Earnings Per Share

12 Months Ended

Dec. 31, 2020

Pursuant to the Certificate of Incorporation as amended on November 20, 2019 and as a result of the reverse recapitalization, the Company has retrospectively adjusted the weighted average shares outstanding prior to November 20, 2019 to give effect to the exchange ratio used to determine the number of Class A-1 shares of common stock into which they were converted.

Basic earnings (loss) per share (“EPS”) is computed based on the weighted average number of shares of Class A-1 shares outstanding during the period. Diluted EPS is computed based on the weighted average number of shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options, stockholder notes receivable, and warrants.

Since the shares issuable under the contingent earnout are contingently issuable shares that depend on future earnings or future market prices of the common stock or a change in control, the shares are excluded when computing diluted earnings (loss) per share unless the shares would be issuable if the reporting date was the end of the contingency period. Upon settlement, these shares are included in Class A-1 common stock in the Company’s basic EPS share count.

The components of basic and diluted EPS were as follows (in thousands, except per share amounts):


	2020		2019		2018
Net (loss) income	$	(12,984)	$	(15,701)	$	10,803

Basic weighted average outstanding shares of common stock	83,045		61,850		57,621
Dilutive effect of stock-based awards for common stock	—		—		1,605
Dilutive effect of stockholder notes receivable for common stock	—		—		407
Dilutive effect of warrants for common stock	—		—		2,549
Diluted weighted average outstanding shares of common stock	83,045		61,850		62,182

Earnings (loss) per share:
Basic	$	(0.16)	$	(0.25)	$	0.19
Diluted	$	(0.16)	$	(0.25)	$	0.17

Since the Company was in a net loss position for the years ended December 31, 2020 and 2019, there is no difference between basic and dilutive weighted average common stock outstanding.

Anti-dilutive stock-based awards and warrants excluded from the calculations of diluted EPS were 3,369,759, 23,561,725, and 439,167 for the years ended December 31, 2020, 2019 and 2018, respectively.