Income (Loss) per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Income (Loss) per Common Share

Note 3. Income (Loss) per Common Share

Basic loss per common share is computed by dividing net loss (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) for the period. Diluted loss per common share assumes that any dilutive equity instruments were exercised with outstanding common stock adjusted accordingly when the conversion of such instruments would be dilutive.

For 2021, the Company’s diluted loss per common share calculation considers the effect of 10,982,805 shares of Appgate’s common stock underlying the Convertible Senior Notes that is convertible at any time at the option of the holders of the Convertible Senior Notes prior to their maturity — see Note 11.

Weighted average shares of common stock outstanding has been retroactively restated for the equivalent number of shares received by the accounting acquirer as a result of the Merger as if these shares had been outstanding as of the beginning of the earliest period presented.

The following table summarizes the basic and diluted earnings per share calculations (in thousands, except per share amounts):

	2021			2020			2021		2020
	Continuing operations						Discontinued operations
Numerator:
Net (loss) income attributable to common stockholders – basic	$	(134,512	)	$	(51,561	)	$	60,037	$	1,136
Add: Effect of mark-to-market adjustment recognized during the period		78,497			—			—		—
Net (loss) income attributable to common stockholders – diluted	$	(56,015	)	$	(51,561	)	$	60,037	$	1,136
Denominator:
Weighted-average shares of common stock – basic		39,951,865			13,757,550			39,951,865		13,757,550
Effect from conversion of shares of common stock under the Convertible Senior Notes (Note 11)		10,982,805			—			10,982,805		—
Weighted-average shares of common stock – diluted		50,934,670			13,757,550			50,934,670		13,757,550
Basic earnings per share	$	(3.37	)	$	(3.75	)	$	1.50	$	0.08
Diluted earnings per share	$	(1.10	)	$	(3.75	)	$	1.18	$	0.08