EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share, which requires earnings per share for each class of stock to be calculated using the two-class method. The holders of Series A Preferred Stock were entitled to participate in Common Stock dividends, if and when declared, on a one-to-one per-share basis. Accordingly, in prior year periods in which the Company had net income, earnings per share were computed using the two-class method whereby the pro rata dividends on Common Stock that were also distributable to the holders of Series A Preferred Stock would have been deducted from earnings applicable to common stockholders, regardless of whether a dividend is declared for such undistributed earnings. Under the two-class method, earnings for the reporting period were allocated between the holders of the Company’s Common Stock and the Series A Preferred Stock based on their respective participation rights in undistributed earnings.

Basic earnings per share of Common Stock is computed by dividing net income attributable to common stockholders by the weighted average number of shares of basic Common Stock outstanding. Net income allocated to the holders of the Company’s Series A Preferred Stock is calculated based on the stockholders’ proportionate share of the weighted average shares of Common Stock outstanding on an if-converted basis. Diluted earnings per share of Common Stock is calculated by adjusting the basic earnings per share of Common Stock for the effects of potential dilutive Common Stock shares outstanding such as stock options, restricted stock units and warrants.

For both the three and nine months ended September 30, 2022 and 2021, basic and diluted net earnings per share of Common Stock were computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the respective periods. The following tables set forth the computation of basic and diluted net income (loss) attributable to common stockholders (in thousands, except per share amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Income attributable to common stockholders:
Net income (loss)	$	(405)		$	1,931		$	2,792		$	5,162
Return on repurchase of Series A Preferred Stock shares	—			—			—			(38)
Accretion related to redemption of Series A Preferred Stock	—			(8,020)			—			(13,693)
Make-whole dividends related to redemption of Series A Preferred Stock	—			(602)			—			(2,945)
Dividends and accretion related to Series A Preferred Stock:
Cash dividends declared	—			—			—			(5,839)
PIK dividends declared	—			—			—			(1,752)
Accretion of discount	—			—			—			(2,277)
	(405)			(6,691)			2,792			(21,382)
Undistributed earnings allocated using the two-class method	—			—			—			—
Net income (loss) attributable to common stockholders	$	(405)		$	(6,691)		$	2,792		$	(21,382)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Weighted average number of shares of Common Stock outstanding	87,965			86,189			87,441			83,449
Additional shares outstanding if Series A Preferred Stock is converted to Common Stock	—			1,813			—			8,698
Total shares outstanding if Series A Preferred Stock is converted to Common Stock	87,965			88,002			87,441			92,147
Percentage of shares allocated to Series A Preferred Stock	—		%	2.1		%	—		%	9.4		%
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Weighted average number of shares of Common Stock outstanding:
Basic	87,965			86,189			87,441			83,449
Warrants	—			—			—			—
Stock options	—			—			543			—
RSUs	—			—			1,070			—
Diluted	87,965			86,189			89,054			83,449
Net income (loss) per share attributable to common stockholders:
Basic	$	—		$	(0.08)		$	0.03		$	(0.26)
Diluted	$	—		$	(0.08)		$	0.03		$	(0.26)

The following potential Common Stock equivalents were excluded from the computation of diluted net income (loss) per share for the respective periods ending on these dates since the impact of inclusion was anti-dilutive (in thousands):


	Three Months Ended	Nine Months Ended
	September 30, 2022	September 30, 2022
RSUs	1,243	460
Stock options	4,914	4,161
Warrants	18,128	18,128
Total	24,285	22,749

For both the three and nine months ended September 30, 2021, all of the Common Stock equivalents were anti-dilutive as the Company had a net loss attributable to common stockholders.