Net Loss Per Share

6 Months Ended

Jun. 30, 2024

Note 7: Net Loss Per Share

The Company computes net loss per share of Class A and Class B common stock using the two class method. Under the provisions of the two class method, basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net loss per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net loss per share of Class A common stock does not assume the conversion of those shares.

In accordance with the two class method, the undistributed earnings (losses) for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and the restricted shares as if the earnings for the year had been distributed. Considering the terms of the Company’s charter which provides that, if and when dividends are declared on its common stock in accordance with Delaware General Corporation Law, equivalent dividends shall be paid with respect to the shares of Class A common stock and Class B common stock and that both classes of common stock have identical dividend rights and would share equally in the Company’s net assets in the event of liquidation, the Company has allocated undistributed earnings (losses) on a proportionate basis.

Instruments granted in unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities prior to vesting. As such, the Company’s restricted stock awards are considered participating securities for purposes of calculating earnings per share. Under the two class method, dividends paid on unvested restricted stock are allocated to these participating securities and therefore impact the calculation of amounts allocated to common stock.

The following table presents the computation of basic net loss per share applicable to common stockholders for the periods ended:


	Six Months Ended June 30,
	2023						2024
(In Thousands, Except Per Share Amounts)	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(792	)	$	(6,428	)	$	(239	)	$	(1,967	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		4,661			37,837			4,661			38,398
Basic net loss per share applicable to common stockholders	$	(0.17	)	$	(0.17	)	$	(0.05	)	$	(0.05	)


	Three Months Ended June 30,
	2023						2024
(In Thousands, Except Per Share Amounts)	Class A			Class B			Class A			Class B
Basic net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(301	)	$	(2,443	)	$	(82	)	$	(674	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		4,661			37,840			4,661			38,403
Basic net loss per share applicable to common stockholders	$	(0.06	)	$	(0.06	)	$	(0.02	)	$	(0.02	)

The following table presents the computation of diluted net loss per share applicable to common stockholders for the periods ended:


	Six Months Ended June 30,
	2023						2024
(In Thousands, Except Per Share Amounts)	Class A			Class B			Class A			Class B
Diluted net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(792	)	$	(6,428	)	$	(239	)	$	(1,967	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(792	)		—			(239	)
Diluted net loss applicable to common stockholders:	$	(792	)	$	(7,220	)	$	(239	)	$	(2,206	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		4,661			37,837			4,661			38,398
Conversion of Class A to Class B common shares outstanding		—			4,661			—			4,661
Weighted average number of shares outstanding used to calculate diluted net loss per share		4,661			42,498			4,661			43,059
Diluted net loss per share applicable to common stockholders	$	(0.17	)	$	(0.17	)	$	(0.05	)	$	(0.05	)


	Three Months Ended June 30,
	2023						2024
(In Thousands, Except Per Share Amounts)	Class A			Class B			Class A			Class B
Diluted net loss per share:
Numerator:
Net loss applicable to common stockholders	$	(301	)	$	(2,443	)	$	(82	)	$	(674	)
Reallocation of net loss for Class A shares as a result of conversion of Class A to Class B shares		—			(301	)		—			(82	)
Diluted net loss applicable to common stockholders:	$	(301	)	$	(2,744	)	$	(82	)	$	(756	)
Denominator:
Weighted average number of shares outstanding used to calculate basic net loss per share		4,661			37,840			4,661			38,403
Conversion of Class A to Class B common shares outstanding		—			4,661			—			4,661
Weighted average number of shares outstanding used to calculate diluted net loss per share		4,661			42,501			4,661			43,064
Diluted net loss per share applicable to common stockholders	$	(0.06	)	$	(0.06	)	$	(0.02	)	$	(0.02	)

For the three and six months ended June 30, 2023 and 2024, the computation of diluted net loss per share excludes the following because their effect would be anti-dilutive (in thousands):

•

As of June 30, 2023 and 2024, outstanding options to acquire 4,503 and 5,230 shares, respectively of Class B common stock.

•

As of June 30, 2023 and 2024, 989 and 616 shares of unvested Class B restricted common shares, respectively.

•

As of June 30, 2023 and 2024, 279 and 44 restricted stock units, respectively.