Note 9 - NET LOSS PER SHARE

9 Months Ended

Sep. 30, 2022

NET LOSS PER SHARE

9. NET INCOME (LOSS) PER SHARE

9. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands except per share amount):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	1,385	$	(2,407)	$	(3,912)	$	(14,488)
Denominator:
Basic weighted-average shares outstanding		37,226		37,221		37,285		37,067
Effect of dilutive options and restricted stock units		828		—		—		—
Diluted weighted-average shares outstanding		38,054		37,221		37,285		37,067
Net income (loss) per share – Basic	$	0.04	$	(0.06)	$	(0.10)	$	(0.39)
Net income (loss) per share – Diluted	$	0.04	$	(0.06)	$	(0.10)	$	(0.39)

For the nine months ended September 30, 2022 and for the three and nine months ended 2021, because the Company was in a loss position, basic net loss per share is the same as diluted net loss per share as the inclusion of the potential common shares would have been anti-dilutive.

The following table sets forth potential shares of common stock that were not included in the diluted net income (loss) per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Outstanding options	—	128	63	182
Nonvested restricted stock units	62	915	784	997
Employee Stock Purchase Plan	—	30	75	14
Total	62	1,073	922	1,193