EARNINGS (LOSS) PER COMMON SHARE (“EPS”)

3 Months Ended

Mar. 31, 2022

EARNINGS (LOSS) PER COMMON SHARE (“EPS”)

Basic EPS is computed using net income (loss) 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) 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.

The following table presents information necessary to calculate basic and diluted EPS for the three months ended March 31, 2022, and 2021:


	Three months ended March 31,
	2022		2021
Net (loss) income	$	(23,296)	$	4,940
Weighted-average shares of common stock outstanding	44,718,510		33,717,103
Dilutive effect of warrants using the treasury stock method	—		2,840,464
Dilutive effect of restricted stock units using the treasury stock method	—		1,658,866
Dilutive effect of stock options using the treasury stock method	—		780,598
Diluted weighted-average shares of common stock outstanding	44,718,510		38,997,031
Basic EPS	$	(0.52)	$	0.15
Diluted EPS	$	(0.52)	$	0.13

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:


	Three months ended March 31,
	2022	2021
Shares subject to warrants outstanding	17,669	—
Shares subject to unvested performance based and restricted stock units	1,234,857	—
Shares subject to stock options outstanding	696,071	—