Earnings Per Common Share ("EPS")

9 Months Ended

Sep. 30, 2023

13. Earnings per Common Share (“EPS”)

Basic EPS excludes dilution for potentially dilutive securities and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution under the treasury method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and the if-converted

method for convertible debt securities. For periods where the Company has presented a net loss, potentially dilutive securities are excluded from the computation of diluted EPS as they would be antidilutive.

The following tables summarize the components of the basic and diluted EPS computations (in thousands, except per share amounts):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2023		2022			2023			2022
EPS — basic and diluted:
Net income (loss) (numerator)	$	1,721	$	(14,432	)	$	(13,339	)	$	(69,453	)
Weighted average common shares (denominator)		268,732		259,300			266,126			254,974
Net income (loss) per share	$	0.01	$	(0.06	)	$	(0.05	)	$	(0.27	)
EPS — diluted:
Net income (loss) (numerator)	$	3,578	$	(14,432	)	$	(13,339	)	$	(69,453	)
Weighted average common shares		268,732		259,300			266,126			254,974
Effect of dilutive securities — common shares issuable		55,038		—			—			—
Adjusted weighted average common shares (denominator)		323,770		259,300			266,126			254,974
Net income (loss) per share	$	0.01	$	(0.06	)	$	(0.05	)	$	(0.27	)

For the three months ended September 30, 2023, diluted net income per share excluded the weighted average effect of 9.4 million shares of RSUs and Market RSUs and 2.0 million options and PNQs as they were antidilutive. For the nine months ended September 30, 2023, diluted net loss per share excluded the weighted average effect of 7.7 million shares of RSUs and Market RSUs, 12.1 million options and PNQs, and 3.4 million and 44.1 million shares for the conversion of our Mann Group convertible notes and Senior convertible notes, respectively, as the shares were antidilutive due to our net loss.

Potentially dilutive securities outstanding which were considered antidilutive for the three and nine months ended September 30, 2022 are summarized as follows (in shares):


	Nine Months Ended September 30,
	2022
Senior convertible notes		44,120,463
RSUs and Market RSUs(1)		14,784,399
Common stock options and PNQs		9,516,375
Mann Group convertible notes		3,370,000
Employee stock purchase plan		124,904
Total shares		71,916,141

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(1)

Market RSUs issued in 2020, 2021, and 2022 are included at the share delivery of 300%, 0%, and 100%, respectively, in accordance with a valuation assessment obtained as of September 30, 2022.