NET (LOSS) INCOME PER SHARE

12 Months Ended

Dec. 31, 2020

Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock options and convertible debt. The 6,339,765 shares of common stock issuable upon the

exercise of warrants are included in the number of outstanding shares used for the computation of basic and diluted loss per share for the year ended December 31, 2020 (see Note 15. Shareholders’ Equity). The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net (loss) income per share when their effect is dilutive.

The following table reflects the calculation of basic and diluted earnings per common share for the years ended December 31, 2020 and 2019 (in thousands, except for per share amounts):


	Year ended December 31,
	2020		2019
Basic net income (loss) per share
Net loss	$	(28,144)	$	(217,201)
Weighted average common shares outstanding	104,835		70,716
Basic net loss per share	$	(0.27)	$	(3.07)

Diluted net income (loss) per share
Net loss	$	(28,144)	$	(217,201)

Weighted average common shares outstanding	104,835		70,716
Add: effect of dilutive securities	—		—
Denominator for diluted loss per share	104,835		70,716
Diluted net loss per share	$	(0.27)	$	(3.07)

The following table reflects outstanding potentially dilutive shares of common stock that are not included in the computation of diluted net income (loss) per share because, to do so would be anti-dilutive for the years ended December 31, 2020, and 2019 (in thousands):


	Year ended December 31,
	2020	2019
2.50% Convertible Notes due 2021	1,344	13,895
5.00% Convertible Notes due 2024	6,831	14,895
Stock options and equivalents	10,620	6,486
Total potentially dilutive common shares	18,795	35,276