Earnings per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings per Share

14. EARNINGS PER SHARE

The Company has reported a net loss for the three months ended September 30, 2021. The weighted average number of shares utilized for basic and diluted net loss per share attributable to common stockholders are the same for this period because all stock options and warrants have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an antidilutive impact.

The Company has reported net income for the nine months ended September 30, 2021. Diluted net income (loss) per common share is computed under the treasury stock method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, stock appreciation rights, restricted stock units and warrants. In addition, the Company analyzes the potential dilutive effects of the outstanding convertible preferred stock under the ‘if-converted’ method when calculating diluted earnings per share, in which it is assumed that the outstanding convertible preferred stock converts into common stock at the beginning of the

period or when issued if later. The Company reports the more dilutive of the approaches (treasury stock or ‘if converted’) as its diluted net income per share during the period.

For the three and nine months ended September 30, 2020, the Company used the two-class method to compute net loss per common share because the Company has issued securities (convertible preferred stock) that entitle the holder to participate in dividends and earnings of the Company. Under this method, net income is reduced by the amount of any dividends earned and the accretion of convertible preferred stock to its redemption value during the period. The remaining earnings (undistributed earnings) are allocated to common stock and each series of convertible preferred stock to the extent that each preferred security may share in the earnings as if all of the earnings for the period had been distributed. The total earnings allocated to common stock is then divided by the number of outstanding shares to which the earnings are allocated to determine the earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock have no obligation to fund losses.

The Company reported a net loss for the three and nine months ended September 30, 2020, and the weighted average number of shares utilized for basic and diluted net loss per share attributable to common stockholders are the same for these periods because all convertible preferred stock and stock options have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an antidilutive impact. Additionally, the fair value adjustment for the warrants was excluded from the computation of diluted net loss for the three and nine months ended September 30, 2020 since the additional income would have an antidilutive impact.

The following table sets forth the computation of basic and diluted net (loss) income per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator
Net (loss) income	$	(9,620)	$	1,909	$	11,883	$	(36,736)
Accumulation of dividends on preferred stock		—		(6,013)		—		(26,904)
Net (loss) income available to common shareholders	$	(9,620)	$	(4,104)	$	11,883	$	(63,640)
Denominator
Net (loss) income per common share - basic	$	(0.17)	$	(0.14)	$	0.21	$	(4.15)
Net (loss) income per common share - diluted	$	(0.17)	$	(0.14)	$	0.20	$	(4.15)
Weighted average number of shares of common stock - basic		57,722,163		30,212,959		57,188,101		15,324,362
Weighted average number of shares of common stock - diluted		57,722,163		30,212,959		58,776,158		15,324,362

Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Stock options, SARs, and RSUs to purchase common stock		—		—		1,405,092		—
Warrants		—		—		182,965		—
Total		—		—		1,588,057		—

Potential common shares issuable upon conversion of preferred stock, exercise of stock options, and exercise of warrants that were excluded from the computation of diluted weighted-average shares outstanding as well as the warrant fair value adjustments excluded from the numerator are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Stock options, SARs, and RSUs to purchase common stock		6,085,742		5,051,465		4,680,651		5,051,465
Warrants		—		410,239		—		410,239
Total		6,085,742		5,461,704		4,680,651		5,461,704
Adjustment for warrants	$	—	$	1,525	$	—	$	3,109