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

12 Months Ended

Dec. 31, 2022

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

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

Diluted EPS represents net (loss) income 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 shares of common stock 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 years ended December 31, 2022, and 2021:


	Years ended December 31,
	2022		2021
Net (loss) income	$	(285,415)	$	13,416
Weighted-average shares of common stock outstanding	44,974,856		39,991,809
Dilutive effect of warrants using the treasury stock method	—		1,395,393
Dilutive effect of restricted stock units using the treasury stock method	—		1,068,984
Dilutive effect of stock options using the treasury stock method	—		533,009
Diluted weighted-average shares of common stock outstanding	44,974,856		42,989,195
Basic EPS	$	(6.35)	$	0.34
Diluted EPS	$	(6.35)	$	0.31

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


	Years ended December 31,
	2022	2021
Shares subject to warrants outstanding	—	1,899,435
Shares subject to unvested performance based and restricted stock units	—	1,311,914
Shares subject to stock options outstanding	—	831,517

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


	Years ended December 31,
	2022	2021
Shares subject to warrants outstanding	17,669	17,817
Shares subject to unvested performance based and restricted stock units	1,088,879	71,871
Shares subject to stock options outstanding	670,026	10,641