Computation of Net Loss per Common Share

Basic net loss per share (“EPS”) is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance based restricted stock where the contingency was

not

met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive. For the

three

and

six

months ended

September 30, 2020

0.1

million shares related to outstanding stock options were

not

included in the calculation of diluted EPS as they were considered anti-dilutive

For the

three

and

six

months ended

September 30, 2019

0.2

million shares were

not

included in the calculation of diluted EPS as they were considered anti-dilutive.

The following table reconciles the numerators and denominators of the earnings per share calculation for the

three

and

six

months ended

September 30, 2020

and

2019

(in thousands, except per share data):

	Three Months Ended September 30,						Six Months Ended September 30,
	2020			2019			2020			2019
Numerator:
Net loss	$	(3,712	)	$	(825	)	$	(7,129	)	$	(4,364	)
Less: decrease in fair value of warrants, net of income tax		—			(1,145	)		—			(4,092	)
Plus: change in fair value due to exercise of warrants		—			—			—			83
Net income (loss) - diluted	$	(3,712	)	$	(1,970	)	$	(7,129	)	$	(8,373	)
Denominator:
Weighted-average shares of common stock outstanding		23,057			21,678			22,943			21,538
Weighted-average shares subject to repurchase		(1,197	)		(1,022	)		(1,168	)		(952	)
Shares used in per-share calculation ― basic		21,860			20,656			21,775			20,586
Common stock warrants		—			67			—			150
Shares used in per-share calculation ― diluted		21,860			20,723			21,775			20,736
Net loss per share ― basic	$	(0.17	)	$	(0.04	)	$	(0.33	)	$	(0.21	)
Net loss per share ― diluted	$	(0.17	)	$	(0.10	)	$	(0.33	)	$	(0.40	)

For the

three

and

six

months ended

September 30, 2019

, the diluted net loss per common share amounts under the treasury stock method were calculated based on the dilutive effect of the total number of shares of common stock related to the warrants issued to Hudson Bay Capital (the “Hudson Warrants”) for

818,181

shares with an exercise price of

$7.81.

For the

three

and

six

month periods ended

September 30, 2019,

the average stock price was

$8.50

and

$9.56

respectively, providing

66,638

and

150,025

dilutive shares respectively, for the Hudson Warrants. The decrease in the fair value of the warrant liability of

$1.1

million and

$4.1

million, respectively, is included in the net loss available to common shareholders for the diluted net loss per common share amount when the impact is dilutive.