NON-CONTROLLING INTEREST AND INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2020

NON-CONTROLLING INTEREST AND INCOME (LOSS) PER SHARE

NON-CONTROLLING INTEREST AND INCOME (LOSS) PER SHARE

3. NON-CONTROLLING INTEREST AND INCOME (LOSS) PER SHARE

The calculation of controlling and non-controlling interest is as follows as of March 31, 2019 and 2020:

	2019		2020
Focus LLC common units held by continuing owners	22,568,831		21,759,379
Common unit equivalents of outstanding vested and unvested incentive units held by continuing owners(1)	7,614,402		3,623,660
Total common units and common unit equivalents attributable to non-controlling interest	30,183,233		25,383,039
Total common units and common unit equivalents of incentive units outstanding	76,858,416		73,190,068
Non-controlling interest allocation	39.3	%	34.7	%
Company’s interest in Focus LLC	60.7	%	65.3	%

(1) Focus LLC common units issuable upon conversion of 18,048,706 and 19,369,928 (see Note 9) vested and unvested Focus LLC incentive units outstanding as of March 31, 2019 and 2020, respectively, was calculated using the common unit equivalent of vested and unvested Focus LLC incentive units based on the closing price of the Company’s Class A common stock on the last trading day of the periods.

The below table contains a reconciliation of net income (loss) to net income (loss) attributable to common shareholders:

	Three Months Ended
	March 31,
	2019		2020
Net income (loss)	$	(2,828)	$	34,019
Non-controlling interest		(114)		(13,623)
Net income (loss) attributable to common shareholders	$	(2,942)	$	20,396

The calculation of basic and diluted income (loss) per share is described below:

Basic income (loss) per share is calculated utilizing net income (loss) attributable to common shareholders divided by the weighted average number of shares of Class A common stock outstanding during the same periods:

	Three Months Ended
	March 31,
	2019		2020
Basic income (loss) per share:
Net income (loss) attributable to common shareholders	$	(2,942)	$	20,396
Weighted average shares of Class A common stock outstanding		46,211,599		47,436,555
Basic income (loss) per share	$	(0.06)	$	0.43

Diluted income (loss) per share is calculated utilizing net income (loss) attributable to common shareholders divided by the weighted average number of shares of Class A common stock outstanding during the same periods plus

the effect, if any, of the potentially dilutive shares of the Company’s Class A common stock from stock options, unvested Class A common stock and restricted stock units as calculated using the treasury stock method:

	Three Months Ended
		March 31,
	2019		2020
Diluted income (loss) per share:
Net income (loss) attributable to common shareholders	$	(2,942)	$	20,396
Weighted average shares of Class A common stock outstanding		46,211,599		47,436,555
Effect of dilutive stock options		—		2,573
Effect of dilutive unvested Class A common stock and restricted stock units		—		2,044
Total		46,211,599		47,441,172
Diluted income (loss) per share	$	(0.06)	$	0.43

Diluted loss per share for the three months ended March 31, 2019 excludes incremental shares of 7,855 related to unvested Class A common stock since the effect would be antidilutive. Diluted income (loss) per share for the three months ended March 31, 2019 and 2020 excludes shares related to 155,000 market-based stock options that vest on the fifth anniversary of the pricing of the Company’s IPO if the volume weighted average per share price for any ninety-calendar day period within such five-year period immediately following the pricing of the IPO reaches at least $100. Such market-based criteria were not met at March 31, 2019 and 2020.

Focus LLC common and incentive units may be exchanged for the Company’s Class A common stock, subject to certain limitations (see Note 9). Such exchange is not reflected in diluted income (loss) per share as the assumed exchange is not dilutive.