Computation of Basic and Diluted Net (Loss) Income Per Common Share

6 Months Ended

Jul. 02, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net (Loss) Income Per Common Share

10. Computation of Basic and Diluted Net (Loss) Income Per Common Share

Basic and diluted net (loss) income per share is based upon the weighted average number of common shares outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of RSUs and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested RSUs and awards are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive.

For the three months ended July 2, 2022 and July 3, 2021, potential shares from stock options and RSUs totaling 1,698,584 and 211,788 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the six months ended July 2, 2022 and July 3, 2021, potential shares from stock options and RSUs totaling 1,700,686 and 1,586,374 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows:

	Three Months Ended					Six Months Ended
(in thousands except per share data)	July 2, 2022			July 3, 2021		July 2, 2022			July 3, 2021
Numerator:
Net (loss) income	$	(2,241	)	$	1,393	$	(4,632	)	$	(617	)
Denominator:
Weighted average shares of common stock (basic)		15,894			15,647		15,888			14,996
Effect of dilutive stock options		—			427		—			—
Effect of dilutive RSUs		—			233		—			—
Weighted average shares of common stock (diluted)		15,894			16,307		15,888			14,996
Per share data:
Basic net (loss) income per share	$	(0.14	)	$	0.09	$	(0.29	)	$	(0.04	)
Diluted net (loss) income per share	$	(0.14	)	$	0.09	$	(0.29	)	$	(0.04	)