Earnings Per Share

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE

Basic earnings per share amounts are computed based on the weighted average number of common shares outstanding. Diluted weighted average shares outstanding include the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period.

The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data):


	Year Ended December 31,
	2022		2021
Net loss	$	(15,233)	$	(19,412)
Less: Net income attributable to non-controlling interests and redeemable non-controlling interests	(797)		(409)
Less: Net income attributable to certain entities owned by employees	(89)		(198)
Net loss attributable to Pixelworks Inc. - for purposes of earnings per share calculation	$	(16,119)	$	(20,019)
Weighted average shares outstanding - basic and diluted	54,335		52,509



Net loss attributable to Pixelworks, Inc. per share - basic and diluted	$	(0.30)	$	(0.38)

Basic and diluted earnings (loss) per share was computed by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period. The numerator adjustments include an allocation of PWSH income to the non-controlling interests, the redeemable non-controlling interests and the employee owned entities. The equity interest associated with the employee-owned entities are considered participating securities at PWSH and will be allocated income, however, they are not required to fund losses, and therefore, no allocations of losses will be made to the employee owned entities in periods of loss at PWSH. Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan.

The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands):


	Year Ended December 31,
	2022	2021
Employee equity incentive plans	4,071	3,832

Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan.