Net Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2020

13. Net Income (Loss) per Common Share

Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders during the period by the weighted average number of common shares outstanding during that period. Diluted net income (loss) per common share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock or the if-converted method of accounting.

The calculations for basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2020 are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Basic net income (loss) per common share:
Numerator:
Net income (loss)	$	389		$	1,069		$	(4,407	)	$	670
Less: Accretion of Series B preferred stock dividends		(275	)		(262	)		(818	)		(780	)
Net income (loss) available to common stockholders	$	114		$	807		$	(5,225	)	$	(110	)

Denominator:
Weighted average common shares outstanding - basic		18,144			17,006			17,868			16,933
Net income (loss) per common share - basic	$	0.01		$	0.05		$	(0.29	)	$	(0.01	)

Diluted net income (loss) per common share:
Numerator:
Net income (loss) available to common stockholders	$	114		$	807		$	(5,225	)	$	(110	)
Plus: Accretion of Series B preferred stock dividends, if dilutive		—			—			—			—
Net income (loss) available to common stockholders	$	114		$	807		$	(5,225	)	$	(110	)

Denominator:
Weighted average common shares outstanding - basic		18,144			17,006			17,868			16,933
Dilutive securities:
Stock options, RSUs, and Warrants		506			760			—			—
Weighted average common shares outstanding - diluted		18,650			17,766			17,868			16,933
Net income (loss) per common share - diluted	$	0.01		$	0.05		$	(0.29	)	$	(0.01	)

The following common stock equivalents have been excluded from diluted net income (loss) per common share for the three and nine months ended September 30, 2020 and 2019 because their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Shares of common stock subject to outstanding RSUs		—		—		906		1,214
Shares of common stock subject to outstanding stock options		102		131		553		576
Shares of common stock subject to outstanding warrants		—		—		315		620
Shares of common stock issuable upon conversion of Series B convertible preferred stock		5,673		5,403		5,673		5,403
Total		5,775		5,534		7,447		7,813