Earnings (Loss) per Share

9 Months Ended

Sep. 30, 2023

Note 13. Earnings (Loss) per Share

The following is a reconciliation of the numerator (earnings (loss)) and the denominator (number of shares) used in the basic and diluted earnings (loss) per share calculations:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Numerator
Net income (loss)	$	2,568		$	(3,991	)	$	(10,457	)	$	(17,424	)
Percentage allocated to common stockholders(1)		56	%		100	%		100	%		100	%
Numerator for basic earnings (loss) per common share	$	1,433		$	(3,991	)	$	(10,457	)	$	(17,424	)
Undistributed income allocated to Series A Warrants and Series B Warrants		110
Change in fair value of warrant liabilities		(4,343	)		—			—			—
Numerator for diluted loss per common share	$	(2,800	)	$	(3,991	)	$	(10,457	)	$	(17,424	)

Denominator
Weighted average number of shares of common stock, basic		11,102			10,225			10,881			10,089
Series A Warrants and Series B Warrants		854			—			—			—
Weighted average number of shares of common stock, diluted		11,956			10,225			10,881			10,089

Basic earnings (loss) per common share	$	0.13		$	(0.39	)	$	(0.96	)	$	(1.73	)
Diluted loss per common share	$	(0.23	)	$	(0.39	)	$	(0.96	)	$	(1.73	)

(1) Basic weighted average common stock outstanding		11,102			10,225			10,881			10,089
Basic weighted average common stock and participating securities (Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants)		19,897			10,225			10,881			10,089
Percentage allocated to common stockholders		56	%		100	%		100	%		100	%

Basic earnings (loss) per common share is calculated by dividing the earnings (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. For purposes of the diluted earnings (loss) per share calculation, Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants, stock options, restricted stock awards, and restricted stock units are considered to be potentially dilutive securities. Basic and diluted earnings (loss) attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities. The Company considers Series A Redeemable Convertible Preferred Stock, Series A Warrants, and Series B Warrants to be participating securities, because holders of such instruments participate in the event a dividend is paid on common stock. The holder of the Series A Redeemable Convertible Preferred Stock, Series A Warrants and Series B Warrants does not have a contractual obligation to share in the Company’s losses. As such, losses are attributed entirely to common stockholders and for periods in which the Company has reported a net loss, diluted loss per common share is the same as basic loss per common share.

The Company excluded the following amounts of equity securities from its diluted loss per share calculations for the three and nine months ended September 30, 2023 and 2022 because their effect was anti-dilutive:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Series A Redeemable Convertible Preferred Stock		7,940		—		7,940		—
Series A Warrants and Series B Warrants		—		—		4,367		—
Restricted stock awards and units		568		821		568		821
Outstanding stock options		1,997		1,207		1,997		1,207

The anti-dilutive weighted average shares excluded from the diluted loss per share calculations were:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Series A Redeemable Convertible Preferred Stock		7,940		—		4,014		—
Series A Warrants		—		—		322		—
Series B Warrants		—		—		126		—
Restricted stock awards and units		639		882		785		982
Outstanding stock options		1,997		1,199		1,750		1,131
Total		10,576		2,081		6,997		2,113