Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2022

Net Income (Loss) Per Common Share

Net Loss Per Common Share

9. Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding in addition to the potential impact of dilutive securities including restricted stock units, warrants, and options. In periods with a net loss, potentially dilutive securities are excluded from our calculation of earning per share as their inclusion would have an antidilutive effect.

The following tables set forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts):

Basic EPS

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	1,671	$	256	$	3,606	$	(204)
Denominator:
Weighted-average shares of common stock outstanding, basic		20,069,444		19,313,162		19,983,526		19,203,374
Net income (loss) per common share, basic	$	0.08	$	0.01	$	0.18	$	(0.01)

Diluted EPS

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	1,671	$	256	$	3,606	$	(204)
Less: warrant liability fair value gain recognized		(11)		—		(21)		—
Net income (loss) attributable to common stockholders, diluted		1,660		256	$	3,585	$	(204)
Denominator:
Weighted-average shares of common stock outstanding, basic		20,069,444		19,313,162		19,983,526		19,203,374
Dilutive effect of stock options and RSUs		354,839		412,902		643,021		—
Weighted-average shares of common stock outstanding, diluted		20,424,283		19,726,064		20,626,547		19,203,374
Net income (loss) per common share, diluted	$	0.08	$	0.01	$	0.17	$	(0.01)

Potentially dilutive securities representing 2.0 million and 1.2 million stock options and RSUs that were outstanding during the three-months ended of June 30, 2022, and 2021, respectively, and 0.6 million and 1.9 million stock options and RSUs outstanding during the six months ended June 30, 2022 and 2021, respectively, were excluded from the computation of diluted earnings per common share during these periods as their inclusion would have an antidilutive effect.