Net Income (Loss) Per Common Share

6 Months Ended

Jul. 02, 2021

2. Net Income (loss) per Common Share

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

The following table reconciles basic and dilutive weighted average common shares:

	Quarter Ended				Six Months Ended
	July 2,		June 26,		July 2,		June 26,
	2021		2020		2021		2020
Basic weighted average common shares outstanding		30,093,726		30,015,038		30,150,608		29,952,090
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		490,685		—		377,447		111,785
Common stock issuable upon the exercise of stock options and SARs		2,385,533		—		2,341,500		2,237,057
Dilutive weighted average common shares outstanding		32,969,944		30,015,038		32,869,555		32,300,932

Approximately 2 thousand shares and 3 thousand shares of common stock equivalents were excluded from the computations of diluted net income (loss) per common share for the quarter and six months ended July 2, 2021, respectively, as compared to 23 thousand shares and 16 thousand shares for the quarter and six months ended June 26, 2020, respectively, as inclusion would have had an anti-dilutive effect on diluted net income (loss) per common share.