Earnings Per Share

9 Months Ended

Sep. 30, 2022

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, common stock subject to repurchase by the Company, options, warrants, and convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

The following table sets forth the details of basic and diluted earnings per share (unaudited, in thousands, except per share amounts):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021

Numerator:
Net loss	$	(5,812)	$	(18,607)	$	(21,307)	$	(27,035)
Denominator:
Weighted average shares outstanding – basic	55,722		53,939		55,140		50,147
Potential common shares – options / warrants (treasury stock method) and convertible notes (as if converted method)	—		—		—		—
Weighted average shares outstanding – diluted	55,722		53,939		55,140		50,147

Shares excluded (anti-dilutive)	8,097		1,279		2,182		1,333

Net loss per common share:
Basic	$	(0.10)	$	(0.34)	$	(0.39)	$	(0.54)
Diluted	$	(0.10)	$	(0.34)	$	(0.39)	$	(0.54)

The following shares were excluded from the computation of diluted net loss per share as the impact of including those shares would be anti-dilutive (unaudited, in thousands):


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2022	2021	2022	2021


Convertible notes, as if converted	2,460	—	823	—
Outstanding stock options	138	144	143	105
Outstanding warrants	5,499	1,135	1,215	1,228
Total anti-dilutive	8,097	1,279	2,182	1,333