Net (Loss) Income Per Share

9 Months Ended

Sep. 30, 2021

10. Net (Loss) Income Per Share

We compute net (loss) income 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 (loss) income in determining net (loss) income attributable to common stockholders.

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

For the calculation of diluted net (loss) income per share, net (loss) income attributable to common stockholders for basic net (loss) income 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 (loss) income per share attributable to common stockholders is computed by dividing the resulting net (loss) income 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 (loss) income per share computations for our common stock are calculated as follows (in thousands, except per share amounts):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Numerator
Net (loss) income	$	(28,430	)	$	4,401		$	(23,066	)	$	(59,773	)
Less: undistributed earnings allocated to participating securities		-			(367	)		-			-
Net (loss) income attributable to common stockholders, basic	$	(28,430	)	$	4,034		$	(23,066	)	$	(59,773	)
Less: Removal of change in fair value of warrant liability		-			(21,245	)		-			(4,200	)
Net loss attributable to common stockholders, diluted	$	(28,430	)	$	(17,211	)	$	(23,066	)	$	(63,973	)
Denominator
Weighted average common stock outstanding, basic		116,903			109,816			114,540			97,589
Effect of dilutive shares:
Effect of dilutive warrants		-			2,157			-			988
Weighted average common stock outstanding, diluted		116,903			111,973			114,540			98,577

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


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Outstanding securities not included in diluted net (loss) income per share calculation:
Stock options and stock awards		5,924		10,984		6,274		10,984
Series B Convertible Preferred Stock (as converted to common stock)		-		4,140		-		4,140
Warrants (as exercisable into common stock)		4,895		-		4,895		-
Convertible Notes (as converted to common stock)		21,543		-		21,543		-
Total		32,362		15,124		32,712		15,124