Net Loss Per Share

12 Months Ended

Dec. 31, 2022

13.

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 (loss) 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.


	Year Ended
	December 31,
	2022			2021			2020
Numerator
Net income (loss)	$	293,156		$	76,713		$	(75,240	)
Less: undistributed earnings allocated to participating securities		(283	)		(4,569	)		-
Net income (loss) allocable to common stockholders, basic		292,873			72,144			(75,240	)
Add: undistributed earnings allocated to Series B and warrants		283			4,569			-
Less: undistributed earnings allocated to Series B and warrants		-			(4,190	)		-
Add: interest expense on convertible notes		5,044			3,168			-
Less: removal of change in fair value of warrant liability		(1,801	)		-			(4,124	)
Net income (loss) allocable to common stockholders, diluted	$	296,399		$	75,691		$	(79,364	)
Denominator
Weighted average shares used to compute net income (loss) allocable to common stockholders per share, basic		126,398			116,264			100,753
Effect of dilutive shares:
Stock-based compensation plans		2,774			3,075			-
Convertible Notes (as converted to common stock)		21,543			13,667			-
Effect of dilutive warrants		82			-			751
Weighted average shares used to compute net income (loss) allocable to common stockholders per share, diluted		150,797			133,006			101,504

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:


	December 31,
	2022		2021		2020
Outstanding securities not included in diluted net income (loss) allocable to common stockholders per share calculation (in thousands):
Stock options and stock awards		7,165		5,953		10,299
Series B Convertible Preferred Stock (as converted to common stock)		-		-		4,140
Warrants (as exercisable into common stock)		-		1,883		-