Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2022

19 — Earnings (Loss) Per Share

The following table sets forth the calculation of Basic EPS and Diluted EPS for the years ended December 31, 2022 and 2021. Basic EPS is computed using Net income (loss) attributable to controlling interest, divided by the weighted average number of shares of Class A Common Stock outstanding during the period. Diluted EPS is computed using Net income (loss) attributable to controlling interest divided by the weighted average number of shares of Class A Common Stock outstanding during the period, adjusted to give effect to potentially dilutive securities. The Company's potentially dilutive securities consist of (1) unexercised warrants and unissued stock-based restricted stock units, performance restricted stock units and employee stock purchase plan shares, all using the Treasury Stock Method and (2) non-controlling interest Hagerty Group Units using the "If-converted" Method. In the computation of Diluted EPS, Net income (loss) attributable to controlling interest is adjusted to remove the change in fair value associated with the Company's warrant liabilities that are potentially dilutive and net income (loss) associated with non-controlling interest in Hagerty Group Units.


	Year Ended December 31,
	2022		2021

	in thousands (except per share amounts)
Numerator:
Net income (loss) attributable to controlling interest	$	32,078	$	(46,358)
Adjustments:
Change in fair value of potentially dilutive warrant liabilities	(27,392)		—
Net income (loss) attributable to non-controlling interest Hagerty Group Units	(28,642)		—
Adjusted net income (loss) attributable to Class A Common Stock shareholders	$	(23,956)	$	(46,358)

Denominator:
Weighted average shares of Class A Common Stock outstanding — basic	82,728		82,327
Adjustments:
Conversion of non-controlling interest Hagerty Group Units to shares of Class A Common Stock	252,806		—
Warrants	613		—
Stock-based compensation awards	—		—
Weighted average shares of Class A Common Stock outstanding — diluted	336,147		82,327

Earnings (loss) per share attributable to Class A Common Stock shareholders
Basic	$	0.39	$	(0.56)
Diluted	$	(0.07)	$	(0.56)