Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2021

Net Income (Loss) Per Common Share In accordance with ASC 260, Earnings Per Share, a company that has participating securities is required to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings between the holders of common stock and a company’s participating securities. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options, warrants, and convertible preferred stock.

The following table summarizes the computation of basic and diluted net income (loss) per common share.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Income (loss) from continuing operations	$	(3,377)	$	1,640	$	(13,681)	$	(124,003)
Less: Preferred stock cumulative dividends and deemed dividends	(2,314)		(3,139)		(19,054)		(9,133)



Numerator for basic and diluted income (loss) from continuing operations per common share (1)	(5,691)		(1,499)		(32,735)		(133,136)
Income (loss) from discontinued operations, net of tax (Note 2)	—		20,330		—		(123,966)



Numerator for basic and diluted undistributed net loss per common share (1)	$	(5,691)	$	18,831	$	(32,735)	$	(257,102)

Denominator:
Weighted average common shares outstanding	43,034		42,746		42,980		42,696
Adjustment for unvested restricted common stock	(476)		(544)		(459)		(526)
Adjustment for 2021 Warrants outstanding (2)	1,897		—		1,341		—
Shares used to calculate income (loss) per share, basic and diluted	44,455		42,202		43,862		42,170



Per common share net income (loss):
Basic loss from continuing operations per common share	$	(0.13)	$	(0.04)	$	(0.75)	$	(3.16)
Basic income (loss) from discontinued operations per common share	—		0.49		—		(2.94)
Basic income (loss) per common share	$	(0.13)	$	0.45	$	(0.75)	$	(6.10)
Diluted loss from continuing operations per common share	$	(0.13)	$	(0.04)	$	(0.75)	$	(3.16)
Diluted income (loss) from discontinued operations per common share	—		0.49		—		(2.94)
Diluted income (loss) per common share	$	(0.13)	$	0.45	$	(0.75)	$	(6.10)
Cash dividends declared per common share	$	—	$	—	$	—	$	—

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(1) Preferred Stock does not participate in losses.

(2) Weighted average 2021 Warrants outstanding are included in shares outstanding for calculation of basic earnings per share because they are exercisable at an exercise price of $0.01 per share, subject to certain adjustments (see Note 17).

The following table presents securities that could be potentially dilutive in the future that were excluded from the calculation of diluted net loss per common share because they had an anti-dilutive effect.


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Options	752	875	812	875
2019 Warrants	1,500	1,500	1,500	1,500
Series B Preferred Stock, as-converted	—	23,573	—	23,573
	2,252	25,948	2,312	25,948

We have elected to allocate undistributed income to participating securities based on year-to-date results. As there was no undistributed income for the three and nine months ended September 30, 2021, no such allocation was necessary. In addition, given the undistributed loss from continuing operations in the three and nine months ended September 30, 2021 and 2020, options and the 2019 Warrants are considered anti-dilutive and were excluded from the calculation of diluted net loss per share. Stock options excluded from the calculations of diluted net loss per share had a per share exercise price ranging from $7.93 to

$25.16 for the three months ended September 30, 2021, and $7.93 to $25.16 for three months ended September 30, 2020. Stock options excluded from the calculations of diluted net income (loss) per share had a per share exercise price ranging from $7.93 to $25.16 for the nine months ended September 30, 2021, and $7.93 to $25.16 for nine months ended September 30, 2020. The 2019 Warrants excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2021, had a per share exercise price of $11.49. Series B Preferred Stock excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2020, was calculated on an as-converted basis.