EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method.

The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock.


	Three Months Ended March 31,
$ in thousands, except per share amounts	2023		2022
Numerator
Net loss from continuing operations	$	(8,842)	$	(1,747)
Income from discontinued operations, net of tax	671		1,318
Net loss	$	(8,171)	$	(429)
Denominator
Basic weighted average shares outstanding	53,427		41,058


Diluted weighted average shares outstanding (a)	53,427		41,058

(Loss) income per basic share:
Loss per basic share from continuing operations	$	(0.16)	$	(0.04)
Income per basic share from discontinued operations	0.01		0.03
Loss per basic share	$	(0.15)	$	(0.01)

(Loss) income per diluted share:
Loss per diluted share from continuing operations	$	(0.16)	$	(0.04)
Income per diluted share from discontinued operations	0.01		0.03
Loss per diluted share	$	(0.15)	$	(0.01)

(a) For the three months ended March 31, 2023, there was no impact of dilution from any of the outstanding 154,535 RSUs or 3,639,184 common stock options due to the net loss, since inclusion of any impact from these awards would be anti-dilutive. For the three months ended March 31, 2022, there was no impact of dilution from any of the outstanding 431,618 RSUs or 579,858 common stock options due to the net loss, since inclusion of any impact from these awards would be antidilutive.

Reverse Stock Split

On April 11, 2023, the stockholders approved a reverse stock split of the Company's issued and outstanding Class A common stock, par value $0.0001 per share and Class B common stock, par value $0.0001 per share, such that all outstanding shares of common stock shall be reclassified into a smaller number of shares such that every ten (10) shares of Class A common stock are combined and reclassified into one (1) share of Class A common stock and every ten (10) shares of Class B common stock are combined and reclassified into one (1) share of Class B common stock such that every holder of outstanding shares of common stock on the effective date specified in the Certificate of Amendment shall receive, subject to the treatment of fractional shares described in the Certificate of Amendment, one share of Class A common stock or Class B common stock, as applicable, in exchange for ten shares of Class A common stock or Class B common stock, as applicable, held by such holder (the “Reverse Stock Split,”).

Since the Reverse Stock Split has not yet been consummated, the financial statements and footnotes presented have not yet been retroactively adjusted. The following unaudited proforma financial information presents the consolidated results of operations of the Company for the three months ended March 31, 2023 and 2022, as if the Reverse Stock Split had occurred as of the beginning of the first period presented instead of on the expected effective date of May 16, 2023.


	(Unaudited)
	Three Months Ended March 31,
$ in thousands, except per share amounts	2023		2022
Numerator
Net loss from continuing operations	$	(8,842)	$	(1,747)
Income from discontinued operations, net of tax	671		1,318
Net loss	$	(8,171)	$	(429)

Denominator
Basic weighted average shares outstanding	5,343		4,106


Diluted weighted average shares outstanding	5,343		4,106

(Loss) income per basic share:
Loss per basic share from continuing operations	$	(1.66)	$	(0.42)
Income per basic share from discontinued operations	0.13		0.32
Loss per basic share	$	(1.53)	$	(0.10)

(Loss) income per diluted share:
Loss per diluted share from continuing operations	$	(1.66)	$	(0.42)
Income per diluted share from discontinued operations	0.13		0.32
Loss per diluted share	$	(1.53)	$	(0.10)