EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

The following are the components and results of operations and earnings (loss) per common share calculations for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
(amounts in thousands, except per share data)	2022		2021		2022		2021
Net income (loss) available to common shareholders - used in calculating basic EPS	$	(4,920)	$	7,124	$	3,406	$	18,393
Adjustment for private warrant liability1	—		—		—		17,989
Net income (loss) - used in calculating diluted EPS	$	(4,920)	$	7,124	$	3,406	$	404

Weighted-average common shares outstanding – basic	11,938		11,900		11,944		11,834
Weighted-average common shares outstanding – diluted	11,938		11,904		12,215		12,359

Net income (loss) per common share - basic	$	(0.41)	$	0.60	$	0.29	$	1.55
Net income (loss) per common share - diluted	$	(0.41)	$	0.60	$	0.28	$	0.03

1 Diluted earnings per share for the nine months ended September 30, 2021 is calculated based on adjusted net income of $0.4 million due to the elimination of the revaluation gain on the private warrant liability.

The following table presents the reconciliation from basic to diluted weighted average shares outstanding used in the calculation of basic and diluted earnings per share:


	Three Months Ended September 30,		Nine Months Ended September 30,
(amounts in thousands)	2022	2021	2022	2021
Weighted average shares used in computing net income (loss) per common share, basic	11,938	11,900	11,944	11,834
Add:
Public warrants	—	—	—	372
Private warrants	—	—	—	152
Service-based RSUs	—	4	271	1
Weighted average shares used in computing net income (loss) per common share, diluted	11,938	11,904	12,215	12,359

For basic earnings per share, the performance shares are subject to forfeiture and they are considered share-indexed instruments and not outstanding shares until they are vested. During the three and nine months ended September 30, 2022 and 2021, the vesting criteria has not been met and they are not included.

For the three and nine months ended September 30, 2022, our performance shares, public warrants, and private warrants were excluded from the computation of diluted weighted average shares outstanding as the necessary conditions had not been achieved for the performance shares and the average stock price for the period was below the strike price for the warrants. The performance shares are only considered in the calculation for diluted earnings per share if they are dilutive in nature. The performance shares are only dilutive when the average share price is greater than the strike price and when positive net income is reported. During the three and nine months ended September 30, 2022, the average share price was below the strike price and these shares were not included in the diluted earnings per share calculations. For the three and nine months ended September 30, 2022, our performance based and market condition RSUs were also excluded because the vesting is contingent upon the satisfaction of certain conditions which had not been achieved as of September 30, 2022. For the three and nine months ended September 30, 2022, 343 and 72, respectively, of our service-based RSUs were also excluded as the effect would be anti-dilutive.

For the three and nine months ended September 30, 2021, our performance shares were excluded from the computation of diluted weighted average shares outstanding as the necessary conditions had not been achieved. For the three months ended September 30, 2021, our public warrants and private warrants were excluded as the net loss for the period would make their inclusion anti-dilutive in nature. For the nine months ended September 30, 2021, our public warrants and private warrants were included as the average stock price for the period was above the strike price for the warrants. For the three and nine months ended September 30, 2021, our performance based and market condition RSUs were excluded because the vesting is contingent upon the satisfaction of certain conditions which had not been achieved as of September 30, 2021 For the three and nine months ended September 30, 2021, there were 4 and 1, respectively of service-based RSUs vested which were included in the computation of diluted weighted average shares outstanding.

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share of common stock:


	Three Months Ended September 30,		Nine Months Ended September 30,
(amounts in thousands)	2022	2021	2022	2021
Performance shares	300	300	300	300
Public warrants	17,227	16,929	17,227	—
Private warrants	5,476	6,946	5,476	—
Performance based and market-condition RSUs	348	348	348	348
Service-based RSUs	343	—	72	—
Total	23,694	24,523	23,423	648