Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2021

(12) 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 nine months ended September 30, 2021 and 2020:

	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Net income (loss)	$	(5,896	)	$	(115	)	$	(32,400	)	$	(9,042	)
Weighted average number of shares outstanding:
Basic		27,201			21,592			26,484			21,532
Effect of dilutive securities:
Stock options, restricted stock units and share awards		—			—			—			—
Diluted		27,201			21,592			26,484			21,532
Net income (loss) per share:
Basic	$	(0.22	)	$	(0.01	)	$	(1.22	)	$	(0.42	)
Diluted	$	(0.22	)	$	(0.01	)	$	(1.22	)	$	(0.42	)

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 September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Outstanding stock options		389		148		651		286
Unvested restricted stock units		312		12		232		16