Net Loss Per Share (Notes)

6 Months Ended

Jul. 03, 2022

Net Loss per Share

The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested restricted share awards and Series B Convertible Preferred Stock contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income (loss) per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred a net loss for the three and six months ended July 3, 2022 and July 4, 2021, and losses are not allocated to participating securities under the two-class method, such method is not applicable for the aforementioned interim reporting periods.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method.

The following table sets forth the calculation of basic and diluted net loss per share:


	Three Months Ended				Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Basic net loss per share:
Net loss	$	(26,476)	$	(9,559)	$	(47,745)	$	(16,727)



Weighted average common shares outstanding	50,795,328		49,917,296		50,634,008		49,870,718
Basic net loss per share	$	(0.52)	$	(0.19)	$	(0.94)	$	(0.34)
Diluted net loss per share:
Net loss	$	(26,476)	$	(9,559)	$	(47,745)	$	(16,727)


Shares used in computing diluted net loss per share	50,795,328		49,917,296		50,634,008		49,870,718
Diluted net loss per share	$	(0.52)	$	(0.19)	$	(0.94)	$	(0.34)
Shares excluded from diluted net loss per share computations(1)	11,951,161		11,010,535		11,951,161		11,010,535

(1)Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.