Earnings per share

9 Months Ended

Sep. 30, 2021

The Company computed earnings per share (“EPS”) in conformity with the two-class method required for participating securities. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. The Company allocated income between its common and preferred shareholders only for the periods the preferred stock was outstanding, which was January 1, 2020 to March 4, 2020. There was no preferred stock outstanding from March 5, 2020 to September 30, 2021. As the Company was in a net loss position for the periods between January 1, 2020 to March 4, 2020 and March 5, 2020 to September 30, 2021, the net loss was allocated entirely to common shareholders.

All participating securities are excluded from basic weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, restricted stock units, performance stock units, warrants, and convertible preferred securities. The dilutive effect of potentially dilutive securities is reflected in diluted EPS in order of dilution and by application of the treasury stock method and the if-converted method for stock-based compensation and convertible preferred securities, respectively.

The following table sets forth the computation of basic and diluted EPS of common stock as follows (in thousands except per share data):


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Numerator for basic and diluted loss per share
Net loss	$	(549)	$	(1,117)	$	(4,094)	$	(7,879)

Denominator for basic and diluted loss per share
Weighted-average shares outstanding – basic and diluted	62,610		49,651		56,280		43,074

Net income/(loss) per share
Basic	$	(0.01)	$	(0.02)	$	(0.07)	$	(0.18)
Diluted	$	(0.01)	$	(0.02)	$	(0.07)	$	(0.18)

The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect.


	Three months ended September 30,		Nine months ended September 30,
Potential common shares (in ‘000s)	2021	2020	2021	2020
Convertible preferred stock	—	—	—	1,048
Stock options to purchase common stock	6,486	6,467	7,088	8,676
Restricted stock units	1,840	2,963	3,042	2,993
Performance stock units	1,452	1,292	1,452	1,292
Warrants to purchase common stock	4,208	11,347	11,347	11,347
Total	13,986	22,069	22,929	25,356