Earnings (Loss) Per Share

6 Months Ended

Jul. 04, 2023

Earnings (Loss) Per ShareBasic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options, warrants and RSUs. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 4, 2023		June 28, 2022		July 4, 2023		June 28, 2022
Net (loss) income	$	(1,304)	$	1,345	$	(4,419)	$	(5,084)
Shares:
Basic weighted average shares outstanding	46,363,208		45,881,354		46,239,357		45,803,927
Effect of dilutive securities	—		227,366		—		—
Diluted weighted average shares outstanding	46,363,208		46,108,720		46,239,357		45,803,927
(Loss) earnings per share:
Basic (loss) earnings per share	$	(0.03)	$	0.03	$	(0.10)	$	(0.11)
Diluted (loss) earnings per share	$	(0.03)	$	0.03	$	(0.10)	$	(0.11)

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted loss per share when the effect would be anti-dilutive. The shares issuable on the vesting or exercise of share-based awards that were excluded from the calculation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive totaled 3,896,910 and 1,798,409 for the second quarters of 2023 and 2022, respectively, and totaled 3,466,704 and 2,278,371 for the first two quarters of 2023 and 2022, respectively.