NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2022

NET INCOME (LOSS) PER SHARE:

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income (loss) by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units and restricted stock awards, the assumed issuance of awards for contingently issuable performance-based awards, as computed using the treasury stock method. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share after evaluating the applicable performance criteria as of period end and under the assumption the end of the reporting period was the end of the contingency period, and the effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse. The Company has no plans to declare dividends.

A summary of the net income (loss) per share calculation is as follows for the three months ended March 31,:


(In thousands, except per share amounts)	March 31, 2022		March 31, 2021
Numerator - basic and diluted:
Net income (loss)	$	79,792	$	(7,345)

Denominator
Weighted-average common shares - basic common stock	119,542		19,741
Weighted-average common shares - diluted common stock	131,149		19,741

Net income (loss) per share - basic common stock	$	0.67	$	(0.37)
Net income (loss) per share - diluted common stock	$	0.61	$	(0.37)

Denominator
Weighted-average common shares - basic common stock	119,542		19,741
Stock options and other dilutive awards	11,607		—
Weighted-average common shares - diluted common stock	131,149		19,741

Shares excluded from diluted weighted-average shares:1, 2
Redeemable convertible preferred stock shares	—		54,449
Warrants to purchase redeemable convertible preferred stock	—		176
Warrants to purchase common shares	—		1,107
Earnout shares (potentially issuable common shares)	10,000		—
Unvested restricted stock units and restricted stock awards	4,979		—
Stock options potentially exercisable for common shares	6,500		11,860
Shares excluded from diluted weighted average shares	21,479		67,485

(1)The Company’s potentially dilutive securities, which include unexercised stock options, unvested shares, preferred shares and warrants for common and preferred shares, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share for the three months ended March 31, 2021. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common shareholders is the same.

(2) Balances as of March 31, 2021 retroactively restated to give effect to the October 19, 2021 reverse recapitalization.