NET INCOME PER COMMON SHARE (“EPS”)

9 Months Ended

Sep. 30, 2021

Basic EPS is computed using net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding during each period, excluding unvested restricted stock units (“RSUs”).

Diluted EPS represents net income (loss) attributable to common stockholders divided by the weighted-average number of common shares outstanding during the period, including common stock equivalents. Common stock equivalents consist of shares subject to warrants and share-based awards with exercise prices less than the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Regarding RSUs subject to a market condition, before the end of the contingency period, the number of contingently issuable shares (i.e., RSUs) to be included in diluted EPS would be based on the number of common shares issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, assuming the result would be dilutive. Those contingently issuable shares would be included in the denominator of diluted EPS as of the beginning of the period, or as of the grant date of the share-based payment, if later.

Basic and diluted net income (loss) per share attributable to common stockholders is computed using the two-class method as the convertible preferred stock is determined to be a participating security and the application of the if-converted method is not more dilutive.

Net income per share attributable to common stockholders

The following table presents information necessary to calculate basic and diluted EPS for the three and nine months ended September 30, 2021 and 2020:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Net income	$	17,265	$	2,651	$	24,462	$	2,125
Cumulative dividends allocated to Series A Convertible Preferred Stock	—		(682)		—		(1,990)
Net income available for distribution	17,265		1,969		24,462		135
Less: Undistributed earnings allocable to participating securities	—		(196)		—		(13)
Basic and diluted net income attributable to common stockholders	$	17,265	$	1,773	$	24,462	$	122
Less: Effect on net income of dilutive securities using the “if converted” method	—		—		—		—
Diluted net income attributable to common stockholders after adjustment for assumed conversions	$	17,265	$	1,773	$	24,462	$	122
Weighted-average shares of common stock outstanding for basic net income per share attributable to common stockholders	43,760,975		20,688,439		38,497,925		20,688,439
Dilutive effect of warrants using the treasury stock method	710,760		81,971		1,860,523		29,113
Dilutive effect of restricted stock units using the treasury stock method	1,175,279		199,333		1,424,184		127,544
Dilutive effect of stock options using the treasury stock method	641,061		142,232		711,992		47,411
Weighted-average shares of common stock outstanding for diluted net income per share attributable to common stockholders	46,288,075		21,111,975		42,494,624		20,892,507
Basic net income per share attributable to common stockholders	$	0.39	$	0.09	$	0.64	$	0.01
Diluted net income per share attributable to common stockholders	$	0.37	$	0.08	$	0.58	$	0.01

The computation of the weighted-average shares of common stock outstanding for diluted EPS includes the following potential common shares attributable to common stockholders using the treasury stock method for the weighted-average period during which the units were outstanding:


	Three months ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Shares subject to warrants outstanding	1,073,839	344,716	2,532,580	344,716
Shares subject to unvested restricted stock units with time-based and/or market-based vesting conditions	1,294,652	402,151	1,536,886	402,151
Shares subject to stock options outstanding	808,127	824,221	858,952	848,837

The computation of the weighted-average shares of common stock outstanding for diluted EPS excludes the following potential common shares as their inclusion would have an anti-dilutive effect on diluted EPS attributable to common stockholders:


	Three months ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Shares subject to warrants outstanding	—	3,541,475	—	3,541,475
Shares subject to unvested restricted stock units with performance vesting conditions	—	2,117,228	—	2,117,228
Shares subject to unvested restricted stock units with only time-based vesting conditions	66,451	—	29,816	—
Shares subject to stock options outstanding	44	—	11	—
Shares of common stock subject to conversion of 7,725,045 shares Series A Convertible Preferred Stock	—	2,291,469	—	2,291,469
Shares of common stock subject to share settlement of cumulative dividend on Series A Convertible Preferred Stock	—	57,797	—	168,644