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Net Loss per Common Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Loss per Common Share

Note 13 – Net Loss per Common Share

Basic net loss per share excludes dilution and is computed by dividing net loss attributable to the common stockholders by the weighted-average shares outstanding during the period. Diluted net loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings or losses of the Company.

In connection with the acquisition of Indi in 2018, the Company recorded contingent consideration (See Note 4 – Fair Value) for amounts contingently payable to Indi's selling shareholders pursuant to the terms of the Indi APA. The contingent consideration arrangement requires additional consideration to be paid by the Company to Indi upon attainment of a three-consecutive month gross margin target of $2.0 million within the seven-year period after the acquisition date. When the gross margin target was achieved, the Company was required to issue 2,520,108 shares of common stock. The Company achieved the gross margin target of $2.0 million for three consecutive months during the three months ended June 30, 2021. As a result of the achievement of the gross margin target, the Company included the 2,520,108 shares of common stock in the calculation of weighted-average shares outstanding used in computing basic and diluted net loss per share for the three and six months ended June 30, 2021. In August 2021, the Company entered into an amendment of the original agreement in which the Company has agreed to forgo the issuance of its common stock. Therefore, these shares are not included in the statements of stockholders' equity or shares issued and outstanding in the balance sheets and are not included in our earnings per share calculation subsequent to August 2021.

Basic and diluted loss per share for the years ended December 31, 2022 and 2021 were (in thousands, except per share amounts):

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Numerator

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(65,447

)

 

$

(43,159

)

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

Weighted-average shares outstanding used
   in computing net loss per share, basic and diluted

 

 

42,103

 

 

 

27,365

 

Net loss per share, basic and diluted

 

$

(1.55

)

 

$

(1.58

)

 

The potentially dilutive securities as of December 31, 2022 and 2021 primarily represent the shares subject to future issuance under stock options awards, warrants, RSUs, and shares subject to purchase under our employee stock purchase plan, the terms of which are described in further detail in Note 12 – Share Based Compensation. The potentially dilutive securities would be subject to the treasury stock method when dilutive. The following outstanding common stock equivalents were excluded from diluted net loss attributable to common stockholders for the periods presented because inclusion would be anti-dilutive (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Options to purchase common stock

 

 

3,067

 

 

 

3,251

 

Shares committed under ESPP

 

 

80

 

 

 

30

 

Warrants

 

 

5,103

 

 

 

103

 

Restricted stock units

 

 

1,211

 

 

 

151

 

Total

 

 

9,461

 

 

 

3,535