EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS PER SHARE

EARNINGS PER SHARE

12. EARNINGS PER SHARE

The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2023		2022
Basic:
Net income (loss)	$	22,811	$	(92,744)
Less: Preferred stock dividend		(1,492)		—
Less: Undistributed earnings allocable to preferred shareholders		(120)		—
Net income (loss) available to common stockholders	$	21,199	$	(92,744)
Weighted average basic number of common shares outstanding - basic		16,393		16,303
Basic net income (loss) per share of common stock	$	1.29	$	(5.69)
Diluted:
Net income (loss) available to common stockholders - basic	$	21,199	$	(92,744)
Reallocation of undistributed earnings		1		—
Net income (loss) available to common stockholders - diluted	$	21,200	$	(92,744)
Weighted average basic number of common shares outstanding - basic		16,393		16,303
Common stock equivalent shares representing shares issuable upon:
Exercise of warrants and stock options		Anti-dilutive		Anti-dilutive
Vesting of restricted stock units		142		Anti-dilutive
Weighted average diluted number of common shares outstanding - diluted		16,535		16,303
Diluted net income (loss) per share of common stock	$	1.28	$	(5.69)

We compute earnings per share in accordance with ASC Topic 260, Earnings per Share ("ASC 260"), which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the two-class method which allocates earnings for the reporting period between common shareholders and other security holders based on their respective participation rights in undistributed earnings. Diluted EPS was calculated using the two-class method, as this computation was more dilutive than the calculation using the if-converted method. For additional information on our Series A redeemable convertible preferred stock, which is considered a participating security, see Note 10.

For the three months ended March 31, 2023, common stock equivalents, including options and restricted stock units, totaling 0.5 million were anti-dilutive and not included in the computation of diluted earnings per share of common stock. For the three months ended March 31, 2022, common stock equivalents, including warrants, options and restricted stock units, totaling 7.7 million (including 6.9 million warrants which expired in October 2022) were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the Company’s net loss in that period.