Diluted Earnings Per Share

3 Months Ended

Mar. 31, 2023

Note 11. Diluted Earnings Per Share

Net Loss Per Share

Net loss per share is provided in accordance with ASC 260-10, Earnings Per Share. Basic earnings per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. It is computed by dividing undistributed earnings allocated to common stockholders for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding preferred shares, options and unvested stock units, and warrants outstanding pursuant to the treasury stock method.

As the Company incurred a net loss for the three months ended March 31, 2023, the inclusion of certain options, unvested stock units, warrants, and contingent Sponsor Earnout Shares in the calculation of diluted earnings per share would be anti-dilutive and, accordingly, were excluded from the diluted loss per share calculation.

The following table summarizes potential common shares that were excluded as their effect is anti-dilutive:


	Three Months Ended March 31,
		2023	2022

Options and unvested stock units outstanding		8,240,191	6,884,261
Warrants outstanding		31,463,543	20,156,621

Contingent Sponsor Earnout Shares		1,437,500	1,437,500
Total		41,141,234	28,478,382