Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income (Loss) Per Share

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 the Company's 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 the Company's 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 nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator - basic
Net income (loss)	$	2,557	$	2,143	$	(11,245)	$	1,710
Numerator - diluted
Net income (loss)	$	2,557	$	2,143	$	(11,245)	$	1,710
Convertible note accretion, amortization, and interest, net of tax	1,975		—		—		—
Net income (loss) used in diluted EPS	$	4,532	$	2,143	$	(11,245)	$	1,710
Denominator
Basic weighted average shares outstanding	110,461		103,899		107,605		99,149
Dilutive effect of stock options	3,017		3,650		—		3,349
Dilutive effect of restricted stock awards	175		331		—		268
Dilutive effect of Convertible Notes	5,538		—		—		—
Diluted weighted average shares outstanding	119,191		107,880		107,605		102,766
Basic net income (loss) per share	$	0.02	$	0.02	$	(0.10)	$	0.02
Diluted net income (loss) per share	$	0.04	$	0.02	$	(0.10)	$	0.02

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 nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Stock options	—	—	3,069,286	—
Restricted stock awards	—	—	201,579	—
Convertible Notes	—	—	3,112,801	—