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EARNINGS PER SHARE (Tables) | 6 Months Ended
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Jun. 30, 2022
Earnings Per Share [Abstract] |
Computation of basic and diluted earnings per share | The following table sets forth the computation of net income used to compute basic and diluted net earnings per share of Class A common stock for the three months and six months ended June 30, 2022. No earnings per share are presented for the periods ended June 30, 2021 as only the Class B common shares would have been outstanding in historical periods pursuant to the reverse recapitalization and the Class B common shares do not participate in the Company's income or loss and are therefore not participating securities.
|  | Three Months Ended June 30, 2022 |  | Six Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |
Basic and diluted: |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 60,658 |  |  | $ | 87,566 |  |  |  |  |  |  |  |  |  |
Less: Net income attributable to non-controlling interest |  | (52,184) |  |  | (75,628) |  |  |  |  |  |  |  |  |  |
Net income attributable to Class A Common Stockholders |  | $ | 8,474 |  |  | $ | 11,938 |  |  |  |  |  |  |  |  |  |
Plus: adjustment due to net effect of stock options and exchangeable notes to net income |  | 8,236 |  |  | 12,267 |  |  |  |  |  |  |  |  |  |
Net income attributable to Class A Common Stockholders after adjustment |  | $ | 16,710 |  |  | $ | 24,205 |  |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding used in computing net income per share - basic |  | 15,051,732 |  |  | 14,992,612 |  |  |  |  |  |  |  |  |  |
Plus: net effect of dilutive stock options and exchangeable notes |  | 17,311,560 |  |  | 17,348,682 |  |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding used in computing net income per share—diluted |  | 32,363,292 |  |  | 32,341,294 |  |  |  |  |  |  |  |  |  |
Net income per share—basic |  | $ | 0.56 |  |  | $ | 0.80 |  |  |  |  |  |  |  |  |  |
Net income per share—diluted |  | $ | 0.52 |  |  | $ | 0.75 |  |  |  |  |  |  |  |  |  |
Antidilutive shares excluded from calculation | The following amounts were not included in the calculation of net earnings per diluted share because their effects were anti-dilutive:
|  | Three Months Ended June 30, 2022 |  | Six Months Ended June 30, 2022 |  |  |  |
Potentially dilutive securities: |  |  |  |  |  |  |  |
Warrants |  | 22,415,400 |  |  | 22,415,400 |  |  |  |  |
Class B common shares |  | 60,986,800 |  |  | 60,986,800 |  |  |  |  |
Earnout consideration shares |  | 7,500,000 |  |  | 7,500,000 |  |  |  |  |
Stock options and restricted common shares |  | 3,897,048 |  |  | 3,597,048 |  |  |  |  |
Impact of change in accounting policy | Below is a summary of the impact of the change in accounting policy for the six months and the three months ended June 30, 2022:
|  | Six-month period ended June 30, 2022 |  |  |  | Six-month period ended June 30, 2022
Income Statement Items: |  | Under No-allocation method |  | Adjustment |  | As reported
Provision for income taxes |  | $ | 948 |  |  | $ | 2,397 |  |  | $ | 3,345 |
Net income |  | 89,963 |  |  | (2,397) |  |  | 87,566 |
Net income attributable to CompoSecure, Inc. |  | 44,050 |  |  | (32,112) |  |  | 11,938 |
Net income attributable to redeemable non-controlling interests |  | 45,913 |  |  | 29,715 |  |  | 75,628 |
Net income per share attributable to Class A common stockholders - basic |  | $ | 2.94 |  |  | $ | (2.14) |  |  | $ | 0.80 |
Net income per share attributable to Class A common stockholders - diluted |  | $ | 0.97 |  |  | $ | (0.22) |  |  | $ | 0.75 |
|  | Three-month period ended June 30, 2022 |  |  |  | Three-month period ended June 30, 2022
Income Statement Items: |  | Under No-allocation method |  | Adjustment |  | As reported
Income tax expense |  | $ | 405 |  |  | $ | 2,397 |  |  | $ | 2,802 |
Net income |  | 63,055 |  |  | (2,397) |  |  | 60,658 |
Net income attributable to CompoSecure, Inc. |  | 38,437 |  |  | (29,963) |  |  | 8,474 |
Net income attributable to redeemable non-controlling interests |  | 24,619 |  |  | 27,565 |  |  | 52,184 |
Net income per share attributable to Class A common stockholders - basic |  | $ | 2.55 |  |  | $ | (1.99) |  |  | $ | 0.56 |
Net income per share attributable to Class A common stockholders - diluted |  | $ | 0.68 |  |  | $ | (0.16) |  |  | $ | 0.52 |
|  | June 30, 2022 |  |  |  | June 30, 2022
Balance Sheet Items: |  | Under No-allocation method |  | Adjustment |  | As reported
Deferred tax asset |  | $ | 25,098 |  |  | $ | (321) |  |  | $ | 24,777 |
Retained earnings |  | (962,502) |  |  | (2,397) |  |  | (964,899) |
Deferred tax asset was adjusted cumulatively in the period ended June 30, 2022 due to the change in accounting policy. The Company determined that the effect on deferred tax assets and provision for income taxes for the periods ended March 31, 2022 and December 31, 2021 were immaterial and therefore were not adjusted retrospectively. Below is a summary of the impact of the change in accounting policy for the prior periods as indicated:
|  | Three-month period ended March 31, 2022 |  |  |  | Three-month period ended March 31, 2022
Income Statement Items: |  | As reported |  | Adjustment |  | Under re-allocation method
Net income per share attributable to Class A common stockholders - basic |  | $ | 0.32 |  |  | $ | (0.09) |  |  | $ | 0.23 |
Net income per share attributable to Class A common stockholders - diluted |  | $ | 0.16 |  |  | $ | 0.07 |  |  | $ | 0.23 |
Net income attributable to CompoSecure, Inc. |  | 4,741 |  |  | (1,347) |  |  | 3,394 |
Net income attributable to redeemable non-controlling interests |  | 22,167 |  |  | 1,347 |  |  | 23,514 |
|  | Year ended December 31, 2021 |  |  |  | Year ended December 31, 2021
Income Statement Items: |  | As reported |  | Adjustment |  | Under re-allocation method
Net income per share attributable to Class A common stockholders - basic (1) |  | $ | 0.91 |  |  | $ | (0.70) |  |  | $ | 0.21 |
Net income per share attributable to Class A common stockholders - diluted (1) |  | $ | 0.14 |  |  | $ | (0.02) |  |  | $ | 0.12 |
Net income attributable to CompoSecure, Inc. (2) |  | 13,512 |  |  | (10,358) |  |  | 3,154 |
Net income attributable to redeemable non-controlling interests |  | 69,902 |  |  | 10,358 |  |  | 80,260 |
(1) The amounts for the year ended December 31, 2021 represent basic and diluted net income per share of Class A common stock for the prorated period from December 27, 2021 through December 31, 2021, the period following the Business Combination described in Note 1. (2) Net income attributable to CompoSecure, Inc. for the year ended December 31, 2021 was equal to net income for the period subsequent to the Business Combination for the prorated period from December 27, 2021 through December 31, 2021. Net income attributable to non-controlling for the year ended December 31, 2021 is equal to net income for the period from January 1, 2021 through December 31, 2021.

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