Earnings per Share

6 Months Ended

Jun. 30, 2023

The Company calculates earnings per share in accordance with ASC Topic 260 - Earnings Per Share (“EPS”). Basic earnings per common share applicable to common stockholders is computed by dividing earnings applicable to common stockholders by the weighted-average number of common shares outstanding and assumed to be outstanding. Diluted EPS assumes the dilutive effect of outstanding common stock warrants, shares issued in conjunction with the Company’s ESPP and RSUs, all using the treasury stock method.

The following table sets forth the computation of the basic and diluted earnings per share attributable to the Company's common shareholders for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2023		2022		2023		2022
EPS numerator:
Net income (loss)	$	5,320	$	866	$	8,313	$	(650)

EPS denominator:
Weighted average shares outstanding – basic	10,644		10,423		10,560		10,422
Impact of dilutive securities(1)	863		144		776		—
Weighted average shares outstanding – diluted	11,507		10,567		11,336		10,422

EPS:
Basic	$	0.50	$	0.08	$	0.79	$	(0.06)
Diluted	$	0.46	$	0.08	$	0.73	$	(0.06)

(1) For the six months ended June 30, 2022, the Company excluded 150,420 of potentially dilutive securities related to certain of the Company's outstanding common stock warrants, shares issued in conjunction with the Company's ESPP and nonvested RSUs. These securities were excluded from the computation as their effect would have been anti-dilutive. As a result, the computations of net loss per share for the six months ended June 30, 2022 is the same for both basic and diluted.

The following table summarizes the securities that were antidilutive or out-of-the-money, and therefore, were not included in the computations of diluted income per common share:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022

Out-of-the-money warrants (see Note 6)	—	1,229,643	—	1,229,643
Service-based RSUs (See Note 13)	1	17,595	26	72,871
Performance and market-based RSUs(1)	15	48,229	60	85,969
Employee Stock Purchase Plan	643	—	2,426	8,451
Total	659	1,295,467	2,512	1,396,934

(1) For the three and six months ended June 30, 2022, certain MRSU awards (each defined in Note 13) were not included in the computation of diluted income per common share because the performance and market conditions were not satisfied during the periods and would not be satisfied if the reporting date was at the end of the contingency period.