Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share

Earnings Per Share

4. Earnings Per Share

Basic earnings per common stock are computed by dividing net loss attributable to common stockholders by the weighted average number of common stock outstanding during the reporting period. After January 1, 2021, the date of the adoption of ASU 2020-06, in periods when we have net income, the shares of our common stock subject to the convertible notes outstanding during the period will be included in our diluted earnings per share under the if-converted method. Since the Company is in a net loss position, all common stock equivalents would be considered anti-dilutive and are therefore not included in the determination of diluted earnings per share. Accordingly, basic and diluted loss per share are the same.

The potentially dilutive securities are summarized as follows:

	At June 30,
	2021	2020
Stock options outstanding (1)	9,165,066	16,273,120
Restricted stock outstanding (2)	6,511,808	4,455,484
Common stock warrants (3)	83,518,821	110,573,392
Convertible Senior Notes (4)	39,170,766	72,872,730
Number of dilutive potential shares of common stock	138,366,461	204,174,726

(1) During the three months ended June 30, 2021 and 2020, the Company granted 117,500 and 89,649 stock options, respectively. During the six months ended June 30, 2021 and 2020, the Company granted 698,500 and 174,649 stock options, respectively.

(2) During the three months ended June 30, 2021 and 2020, the Company granted 98,000 and 96,649 shares of restricted stock, respectively. During the six months ended June 30, 2021 and 2020, the Company granted 653,000 and 96,649 shares of restricted stock, respectively.

(3) In April 2017, the Company issued a warrant to acquire up to 55,286,696 shares of the Company’s common stock as part of a transaction agreement with Amazon, subject to certain vesting events, as described in Note 12, “Warrant Transaction Agreements.” The warrant had been exercised with respect to 13,960,354 shares of the Company’s common stock as of June 30, 2021.  

In July 2017, the Company issued a warrant to acquire up to 55,286,696 shares of the Company’s common stock as part of a transaction agreement with Walmart, subject to certain vesting events, as described in Note 12, “Warrant Transaction Agreements.” The warrant had been exercised with respect to 13,094,217 shares of the Company’s common stock as of June 30, 2021.

(4) In March 2018, the Company issued the 5.5% Convertible Senior Notes due 2023 (the “5.5% Convertible Senior Notes”). In September 2019, the Company issued the 7.5% Convertible Senior Note due 2023 (the “7.5% Convertible Senior Note”), which was fully converted into 16.0 million shares of common stock on July 1, 2020. In May 2020,

the Company issued the 3.75% Convertible Senior Notes and repurchased $66.3 million of the 5.5% Convertible Senior Notes.  In the fourth quarter of 2020, $33.5 million of the remaining 5.5% Convertible Senior Notes converted into 14.6 million shares of common stock. The remaining $160 thousand aggregate principal amount of the 5.5% Convertible Senior Notes were converted in January 2021. During the first quarter of 2021, $15.2 million of the 3.75% Convertible Senior Notes were converted, resulting in the issuance of 3,016,036 shares of common stock. There were no conversions in the second quarter of 2021.