Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings (Loss) Per ShareThe 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.


	Year Ended December 31,
(In thousands, except per share amounts)	2021		2020		2019
Numerator:
Net income (loss)	$	(87,758)	$	(58,574)	$	130,133
Add interest expense on Convertible Notes	—		—		5,067
Adjusted net income (loss)	$	(87,758)	$	(58,574)	$	135,200

Denominator:
Shares used in computing net income (loss) per common share, basic	145,652		110,841		106,218
Add effect of potential dilutive securities
Share based awards	—		—		164
Convertible Notes	—		—		10,365
Shares used in computing net income (loss) per common share, diluted	145,652		110,841		116,747

Net income (loss) per share - basic	$	(0.60)	$	(0.53)	$	1.23
Net income (loss) per share - diluted	$	(0.60)	$	(0.53)	$	1.16

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 10,221,278, 11,113,054 and 8,206,390, respectively, for the years ended December 31, 2021, 2020 and 2019. Prior to the extinguishment of the Convertible Notes, 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.