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Basic and Diluted Net Income (Loss) Per Share
3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Basic and Diluted Net Income (Loss) Per Share

9. Basic and Diluted Net Income (Loss) Per Share

Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period, if inclusion of these is dilutive. The Company uses the if-converted method and presumes share settlement for its 2025 Notes when calculating the dilutive effect of these notes. In

connection with the offerings of the convertible senior notes, the Company entered into convertible note hedges and warrants. However, the convertible note hedges are not included when calculating potentially dilutive shares since their effect is always anti-dilutive. Warrants were considered anti-dilutive to the extent that their strike price were above the Company's average share price during the period.

Because the Company has reported a net loss for the three months ended March 31, 2023 and 2022, the diluted net loss per common share is the same as basic net loss per common share for those periods. The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as the effect would be anti-dilutive:

The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Net loss, basic and diluted

 

$

(35,029

)

 

$

(34,325

)

Weighted average shares used to compute
   basic and diluted net loss per share

 

 

35,584,685

 

 

 

35,073,862

 

Net loss per share, basic and diluted

 

$

(0.98

)

 

$

(0.98

)

 

The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as the effect would be anti-dilutive:

 

 

 

March 31,

 

 

 

2023

 

 

2022

 

Unreleased restricted stock

 

 

2,403,168

 

 

 

1,691,713

 

Options to purchase common stock

 

 

606,785

 

 

 

688,762

 

Convertible senior notes

 

 

1,807,141

 

 

 

1,807,141

 

Warrants related to the issuance of convertible senior notes

 

 

1,807,141

 

 

 

1,807,141

 

Total

 

 

6,624,235

 

 

 

5,994,757