Net (Loss) Income Per Share

9 Months Ended

Oct. 03, 2023

5. NET (LOSS) INCOME PER SHARE

Basic and diluted net (loss) income per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Potentially dilutive shares are excluded from the computation of diluted net (loss) per share since they have an anti-dilutive effect, yet potentially dilutive shares are included in the computation of diluted net income per share. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and the restrictions on restricted stock units (“RSUs”) were to lapse. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net (loss) income per share calculation.

The following table presents a reconciliation of basic and diluted net (loss) income per share, including the number of dilutive equity awards included in the dilutive net (loss) income per share computation (in thousands):


	For the Thirteen Weeks Ended						For the Thirty-Nine Weeks Ended
	October 3, 2023			September 27, 2022			October 3, 2023		September 27, 2022
Numerator:
Net (loss) income	$	(3,804	)	$	(1,642	)	$	11,609	$	115
Denominator:
Weighted-average shares outstanding – basic		23,542			23,427			23,521		23,413
Dilutive effect of equity awards		—			—			465		215
Weighted-average shares outstanding – diluted		23,542			23,427			23,986		23,628

Net (loss) income per share:
Basic	$	(0.16	)	$	(0.07	)	$	0.49	$	0.00
Diluted	$	(0.16	)	$	(0.07	)	$	0.48	$	0.00

For the thirteen weeks ended October 3, 2023 and September 27, 2022, there were approximately 1.8 million and 2.1 million of equity awards and warrants, respectively, that were excluded from the calculation of diluted net (loss) income per share because they are anti-dilutive. For the thirty-nine weeks ended October 3, 2023 and September 27, 2022, there were approximately 1.8 million and 2.0 million of equity awards and warrants, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive.