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 both the

three

and

six

months ended

September 30, 2019

0.2

million shares related to stock options were

not

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

three

months ended

September 30, 2018

1.6

million shares were

not

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

0.3

million relate to outstanding stock options,

0.9

million relate to outstanding warrants and

0.4

million relate to outstanding unvested stock awards. For the

six

months ended

September 30, 2018

1.4

million shares were

not

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

0.2

million shares relate to outstanding stock options,

0.9

million shares relate to outstanding warrants and

0.3

million relate to outstanding unvested stock awards.

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

three

and

six

months ended

September 30, 2019

and

2018

(in thousands, except per share data):

	Three Months Ended September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Numerator:
Net (loss) income	$	(825	)	$	22,558		$	(4,364	)	$	17,821
Less: decrease in fair value of warrants, net of income tax		(1,145	)		0			(4,092	)		0
Plus: change in fair value due to exercise of warrants		0			0			83			0
Net income (loss) - diluted	$	(1,970	)	$	22,558		$	(8,373	)	$	17,821
Denominator:
Weighted-average shares of common stock outstanding		21,678			21,252			21,538			21,126
Weighted-average shares subject to repurchase		(1,022	)		(939	)		(952	)		(886	)
Shares used in per-share calculation ― basic		20,656			20,313			20,586			20,240
Common stock awards		0			268			0			320
Common stock warrants		67			0			150			0
Shares used in per-share calculation ― diluted		20,723			20,581			20,736			20,560
Net (loss) income per share ― basic	$	(0.04	)	$	1.11		$	(0.21	)	$	0.88
Net (loss) income per share ― diluted	$	(0.10	)	$	1.10		$	(0.40	)	$	0.87

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 Hudson Warrant of

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 Warrant. 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.