Earnings (Loss) Per Share

9 Months Ended

Oct. 03, 2023

Basic 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				Three Fiscal Quarters Ended
	October 3, 2023		September 27, 2022		October 3, 2023		September 27, 2022
Net income (loss)	$	700	$	795	$	(3,719)	$	(4,289)
Shares:
Basic weighted average shares outstanding	45,935,305		46,010,824		46,166,320		45,872,893
Effect of dilutive securities	73,346		186,687		—		—
Diluted weighted average shares outstanding	46,008,651		46,197,511		46,166,320		45,872,893
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.02	$	0.02	$	(0.08)	$	(0.09)
Diluted earnings (loss) per share	$	0.02	$	0.02	$	(0.08)	$	(0.09)

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 3,488,884 and 1,810,346 for the third quarters of 2023 and 2022, respectively, and totaled 3,442,798 and 2,364,003 for the first three quarters of 2023 and 2022, respectively.