Net Income (Loss) Per Share

3 Months Ended

Sep. 30, 2020

NET INCOME (LOSS) PER SHAREThe Company calculates net income per share as defined by ASC Topic 260, “Earnings per Share”. Basic net income per share (“Basic EPS”) is computed by dividing net income attributable to common shareholders by the weighted-average common stock outstanding during the respective period. Net income attributable to common shareholders is computed by deducting both the dividends declared in the period on preferred stock and the dividends accumulated for the period on cumulative preferred stock from net income. Diluted net income per share (“Diluted EPS”) is computed by dividing net income attributable to common and common equivalent shareholders by the total of the weighted-average common stock outstanding and common equivalent shares outstanding during the respective period. For the purpose of calculating the Company’s Diluted EPS, common equivalent shares outstanding include the conversion of the preferred stock on an 8:1 ratio, as the rights and privileges dictate as such and common shares issuable upon the exercise of outstanding employee stock options. The number of common equivalent shares outstanding has been determined in accordance with the if-converted method for the preferred stock and the treasury stock method for employee stock options to the extent they are dilutive. Under the treasury stock method, the exercise price paid by the option holder and future share-based compensation expense that the Company has not yet recognized are assumed to be used to repurchase shares.

The following table sets forth the computation of net income (loss) per share for the three months ended September 30:


(in thousands, except per share amounts)	2020		2019
Basic:
Numerator:
Net income (loss)	$	837	$	(1,688)
Less: dividends declared on Series A, B, C & D preferred stock	—		—
Less: cumulative dividends on Series D preferred stock	—		(3,025)
Net income (loss) attributable to common shareholders	837		(4,713)
Denominator:
Weighted-average common stock outstanding	162,448		87,516
Net income (loss) per share—basic:	$	0.01	$	(0.05)
Diluted:
Numerator:
Net income (loss) attributable to common shareholders	$	837	$	(4,713)
Add: dividends declared on Series A, B & C preferred stock	—		—
Add: dividends declared on Series D preferred stock	—		—
Add: cumulative dividends on Series D preferred stock(2)	—		—
Add: mark-to-market adjustment on earnout liability(1)	—		—
Net income (loss) attributable to common and common equivalent shareholders	837		(4,713)
Denominator:
Weighted-average common stock outstanding	162,448		87,516
Series A, B & C preferred stock outstanding(2)	—		—
Series D preferred stock outstanding(2)	—		—
Stock options outstanding to purchase shares of common stock(2)	2,744		—
Contingently issuable shares(1)	—		—
Total common and common equivalent shares outstanding	165,192		87,516
Net income (loss) per share—diluted:	$	0.01	$	(0.05)

(1) Excluded from the computation of net income per share-diluted for the three months ended September 30, 2020, because the effect would have been anti-dilutive.

(2) Excluded from the computation of net loss per share-diluted for the three months ended September 30, 2019, because the effect would have been anti-dilutive.

The number of outstanding anti-dilutive shares that were excluded from the computation of diluted net income (loss) per share consisted of the following for the three months ended September 30:


(in thousands)	2020	2019
Series A, B & C preferred stock outstanding	—	12,071
Series D preferred stock outstanding	—	32,000
Stock options outstanding to purchase shares of common stock	—	5,972
Contingently issuable shares	551	—
Total	551	50,043