EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

7. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings (loss) per share by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, shares to be purchased under our Employee Stock Purchase Plan (“ESPP”), unvested restricted stock awards, and stock purchase warrants, using the treasury stock method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.

Our unvested restricted shares and Series A convertible preferred stock shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings (loss) per share excludes from the numerator net income (but not net loss) attributable to the unvested restricted shares and the common shares assumed converted from the preferred shares and excludes the impact of those shares from the denominator.

Earnings (loss) per share for the three and nine months ended September 30, 2022 and 2021 are calculated for basic and diluted earnings (loss) per share as follows:

	Basic				Diluted				Basic				Diluted
(in thousands, except per share amounts)	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021		2022		2021		2022		2021
Net loss	$	(8,600)	$	(4,447)	$	(8,600)	$	(4,447)	$	(43,653)	$	(18,467)	$	(43,653)	$	(18,467)
Net income allocated to participating securities		—		—		—		—		—		—		—		—
Dividends on Series A convertible preferred stock		(406)		—		(406)		—		(1,218)		—		(1,218)		—
Net loss available to common shareholders	$	(9,006)	$	(4,447)	$	(9,006)	$	(4,447)	$	(44,871)	$	(18,467)	$	(44,871)	$	(18,467)
Basic Weighted-Average Shares Outstanding		16,303		12,107		16,303		12,107		16,238		12,066		16,238		12,066
Dilutive effect of stock options and ESPP						—		—						—		—
Diluted Weighted-Average Shares Outstanding						16,303		12,107						16,238		12,066
Loss per share	$	(0.55)	$	(0.37)	$	(0.55)	$	(0.37)	$	(2.76)	$	(1.53)	$	(2.76)	$	(1.53)

The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings (loss) per share, was 2.7 million and 1.6 million for the three months ended September 30, 2022 and 2021 and was 2.7 million and 1.7 million for the nine months ended September 30, 2022 and 2021, respectively. For the three and nine months ended September 30, 2022 and 2021, all potentially dilutive shares were anti-dilutive and excluded from the calculation of diluted loss per share because we recognized a net loss.