Net Income Per Share

9 Months Ended

Oct. 01, 2024

5. NET 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 income (loss) 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 1, 2024			October 3, 2023			October 1, 2024		October 3, 2023
Numerator:
Net (loss) income	$	(2,927	)	$	(3,804	)	$	21,953	$	11,609
Denominator:
Weighted-average shares outstanding – basic		23,111			23,542			23,246		23,521
Dilutive effect of equity awards		—			—			618		465
Weighted-average shares outstanding – diluted		23,111			23,542			23,864		23,986

Net (loss) income per share:
Basic	$	(0.13	)	$	(0.16	)	$	0.94	$	0.49
Diluted	$	(0.13	)	$	(0.16	)	$	0.92	$	0.48

For each of the thirteen weeks ended October 1, 2024 and October 3, 2023, there were approximately 1.0 million and 1.8 million, respectively, of equity awards that were excluded from the calculation of diluted net income (loss) per share because they were anti-dilutive. For each of the thirty-nine weeks ended October 1, 2024 and October 3, 2023, there were approximately 1.0 million and 1.8 million, respectively, of equity awards that were excluded from the calculation of diluted net income per share because they were anti-dilutive.