Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2022

The following table presents the calculation of basic and diluted earnings (loss) per share for the Company’s common stock (as adjusted for the Merger Exchange Ratio as described in Note 2 “Business Combination” ):


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share amounts)	2022		2021		2022		2021
Numerator:
Net income (loss)	$	(23,528)	$	(14,692)	$	15,533	$	(29,233)
Denominator:
Basic weighted average common shares outstanding	116,412		8,238		115,935		6,925
Effect of dilutive securities:
Stock options	—		—		9,829		—
Restricted stock units	—		—		937		—
ESPP	—		—		16		—
Diluted weighted average common shares outstanding	116,412		8,238		126,717		6,925
Earnings (loss) per share:
Basic	$	(0.20)	$	(1.78)	$	0.13	$	(4.22)
Diluted	$	(0.20)	$	(1.78)	$	0.12	$	(4.22)

In connection with the closing of the Merger, the Company adopted an Employee Stock Purchase Plan (the “ESPP”). Please refer to Note 12 “Share-Based Compensation” for information regarding the ESPP as well as the ESPP offering period that began on September 1, 2022.

Potential common shares that are considered anti-dilutive are excluded from the computation of diluted earnings per share. Potential common shares related to stock-based awards issued under stock-based compensation programs, preferred stock and warrants may be determined to be anti-dilutive based on the application of the treasury stock method. Potential common shares are also considered anti-dilutive in periods when the Company incurs a net loss. Earn-Out Shares are contingent upon the price of the Company’s common stock over a specified period of time and the target stock prices have not been achieved as of the end of the reporting period.

The number of potential shares outstanding that were anti-dilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, were as follows (as adjusted for the Merger Exchange Ratio as described in Note 2 “Business Combination”):


	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2022	2021	2022	2021
Redeemable convertible preferred stock	—	75,495	—	75,495
Stock options	26,279	15,809	16,095	15,373
Restricted stock units	5,307	—	—	—
ESPP	81	—	—	—
Warrants	—	12	—	12
Earn-Out Shares	12,500	—	12,500	—
Total anti-dilutive shares	44,167	91,316	28,595	90,880