Note 14 - Net Income (Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

14. Net Income (Loss) per Share of Common Stock

The Company’s basic net income (loss) per share of common stock is calculated by dividing the net income (loss) allocable to common shareholders by the weighted average number of shares of common stock outstanding for the period. The diluted net income (loss) per share of common stock is computed by giving effect to all potential common stock equivalents outstanding for the period determined using the more dilutive of the 1) treasury stock method, if-converted method, or contingently issuable share method, as applicable, or 2) the two-class method. For purposes of this calculation, options to purchase common stock, RSUs, and warrants to purchase common stock were considered to be common stock equivalents. In periods with a reported net loss, common stock equivalents are excluded from the calculation of diluted net loss per share of common stock if their effect is antidilutive.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share of common stock during the three and nine months ended September 30, 2022 and 2021 (in thousands, except for share and per share amounts):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
		(in thousands, except share and per share amounts)
Basic net income (loss) per common share:
Net (loss) income		$	(6,750	)		$	(8,375	)		$	55,239			$	(27,182	)
Less: deemed dividend related to Series A Redeemable Convertible Preferred Stock			(186	)			—				(186	)			—
Less: income allocated to participating securities			—				—				(129	)			—
Net (loss) income attributable to common shareholders			(6,936	)			(8,375	)			54,924				(27,182	)
Weighted average shares outstanding — basic			7,377,363				5,961,224				7,338,853				5,861,111
Net income (loss) per share — basic		$	(0.94	)		$	(1.40	)		$	7.48			$	(4.64	)

Diluted net income (loss) per common share:
Net (loss) income		$	(6,750	)		$	(8,375	)		$	55,239			$	(27,182	)
Less: deemed dividend related to Series A Redeemable Convertible Preferred Stock			(186	)			—				(186	)			—
Less: income allocated to participating securities			—				—				(129	)			—
Net (loss) income attributable to common shareholders			(6,936	)			(8,375	)			54,924				(27,182	)
Weighted average shares outstanding — basic			7,377,363				5,961,224				7,338,853				5,861,111
Dilutive effect of RSUs			—				—				1,345				—
Dilutive effect of Warrants			—				—				27,095				—
Weighted average shares outstanding — diluted			7,377,363				5,961,224				7,367,293				5,861,111
Net income (loss) per share — diluted		$	(0.94	)		$	(1.40	)		$	7.46			$	(4.64	)

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net income (loss) per share of common stock for the periods presented because including them would have been antidilutive:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
RSUs, stock options and ESPP to purchase common stock			821,875				823,766				817,086				823,766
Common stock warrants			964,983				8,833				910,928				8,833

In addition, the shares held back and contingently issuable in connection with the Lowell Merger, as described in Note 4. above, have also been excluded from the computation of diluted net income (loss) per share of common stock for the periods presented because the contingencies for issuance of these shares have not been met. Further, the Series A Redeemable Convertible preferred shares contingently convertible to common shares upon certain events, as described in Note 11 above, have been excluded from the computation of diluted net income (loss) per share of common stock for the three months ended September 30, 2022, as the contingencies for conversion of these shares have not been met as of September 30, 2022.