Earnings per share

12 Months Ended

Dec. 31, 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 and May 6, 2019 to December 31, 2019. There was no preferred stock outstanding March 5, 2020 to December 31, 2020 and January 1, 2019 to May 6, 2019. As the Company was in a net loss position for the year ended December 31, 2020, 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, 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:


	For the years ended December 31,
	2021		2020		2019
	(in thousands, except per share data)
Numerator for basic earnings per share
Net income/(loss)	$	(7,700)	$	(12,599)	$	10,807
Less: Income attributable to preferred shareholders	—		—		(377)
Net income/(loss) available to common shareholders	$	(7,700)	$	(12,599)	$	10,430

Denominator for basic earnings per share
Weighted-average shares outstanding – basic	58,662		44,737		21,118
Basic earnings/(loss) per share	$	(0.13)	$	(0.28)	$	0.49

Numerator for diluted earnings per share
Net income available to common shareholders	$	(7,700)	$	(12,599)	$	10,430

Denominator for diluted earnings per share
Basic weighted-average common shares outstanding	58,662		44,737		21,118
Add: Dilutive impact of options in the money	—		—		4
Weighted-average shares outstanding for diluted earnings per share	58,662		44,737		21,122
Diluted earnings/(loss) per share	$	(0.13)	$	(0.28)	$	0.49

The denominator used in the calculation of basic and diluted EPS has been retrospectively adjusted for the recapitalization of the Company’s shares as a result of the Business Combination as further described in Note 3.

The following potential dilutive common shares, presented based on weighted average potential shares outstanding during each period and adjusted for the stock split as a result of the transaction, were excluded from the calculation of diluted net loss per

share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:


	For the years ended December 31,
Potential common shares	2021	2020	2019
	(in thousands)
Convertible preferred stock	—	184	689
Stock options to purchase common stock	5,826	4,649	5,273
Restricted stock units	2,110	2,261	—
Performance stock units	1,301	961	—
Warrants to purchase common stock	3,657	9,326	—
Total	12,894	17,381	5,962