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

and

nine

months ended

December 31, 2020

1.1

million shares were

not

included in the calculation of diluted EPS. Of these,

1.0

million relate to shares tied to the derivative liability for which the contingency has

not

yet been met, and

0.1

million relate to outstanding stock options as they were considered anti-dilutive

For the

three

and

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.

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

three

and

nine

months ended

December 31, 2020

and

2019

(in thousands, except per share data):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2020			2019			2020			2019
Numerator:
Net loss	$	(7,933	)	$	(6,845	)	$	(15,062	)	$	(11,209	)
Less: decrease in fair value of warrants, net of income tax		—			(556	)		—			(4,648	)
Plus: change in fair value due to exercise of warrants		—			—			—			83
Net loss - diluted	$	(7,933	)	$	(7,401	)	$	(15,062	)	$	(15,774	)
Denominator:
Weighted-average shares of common stock outstanding		26,532			22,110			24,143			21,729
Weighted-average shares subject to repurchase		(1,062	)		(925	)		(1,132	)		(943	)
Shares used in per-share calculation ― basic		25,470			21,185			23,011			20,786
Common stock warrants		—			18			—			108
Shares used in per-share calculation ― diluted		25,470			21,203			23,011			20,894
Net loss per share ― basic	$	(0.31	)	$	(0.32	)	$	(0.65	)	$	(0.54	)
Net loss per share ― diluted	$	(0.31	)	$	(0.35	)	$	(0.65	)	$	(0.75	)

For the

three

and

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 warrants issued to Hudson Bay Capital (the “Hudson Warrants”) for

818,181

shares with an exercise 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 value 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.