Earnings (loss) Per Share

9 Months Ended

Sep. 30, 2022

NOTE 8. EARNINGS (LOSS) PER SHARE

Basic net (loss) income per share is computed by dividing net (loss) income attributable to common stockholders (the numerator) by the weighted average number of common stock outstanding for the period (the denominator). Diluted net income per common stock attributable to common stockholders is computed by dividing net income by the weighted average number of common stocks outstanding during the period adjusted for the dilutive effects of common stock equivalents using the treasury stock method or the method based on the nature of such securities. In periods when losses from continuing operations are reported, the weighted-average number of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The computation of net loss per share for the three and nine months ended September 30, 2022 and 2021, respectively was as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net loss attributable to common stockholders
Net loss attributable to Paragon 28, Inc.	$	(9,724	)	$	(5,107	)	$	(28,563	)	$	(7,518	)
Less: Dividends on Series B convertible preferred stock		—			(574	)		—			(1,516	)
Net loss attributable to common stockholders	$	(9,724	)	$	(5,681	)	$	(28,563	)	$	(9,034	)

Weighted-average common stock outstanding:
Basic		76,850,949			47,005,334			76,595,118			46,926,344
Diluted		76,850,949			47,005,334			76,595,118			46,926,344

Loss per share:
Basic	$	(0.13	)	$	(0.12	)	$	(0.37	)	$	(0.19	)
Diluted	$	(0.13	)	$	(0.12	)	$	(0.37	)	$	(0.19	)

The following outstanding potentially dilutive securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their impact would have been antidilutive for the period presented:


	As of September 30, 2022
	2022		2021
Stock options		7,304,770		5,307,200
Restricted stock units		144,547		—
Series A convertible preferred stock		—		13,812,500
Series B convertible preferred stock		—		6,608,700