrants, stock options and restricted stock awards, as these common stock equivalents are dilutive to the earnings per share recorded in the quarter. The computation of diluted shares for the nine months ended September 30, 2020 and the three and nine months ended September 30, 2019 excludes the effect of these common stock equivalents as their inclusion would be anti-dilutive to the loss per share recorded in those periods. As of September 30, 2020 there were 2,328,120 warrants, 424,878 stock options and 600,483 restricted stock awards outstanding that were excluded from the calculation of earnings (loss) per share for the nine months ended September 30, 2020 as they would be anti-dilutive. As of September 30, 2019, there were 2,987,336 warrants, 657,846 stock options and 109,905 restricted stock awards outstanding that were excluded from the calculation of earnings (loss) per share for the three and nine months ended September 30, 2019 as they would be anti-dilutive.

The following table presents the Company’s basic earnings (loss) per share and shares outstanding (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	1,663	$	(42,794)	$	(25,915)	$	(60,109)
Denominator:
Weighted average number of common shares outstanding	184,232		162,894		179,220		149,448
Earnings (loss) per common share:
Earnings (loss) per common share, basic	$	0.01	$	(0.26)	$	(0.14)	$	(0.40)

The following table presents the Company’s diluted earnings (loss) per share and shares outstanding (in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	1,663	$	(42,794)	$	(25,915)	$	(60,109)
Denominator:
Weighted average number of common shares outstanding	184,232		162,894		179,220		149,448
Effect of dilutive securities	590		—		—		—
Weighted average number of common shares outstanding, diluted	184,822		162,894		179,220		149,448
Earnings (loss) per common share:
Earnings (loss) per common share, diluted	$	0.01	$	(0.26)	$	(0.14)	$	(0.40)