Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2021

10. Net Income (Loss) Per Share

We compute net income (loss) per share of common stock using the two-class method required for participating securities. We consider Series B Preferred Stocks and warrants to be participating securities because holders of such shares have dividend rights in the event of our declaration of a dividend for common shares. Undistributed earnings allocated to participating securities are subtracted from net income (loss) in determining net income attributable to common stockholders.

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of our common stock outstanding.

For the calculation of diluted net income (loss) per share, net income (loss) attributable to common stockholders for basic net income (loss) per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans and change in fair value of warrant liability. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the resulting net income (loss) attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding.

The numerators and denominators of the basic and diluted net income (loss) per share computations for our common stock are calculated as follows (in thousands, except per share amounts):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Numerator
Net income (loss)	$	4,473		$	(51,579	)	$	5,364		$	(64,174	)
Less: undistributed earnings allocated to participating securities		(333	)		-			(410	)		-
Net income (loss) attributable to common stockholders, basic	$	4,140		$	(51,579	)	$	4,954		$	(64,174	)
Less: Removal of change in fair value of warrant liability		(2,097	)		-			-			-
Net income (loss) attributable to common stockholders, diluted	$	2,043		$	(51,579	)	$	4,954		$	(64,174	)
Denominator
Weighted average common stock outstanding, basic		114,629			97,339			113,339			91,408
Effect of dilutive shares:
Stock-based compensation plans		1,630			-			1,639			-
Effect of dilutive warrants		2,571			-			-			-
Weighted average common stock outstanding, diluted		118,830			97,339			114,978			91,408

The following were excluded from the calculation of diluted net income (loss) per share as the effect of their inclusion would have been anti-dilutive.

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Outstanding securities not included in diluted net income (loss) per share calculation (in thousands):
Stock options and stock awards		6,991		11,276		8,476		11,276
Series B Convertible Preferred Stock (as converted to common stock)		4,140		4,140		4,140		4,140
Warrants (as exercisable into common stock)		-		5,841		2,474		5,841
Convertible Notes (as converted to common stock)		11,363		-		5,713		-
Total		22,494		21,257		20,803		21,257