Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2022

(11) Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net income (loss) per share gives effect to common stock equivalents; however, potential common stock equivalents are excluded if their effect is antidilutive. Potential common stock equivalents are composed of incremental shares of common stock issuable upon the exercise of stock options and the vesting of restricted stock units. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same.

The following table is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation (in thousands, except per share data) for the three and six months ended June 30, 2022, and 2021:


	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
Net income (loss)	$	(6,028	)	$	(3,279	)	$	(9,076	)	$	(26,504	)
Weighted average number of shares outstanding:
Basic		27,657			26,982			27,593			26,120
Effect of dilutive securities:
Stock options, restricted stock units and share awards		—			—			—			—
Diluted		27,657			26,982			27,593			26,120
Net income (loss) per share:
Basic	$	(0.22	)	$	(0.12	)	$	(0.33	)	$	(1.01	)
Diluted	$	(0.22	)	$	(0.12	)	$	(0.33	)	$	(1.01	)

The following table sets forth potential common stock that is not included in the diluted net income (loss) per share calculation above because their effect would be anti-dilutive for the periods indicated (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2022		2021			2022	2021
Outstanding stock options		948		703		943	673
Unvested restricted stock units		214		228		236	212