Net (Loss) Income Per Share

9 Months Ended

Sep. 30, 2020

Net (Loss) Income per Share

Basic net income (loss) per share is computed by dividing net income (loss) applicable to common shareholders by the weighted-average number of common shares outstanding during the period. Preferred shares, outstanding common share purchase warrants, restricted stock not yet vested or released and outstanding options are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive.

A reconciliation of the numerators and denominators is as follows (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net (loss) income	$	(1,190)	$	885	$	(4,239)	$	(2,624)
Denominator:
Weighted average common shares outstanding for basic (loss) income per share	6,949,010		2,668,311		5,240,003		2,403,373
Net effect of dilutive common share equivalents	—		6,241,450		—		—
Weighted average common shares outstanding for diluted net (loss) income per share	6,949,010		8,909,761		5,240,003		2,403,373
Net (loss) income per share:
Basic	$	(0.17)	$	0.33	$	(0.81)	$	(1.09)
Diluted	$	(0.17)	$	0.10	$	(0.81)	$	(1.09)

Anti-dilutive common share equivalents excluded from the computation of diluted net (loss) income per share were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Preferred shares issued and outstanding	9,355,778	—	9,355,778	5,843,778
Common share purchase warrants	2,901,182	205,687	2,901,182	205,687
Options outstanding	101,175	6,837	101,175	6,837