Net Income (Loss) Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2021

Net Income (Loss) Per Share Attributable to Common Stockholders

Note 13. Net Income (Loss) Per Share Attributable to Common Stockholders

Basic and diluted net income (loss) per share is computed using the two-class method when it has issued shares that meet the definition of participating securities. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net income (loss) per share attributable to common stockholders is computed by dividing net income by the weighted-average number of common shares outstanding during the period and potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be anti-dilutive. Potential common stock equivalents consist of common stock issuable upon exercise of stock options and convertible preferred stock. For periods of net loss, basic and diluted earnings per share are the same as the effect of the assumed exercise of stock options and convertible preferred stock is anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the years ended December 31, 2021 and 2020 (in thousands, except share and per share data):


	For the Year Ended December 31,
	2021			2020
Net income (loss) available to common stockholders	$	(9,803	)	$	3,570
Less: undistributed income attributable to preferred stockholders		—			(2,962	)
Net income (loss) attributable to common stockholders	$	(9,803	)	$	608
Basic weighted-average common stock outstanding		16,087,653			3,599,232
Weighted-average effect of potentially dilutive securities:
Stock options		—			201,404
Dilutive weighted-average common stock		16,087,653			3,800,636
Net income (loss) per share attributable to common stockholders
Basic	$	(0.61	)	$	0.17
Diluted	$	(0.61	)	$	0.16

The following is a summary of the common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share, as their effect would be anti-dilutive:


	For the Year Ended December 31,
	2021		2020
Employee share-based awards to purchase common stock (1)		2,206,993		—
Convertible Series A preferred stock (2)		4,607,059		9,342,092
Total		6,814,052		9,342,092

(1) Excludes performance-based options that were not considered probable of vesting. See "Note 12—Stock-Based Compensation" for additional information.

(2) On June 28, 2021, all outstanding shares of the Company’s Series A preferred stock were converted into 17,512,685 shares of the Company’s common stock. See "Note 10—Convertible and Redeemable Preferred Stock" for additional information.