For the three and six months ended June 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 has reported a net loss for the three and six months ended June 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 six months ended June 30, 2020 since the additional income would have an antidilutive impact.

The Company has reported net income for the three and six months ended June 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 their diluted net income per share during the period.

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Numerator
Net income (loss)	$	14,117	$	(27	)	$	21,503	$	(38,647	)
Accumulation of dividends on preferred stock		—		(10,446	)		—		(20,891	)
Net income (loss) available to common shareholders	$	14,117	$	(10,473	)	$	21,503	$	(59,538	)
Denominator
Net income (loss) per common share - basic	$	0.25	$	(1.34	)	$	0.38	$	(7.63	)
Net income (loss) per common share - diluted	$	0.24	$	(1.34	)	$	0.37	$	(7.63	)
Weighted average number of shares of common stock - basic		56,940,840		7,805,848			56,916,282		7,798,928
Weighted average number of shares of common stock - diluted		58,592,876		7,805,848			58,635,195		7,798,928

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options, SARs, and RSUs to purchase common stock		1,461,958		—		1,511,899		—
Warrants		190,078		—		207,013		—
Total		1,652,036		—		1,718,912		—

Potential common shares issuable upon conversion of preferred stock, exercise of stock options, and exercise of warrants that are 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Stock options, SARs, and RSUs to purchase common stock		4,731,119		2,413,507		4,681,177		2,413,507
Convertible preferred stock		—		39,141,451		—		39,141,451
Warrants		220,161		410,239		203,226		410,239
Total		4,951,280		41,965,197		4,884,403		41,965,197

Adjustment for warrants	$	—	$	438	$	—	$	1,584