Earnings Per Share

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income applicable to Brilliant Earth Group, Inc. by the weighted average shares of Class A common stock outstanding (and Class D common stock if outstanding) during the period. Diluted earnings per share is computed by adjusting the net income available to Brilliant Earth Group, Inc. and the weighted average shares outstanding to give effect to potentially dilutive securities. Shares of Class B and Class C common stock are not entitled to receive any distributions or dividends and are therefore excluded from this presentation since they are not participating securities.

All earnings prior to September 23, 2021, the date of the IPO, were entirely allocable to the non-controlling interest and, as a result, earnings per share information is not applicable for reporting periods prior to this date. Consequently, only earnings per share for net income for periods subsequent to September 22, 2021 are presented.

Basic and diluted earnings per share of common stock for the period from September 23, 2021 to December 31, 2021 have been computed as follows (in thousands, except share and per share amounts):


	For the period September 23, 2021 to December 31, 2021
Numerator:
Net income attributable to Brilliant Earth Group, Inc., BASIC	$	1,528
Add: Net income impact from assumed redemption of all LLC Units to common stock	10,736
Less: Income tax expense on net income attributable to NCI at 25.7%	(2,755)
Net income attributable to Brilliant Earth Group, Inc., after adjustment for assumed conversion, DILUTED	$	9,509

Denominator:
Weighted average shares of common stock outstanding, BASIC	9,590,443
Dilutive effects of:
Vested LLC Units that are exchangeable for common stock	85,105,060
LLC Units, RSUs and stock options	2,045,918
Weighted average shares of common stock outstanding, DILUTED	96,741,421

BASIC earnings per share	$	0.16
DILUTED earnings per share	$	0.10

Net income attributable to the non-controlling interest added back to net income in the fully dilutive computation has been adjusted for income taxes which would have been expensed had the income been recognized by Brilliant Earth Group, Inc., a taxable entity. The weighted average common shares outstanding in the diluted computation per share assumes all outstanding LLC Units are converted and the Company will elect to issue shares of common stock upon redemption rather than cash-settle.

For the period from September 23, 2021 to December 31, 2021, the dilutive impact of LLC Units convertible into common stock were included in the computation of diluted earnings per share under the if-converted method; the dilutive impact of unvested LLC Units, RSUs and stock options were included using the treasury stock method.