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Note 5 - Computation of Net Loss Per Common Share

6 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

5. Computation of Net Income (Loss) per Common Share

Basic net income (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net income 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 September 30, 2024, 535,001 shares were not included in the calculation of diluted EPS. Of these, 526,333 were shares of performance-based restricted stock where the contingency was not met. Of the remaining shares, 652 shares relate to outstanding stock awards that were considered anti-dilutive, and 8,016 shares related to ESPP shares and were excluded as they were considered anti-dilutive. For the six months ended September 30, 2024, 479,341 shares were not included in the calculation of diluted EPS. Of these, 469,667 were shares of performance-based restricted stock where the contingency was not met. Of the remaining shares, 326 shares relate to outstanding stock awards that were considered anti-dilutive, and 9,348 shares related to ESPP shares and were excluded as they were considered anti-dilutive. For each of the three and six months ended September 30, 2023, 1,036,206 shares were not included in the calculation of diluted EPS. Of these, 1,000,000 relate to shares associated with the contingent consideration derivative liability for which the contingency has not yet been met, and 36,206 relate to outstanding stock options as they were considered anti-dilutive.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and six months ended September 30, 2024 and 2023 (in thousands, except per share data):

		*Three Months Ended September 30,*								*Six Months Ended September 30,*
		*2024*				*2023*				*2024*				*2023*
Numerator:
Net income (loss)		$	4,887			$	(2,485	)		$	2,363			$	(7,883	)
Denominator:
Weighted-average shares of common stock outstanding			37,931				30,283				37,463				29,996
Weighted-average shares subject to repurchase			(979	)			(1,455	)			(1,146	)			(1,451	)
Shares used in per-share calculation ― basic			36,952				28,828				36,317				28,545
Shares used in per-share calculation ― diluted			37,499				28,828				36,951				28,545
Net income (loss) per share ― basic		$	0.13			$	(0.09	)		$	0.07			$	(0.28	)
Net income (loss) per share ― diluted		$	0.13			$	(0.09	)		$	0.06			$	(0.28	)