Net Loss Per Share

9 Months Ended

Sep. 30, 2022

7. Net Loss Per Share

We compute loss per share of our Common Stock and Series A Preferred Stock using the two-class method. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. We consider our Series A Preferred Stock to be a participating security, as its holders are entitled to fully participate in any dividends or other distributions declared or paid on our Common Stock on an as-converted basis.

The following table sets forth the computations of loss per share (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

Numerator:
Net Loss	$	(6,513)	$	(11,015)	$	(45,737)	$	(50,741)

Preferred stock dividends and accretion	(546)		—		(546)		—
Net loss attributable to common stockholders	$	(7,059)	$	(11,015)	$	(46,283)	$	(50,741)
Denominator:
Weighted–average common shares outstanding, basic and diluted	31,655,206		30,428,675		31,401,463		30,167,171
Net loss per common share, basic and diluted	$	(0.22)	$	(0.36)	$	(1.47)	$	(1.68)

Due to the net losses for the three and nine months ended September 30, 2022 and September 30, 2021, respectively, basic and diluted loss per share were the same. The Company adopted ASU 2020-06 on January 1, 2022 as detailed in “Note 1. Basis of Presentation and Summary of Significant Accounting Policies—Recent Accounting Pronouncements—Recently issued accounting pronouncements - Adopted.” As such, the Company is required to use the application of the if-converted method for calculating diluted earnings per share on our Series A Preferred Stock. The Company applies the treasury stock method for calculating diluted earnings per share on our stock options, restricted stock awards, restricted stock units and performance restricted stock units.

The following table sets forth the anti–dilutive common share equivalents as of September 30, 2022 and September 30, 2021:


	September 30,
	2022	2021

Stock options	155,895	242,984
Restricted stock awards(1)	—	1,000
Restricted stock units	1,442,886	2,034,186
Performance restricted stock units	93,750	63,537
Series A Preferred Stock on an as-converted basis(2)	6,602,643	—
Total anti–dilutive common share equivalents	8,295,174	2,341,707

(1) All outstanding restricted stock awards became fully vested as of December 31, 2021.

(2) Per ASU 2020-06, the Company is applying the if-converted method to calculated diluted earnings per share. As of September 30, 2022, the Series A Preferred Stock plus accumulated dividends totaled $115.5 million. The Series A Preferred Stock has a conversion price of $17.50 per share, as detailed in “Note 9. Series A Preferred Stock”