Net Income Per Share

3 Months Ended

Sep. 30, 2022

Basic income per share is determined by dividing net income by the weighted average common shares outstanding during the period. Diluted income per share is determined by dividing net income by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted net income per share based on the treasury stock method.

Prior to the Transaction, the Industrial Software Business did not have any shares of common stock outstanding. Accordingly, net loss per share for the three months ended September 30, 2021 has been calculated using weighted average shares outstanding (basic and diluted) based on the number of shares of common stock issued to Emerson on the Closing Date of the Transaction.

The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the three months ended September 30, 2022 and 2021 are as follows:


	Three Months Ended September 30,
(Dollars and Shares in Thousands, Except per Share Data)	2022		2021

Net (loss)	$	(11,244)	$	(11,202)

Basic weighted average shares outstanding	64,454		36,308



Dilutive weighted average shares outstanding	64,454		36,308

(Loss) per share
Basic	$	(0.17)	$	(0.31)
Dilutive	$	(0.17)	$	(0.31)

For the three months ended September 30, 2022, and 2021 certain employee equity awards were anti-dilutive based on the treasury stock method. The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of September 30, 2022 and 2021:


	Three Months Ended September 30,
	2022	2021
	(Shares in Thousands)
Employee equity awards	286	—

Included in the table above are options to purchase 49,079 shares of our common stock during the three months ended September 30, 2022, which were not included in the computation of dilutive weighted average shares outstanding, because their exercise prices ranged from $208.57 per share to $225.63 per share and were greater than the average market price of our common stock during the period then ended. These options were outstanding as of September 30, 2022 and expire at various dates through September 13, 2032.