Net Income (Loss) Per Share

12 Months Ended

Jan. 01, 2023

Net Loss per Share

The Company applies the two-class method to calculate and present net loss per share. The Company's non-vested restricted share awards and Series D Convertible Preferred Stock held by the BKC Stockholders contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income 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.

Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net 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:


	Year ended
	January 1, 2023		January 2, 2022		January 3, 2021
Basic net loss per share:
Net loss	$	(75,572)	$	(43,029)	$	(29,463)
Less: Income attributable to non-vested shares	—		—		—
Less: Income attributable to preferred stock	—		—		—
Net loss available to common stockholders	$	(75,572)	$	(43,029)	$	(29,463)
Weighted average common shares outstanding	50,718,387		49,899,274		50,751,185
Basic net loss per share	$	(1.49)	$	(0.86)	$	(0.58)
Diluted net loss per share:
Net loss	$	(75,572)	$	(43,029)	$	(29,463)
Weighted average common shares outstanding	50,718,387		49,899,274		50,751,185
Dilutive effect of preferred stock and non-vested shares	—		—		—
Dilutive weighted average common shares outstanding	50,718,387		49,899,274		50,751,185
Diluted net loss per share (1)	$	(1.49)	$	(0.86)	$	(0.58)
Shares excluded from diluted net loss per share computations (1)	9,624,963		9,681,878		9,615,435