NET LOSS PER SHARE

3 Months Ended

Mar. 31, 2023

NET EARNINGS (LOSS) PER SHARE

We compute net income or loss per share based on the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the maximum dilution that would have resulted from incremental common shares issuable upon the exercise of stock options or vesting of RSUs and in some cases PSUs. In periods of net income, we compute the adjustment to the denominator of our dilutive net earnings per share calculation to include these stock options, RSUs, and PSUs, as applicable, using the treasury stock method. Regardless of the period resulting in net income or net loss, we exclude the adjustment to the denominator of our dilutive net earnings (loss) per share calculation to the extent that they are anti-dilutive.

For the three months ended March 31, 2023, we included an adjustment to the denominator of our dilutive earnings per share calculation for 773 options and RSUs but excluded 79 shares related to PSUs as these instruments would not be considered vested if we were at the end of the contingency period. For the three months ended March 31, 2022, we have excluded stock options and restricted stock units of 309 as they were anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per common share for the three months ended March 31 (in thousands, except per share amounts):


	Three Months Ended March 31,
	2023		2022
Basic:
Net income (loss)	$	339	$	(3,017)
Weighted-average shares of common stock outstanding	20,347		20,041
Basic earnings (loss) per share	$	0.02	$	(0.15)

Diluted:
Net income (loss)	$	339	$	(3,017)
Weighted-average shares of common stock outstanding	21,041		20,041
Diluted earnings (loss) per share	$	0.02	$	(0.15)