Note 17 - Loss Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

17. Loss Per Share

Basic loss per share available to AvePoint common shareholders (“EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding for the period. In computing diluted EPS, the Company adjusts the denominator, subject to anti-dilution requirements, to include the dilution from potential shares of Common Stock resulting from outstanding share based payment awards, warrants, earn-outs and the conversion of convertible preferred shares. AvePoint applies the two-class method in calculating loss per share. AvePoint’s Sponsor Earn-Out Shares described in “Note 13 — Mezzanine Equity and Stockholders’ Equity” are considered participating securities and have no contractual obligation to shares in the loss of the Company. As such, the weighted-average impact of these shares is excluded from the calculation of loss per share below. As losses were incurred during all periods presented, no earnings per share exists for the Sponsor Earn-Out Shares.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(in thousands, except per share amounts)
Loss per share available to common shareholders, excluding sponsor earn-out shareholders
Numerator:
Net loss	$	(6,786	)	$	(9,757	)	$	(27,041	)	$	(25,756	)
Net income attributable to redeemable noncontrolling interest		(626	)		(517	)		(1,870	)		(1,413	)
Net loss attributable to AvePoint, Inc.	$	(7,412	)	$	(10,274	)	$	(28,911	)	$	(27,169	)
Deemed dividends on preferred stock		—			608			—			(32,928	)
Total net loss available to common shareholders	$	(7,412	)	$	(9,666	)	$	(28,911	)	$	(60,097	)
Denominator:
Weighted average common shares outstanding		180,732			176,621			179,563			126,738
Effect of dilutive securities		—			—			—			—
Weighted average diluted shares		180,732			176,621			179,563			126,738
Basic and diluted loss per share available to common shareholders, excluding sponsor earn-out shareholders	$	(0.04	)	$	(0.05	)	$	(0.16	)	$	(0.47	)

To arrive at net loss available to common shareholders, the Company deducted net income attributable to the redeemable noncontrolling interest in EduTech and deemed dividends, which related to the redemption, extinguishment, and remeasurement of preferred stock.

For the nine months ended September 30, 2022 and 2021, the Company’s potentially dilutive securities were deemed to be anti-dilutive given the Company’s net loss position. As such, basic loss per share is equal to diluted loss per share for the periods presented.

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported:

	September 30,
	2022		2021
	(in thousands)
Stock options		29,867		31,232
Restricted stock units		8,490		5,437
Warrants		17,905		17,905
Company Earn-Outs		3,000		3,000
Total potentially dilutive securities		59,262		57,574