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

months ended

December 31, 2019

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

nine

months ended

December 31, 2019

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

months ended

December 31, 2018

0.5

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, and

0.2

million relate to outstanding unvested stock awards. For the

nine

months ended

December 31, 2018

1.1

million shares were

not

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

0.3

million shares relate to outstanding stock options,

0.6

million shares relate to outstanding warrants and

0.2

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

nine

months ended

December 31, 2019

and

2018

(in thousands, except per share data):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2019			2018			2019			2018
Numerator:
Net (loss) income	$	(6,845	)	$	17,293		$	(11,209	)	$	35,114
Less: decrease in fair value of warrants, net of income tax		(556	)		0			(4,648	)		0
Plus: change in fair value due to exercise of warrants		0			0			83			0
Net income (loss) - diluted	$	(7,401	)	$	17,293		$	(15,774	)	$	35,114
Denominator:
Weighted-average shares of common stock outstanding		22,110			21,396			21,729			21,216
Weighted-average shares subject to repurchase		(925	)		(977	)		(943	)		(916	)
Shares used in per-share calculation ― basic		21,185			20,419			20,786			20,300
Common stock awards		0			445			0			238
Common stock warrants		18			0			108			0
Shares used in per-share calculation ― diluted		21,203			20,864			20,894			20,538
Net (loss) income per share ― basic	$	(0.32	)	$	0.85		$	(0.54	)	$	1.73
Net (loss) income per share ― diluted	$	(0.35	)	$	0.83		$	(0.75	)	$	1.71

For the

nine

months ended

December 31, 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 exerc

ise price of

$7.81.

For the

three

and

nine

month periods ended

December 31, 2019,

the average stock price was

$8.19

and

$9.29

respectively through

November 13, 2019

when the Hudson Warrant was partially exercised for

786,000

shares, providing

37,962

and

130,345

dilutive shares respectively. The increase of

$0.6

million and the decrease of

$4.6

million in the fair valu

e of the warrant liability, 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.