Earnings Per Common Share

12 Months Ended

Jul. 02, 2022

10. EARNINGS PER COMMON SHARE

The Company uses the two-class method of computing basic EPS due to the existence of non-vested restricted stock awards with non-forfeitable rights to dividends or dividend equivalents (referred to as participating securities). Basic EPS is computed using the weighted average number of common shares outstanding during each of the respective years. Diluted EPS is computed using the weighted average number of common and common equivalent shares outstanding during each of the respective years using the more dilutive of either the treasury stock method or two-class method. The difference between basic and diluted shares, if any, largely results from common equivalent shares, which represents the dilutive effect of the assumed exercise of certain outstanding share options, the assumed vesting of restricted stock granted to employees and directors, or the satisfaction of certain necessary conditions for contingently issuable shares.

The following table sets forth the computation of our basic and diluted earnings (loss) per common share (in thousands, except per share amounts):


	Fiscal Years Ended
	July 2,			June 30,			June 30,
	2022			2021			2020
Net earnings/(loss)	$	(59,003	)	$	2,982		$	(166,328	)
Less: Income to participating securities		—			(135	)		—
Net earnings/(loss) attributable to common shares	$	(59,003	)	$	2,847		$	(166,328	)
Weighted average common shares outstanding—basic		84,885			60,584			45,208
Effect of dilutive stock equivalents		—			1,105			—
Weighted average common shares outstanding—dilutive		84,885			61,689			45,208
Net earnings/(loss) per common share—basic	$	(0.70	)	$	0.05		$	(3.68	)
Net earnings/(loss) per common share—diluted	$	(0.70	)	$	0.05		$	(3.68	)

For July 2, 2022, June 30, 2021, and 2020, options and awards representing the rights to purchase approximately 4.5 million, 2.8 million and 3.9 million weighted average shares respectively, were excluded in the dilutive earnings per share calculation because the assumed exercise of such options would have been anti-dilutive. On February 9, 2021, as part of the Rights Offering, the Company issued warrants to purchase 10 million shares of common stock with an exercise price of $1.65 and a five-year term, all which remained outstanding and anti-dilutive as of July 2, 2022.

See Note 12 below for a discussion of the Private Placement, pursuant to which the Company issued debt securities convertible for shares of the Company’s common stock. The Private Placement was completed on September 20, 2022.