Earnings Per Share

9 Months Ended

Sep. 30, 2021

11. Earnings (Loss) Per Share

The following is a summary of Lexicon’s earnings (loss) per share calculations and reconciliations of the numerators and the denominators of the basic and diluted per share calculations.


(in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Net income (loss)	$	(23,122)	$	82,603	$	(62,147)	$	(53,079)
Add interest on Convertible Notes	—		1,258		—		—
Adjusted net income (loss)	$	(23,122)	$	83,861	$	(62,147)	$	(53,079)

Denominator:
Shares used in computing net income (loss) per common share, basic	145,820		107,309		144,558		106,974
Add effect of potential dilutive securities:
Share based compensation awards	—		51		—		—
Convertible Notes	—		10,192		—		—
Shares used in computing net income (loss) per common share, diluted	145,820		117,552		144,558		106,974

Net income (loss) per share - basic	$	(0.16)	$	0.77	$	(0.43)	$	(0.50)
Net income (loss) per share - diluted	$	(0.16)	$	0.71	$	(0.43)	$	(0.50)

For periods presented with a net loss, the weighted average number of shares outstanding are the same for both basic and diluted net loss per common share. The average number of shares associated with stock options and restricted stock units that were excluded from diluted earnings per share that would potentially dilute earnings per share in the future was 10,615 and 11,773, respectively, for the three months ended September 30, 2021 and 2020, and 10,615 and 11,859, respectively, for the nine months ended September 30, 2021 and 2020. For periods presented with a net loss, the shares associated with the Convertible Notes are not included in the computation of diluted earnings per share because they are antidilutive.