Net Income (Loss) Per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2024

Net Income (Loss) Per Share Attributable to Common Stockholders

Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Under the two-class method, net income (loss) is attributed to common stockholders and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed.

The Company considers its convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of the Company’s convertible preferred stock do not have a contractual obligation to share in the Company’s losses.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2024		2023
Basic earnings per common share:
Net income (loss) and comprehensive income (loss)	$	3,274	$	(11,867)
Less:
Accretion on convertible preferred stock	(1,328)		(653)
Net income (loss) allocated to participating securities	(661)		—
Net income (loss) attributable to common stockholders, basic (1)	$	1,285	$	(12,520)

Weighted average common shares outstanding, basic	8,740,059		8,110,387
Net income (loss) per share attributable to common stockholders, basic	$	0.15	$	(1.54)

Diluted earnings per common share:
Net income (loss) and comprehensive income (loss)	$	3,274	$	(11,867)
Less:
Accretion on convertible preferred stock	(1,328)		(653)
Effect of dilutive securities	(6,809)		—
Net loss attributable to common stockholders, diluted	$	(4,863)	$	(12,520)

Weighted average common shares outstanding, basic	8,740,059		8,110,387
Effect of dilutive securities	877,766		—
Weighted average common shares outstanding, diluted	9,617,825		8,110,387
Net income (loss) per share attributable to common stockholders, diluted	$	(0.51)	$	(1.54)

(1) For the three months ended March 31, 2023, the Company did not allocate its net loss to participating convertible preferred stock as those shares are not obligated to share in the losses of the Company.

The following table summarizes the common stock equivalents of potentially dilutive outstanding securities excluded from the computation of diluted net income (loss) per share due to their anti-dilutive effect:


	As of March 31,
	2024	2023
Stock options	463,168	529,897
RSUs	1,526,327	365,512
PRSUs	71,428	87,323
ESPP shares committed	19,388	23,817
Common stock warrants	3,102,591	9,175,282
Convertible preferred stock	5,200,802	4,373,178
Total	10,383,704	14,555,009

The Company’s 200,536 unvested earnout shares, described in Part II, Item 8 "Financial Statements and Supplementary Data - Note 11 to the Consolidated Financial Statements - Common Stock Warrants and Earnout Shares" in the 2022 Form 10-K, were excluded from the calculation of basic and diluted per share calculations as the vesting conditions have not yet been met as of March 31, 2024.