Computation of Basic and Diluted Net Loss Per Common Share

9 Months Ended

Oct. 01, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

10. Computation of Basic and Diluted Net Loss Per 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 October 1, 2022 and October 2, 2021, potential shares from stock options and RSUs totaling 1,717,479 and 1,620,634 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the nine months ended October 1, 2022 and October 2, 2021, potential shares from stock options and RSUs totaling 1,706,283 and 1,624,167 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						Nine Months Ended
(in thousands except per share data)	October 1, 2022			October 2, 2021			October 1, 2022			October 2, 2021
Numerator:
Net loss	$	(1,767	)	$	(2,165	)	$	(6,399	)	$	(2,782	)
Denominator:
Weighted average shares of common stock (basic)		15,986			15,824			15,921			15,272
Effect of dilutive stock options		—			—			—			—
Effect of dilutive RSUs		—			—			—			—
Weighted average shares of common stock (diluted)		15,986			15,824			15,921			15,272
Per share data:
Basic net loss per share	$	(0.11	)	$	(0.14	)	$	(0.40	)	$	(0.18	)
Diluted net loss per share	$	(0.11	)	$	(0.14	)	$	(0.40	)	$	(0.18	)