Net (Loss) Income Per Share

6 Months Ended

Jun. 30, 2020

We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss)” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of our common stock. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of our common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later).

The following table shows the calculations for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share amounts).


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Numerator (both basic and diluted)
Net (loss) income	$	(6,824)	$	1,991	$	(13,802)	$	(433)

Denominator
Basic weighted average shares outstanding	107,887		98,297		106,209		96,734
Dilutive effect of stock options	—		3,709		—		—
Dilutive effect of restricted stock awards	—		330		—		—
Dilutive effect of Convertible Notes	—		—		—		—
Diluted weighted average shares outstanding	107,887		102,336		106,209		96,734

Basic net (loss) income per share	$	(0.06)	$	0.02	$	(0.13)	$	0.00
Diluted net (loss) income per share	$	(0.06)	$	0.02	$	(0.13)	$	0.00

The following potential dilutive shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,			Six Months Ended June 30,
	2020	2019	2020	2019
Stock options	2,870,633	—	2,944,330	3,404,296
Restricted stock awards	280,734	—	236,917	259,805
Convertible Notes	3,773,388	—	1,886,694	—