EARNINGS PER SHARE AND EQUITY

12 Months Ended

Dec. 31, 2022

Basic loss per share of common stock (“LPS”) is calculated by dividing net loss attributable to stockholders and Former Parent by the weighted average number of common stock outstanding, plus any participating securities. Diluted LPS is calculated by dividing net loss attributable to stockholders and Former Parent by the weighted average number of common stock outstanding, plus any participating securities and potentially dilutive securities. Potentially dilutive securities are calculated using the treasury stock method.

The calculation of basic and diluted LPS is presented below:


	Year Ended December 31,
(in thousands, except per share data)	2022		2021		2020
Net loss	$	(187,517)	$	(106,341)	$	(71,723)
Less: Net loss attributable to non-controlling interests in consolidated subsidiaries	(33,933)		(26,472)		(16,522)

Less: Dividends and accretion of redeemable preferred stock	23,657		—		—
Net loss attributable to stockholders and Former Parent	$	(177,241)	$	(79,869)	$	(55,201)
Weighted Average Common Stock Outstanding - Basic (1)	102,747,121		99,387,467		99,387,467
Weighted Average Common Stock Outstanding - Diluted (1)	102,747,121		99,387,467		99,387,467

Loss per share:
Basic	$	(1.73)	$	(0.80)	$	(0.56)
Diluted (2)	$	(1.73)	$	(0.80)	$	(0.56)

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(1) The year ended December 31, 2022 includes penny warrants which can be converted into a fixed amount of our stock.

(2) Diluted LPS for the year ended December 31, 2022 includes the dilutive effect of subsidiary earnings per share.

For the year ended December 31, 2022, 586,269 shares of common stock have been excluded from the calculation of Diluted LPS because the impact would be anti-dilutive.

On the Spin-off Date, FTAI distributed one share of FTAI Infrastructure, Inc. common stock for each FTAI common share held by FTAI’s shareholders of record as of the record date. As of that date, 99,387,467 shares of common stock were distributed. This number of shares is utilized for the calculation of basic and diluted loss per share for all periods presented prior to the spin-off. For the years ended December 31, 2021 and 2020, these shares are treated as issued and outstanding for purposes of calculating historical earnings per share. For periods prior to the spin-off, it is assumed that there are no dilutive equity instruments as there were no equity awards of FTAI Infrastructure, Inc. outstanding prior to the spin-off.

In addition, as of the Spin-off Date, each FTAI option held by the Manager or by the directors, officers, employees, service providers, consultants and advisors of the Manager was converted into an adjusted FTAI option and a new FTAI Infrastructure Inc. option. The exercise price of each adjusted FTAI Infrastructure Inc. option was set to collectively maintain the intrinsic value of the FTAI option immediately prior to the spin-off and to maintain the ratio of the exercise price of the adjusted FTAI option and the FTAI Infrastructure Inc. option, respectively, to the fair market value of the underlying shares. The terms and conditions applicable to each FTAI Infrastructure option are substantially similar to the terms and conditions otherwise applicable to the FTAI option.

On August 1, 2022, we issued 10.9 million options to purchase common stock to the Manager, with a term of 10 years and strike price of $2.76 as compensation to the Manager for services rendered in connection with the Redeemable Preferred Stock raise, as discussed in Note 18.

We issued 15,000 options to purchase common stock to certain directors as compensation during the year ended December 31, 2022.

Common Stock Warrants

On August 1, 2022, in connection with the Redeemable Preferred Stock raise, the Company issued two classes of warrants to the redeemable preferred stockholders. The Series I Warrants represent the right to purchase 3,342,566 shares of common stock, at an exercise price of $10.00 per share, and the Series II Warrants represent the right to purchase 3,342,566 shares of common stock at an exercise price of $0.01 per share. Both classes of warrants expire on the earlier of August 1, 2030 or a change in control. The Series II Warrants participate on an as-converted basis in any dividends with respect to the common stock.

A summary of the status of the Company’s outstanding stock warrants and changes during the year ended December 31, 2022 is as follows:


	Number of Warrants	Weighted Average Exercise Price
Outstanding as of December 31, 2021	—	$	—
Issued	6,685,132	5.01
Expired	—	—
Exercised	—	—
Outstanding as of December 31, 2022	6,685,132	$	5.01
Warrants exercisable as of December 31, 2022	6,685,132	$	5.01

The weighted average remaining contractual term of the outstanding warrants as of December 31, 2022 is 7.6 years. The aggregate intrinsic value of the warrants as of December 31, 2022 is $9.8 million.