Earnings (Loss) per Common Share

3 Months Ended

Mar. 31, 2022

11. Earnings (Loss) per Common Share

The Company computes basic net income (loss) per share using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of

common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. The weighted average share impact of warrants, restricted stock units, and convertible debt that were excluded from the calculation of diluted shares due to the Company incurring a net loss for the three months ending March 31, 2021 were 1,158,000 shares.

The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations:



	Three Months Ended March 31,
	2022		2021
(In Thousands)
Net income (loss) attributable to common shares	$	271,872	$	(6,042)
Adjustment of interest expense attributable to Convertible Notes		2,309		—
Diluted net income (loss) attributable to common stockholders		274,181		(6,042)

Basic weighted average shares outstanding		15,448		15,283
Effect of dilutive securities		1,651		—
Convertible Notes (a)		4,173		—
Diluted weighted average shares outstanding		21,271		15,283

(a)

Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2022. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share.