NET INCOME PER SHARE

3 Months Ended

12 Months Ended

Mar. 31, 2021

Dec. 31, 2020

OLD PlayStudios, Inc.

NET INCOME PER SHARE

NOTE 17—NET INCOME PER SHARE

Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common stock outstanding, including the potential dilutive securities. For the calculation of diluted net income per share, net income attributable to common stockholders is adjusted to reflect the potential effect of dilutive securities.

The following table sets forth the computation of basic and diluted net income attributable to common stockholders per share (in thousands except share and per share data):

	Three Months Ended March 31,
	2021		2020
Net income attributable to common stockholders-basic
Net income	$	5,918	$	5,492
Income allocated to participating preferred stock		(4,000)		(3,838)
Net income attributable to common stockholders - basic	$	1,918	$	1,654
Net income attributable to common stockholders-diluted
Net income	$	5,918	$	5,492
Income allocated to participating preferred stock		(3,819)		(3,763)
Net income attributable to common stockholders - diluted	$	2,099	$	1,729
Weighted average shares of common stock outstanding
Basic weighted average shares of common stock outstanding		239,946		236,367
Dilutive effect of weighted average Series A warrants		539		483
Dilutive effect of weighted average Series B warrants		1,167		715
Dilutive effect of weighted average Series C-1 warrants		1,938		936
Dilutive effect of weighted average Series C warrants		397		—
Dilutive effect of weighted average stock options		61,020		25,822
Dilutive weighted average shares of common stock outstanding		305,007		264,323
Net income attributable to common stockholders per share
Basic	$	0.01	$	0.01
Diluted	$	0.01	$	0.01

The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net income per share of common stock for the periods presented due to their antidilutive effect:

	Three Months Ended March 31,
	2021	2020
Series C warrants	—	617
Series B warrants(2)	1,232	1,232
Stock options	885	20,053

(1) A portion of the Series B warrants were excluded from the diluted net income per share calculation because they are only exercisable upon a change in control or an IPO. 

NOTE 15—NET INCOME PER SHARE

Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common stock outstanding, including the potential dilutive securities. For the calculation of diluted net income per share, net income attributable to common stockholders is adjusted to reflect the potential effect of dilutive securities.

The following table sets forth the computation of basic and diluted net income attributable to common stockholders per share (in thousands except share and per share data):

	Year Ended December 31,
	2020		2019		2018
Net income attributable to common stockholders-basic
Net income	$	12,807	$	13,614	$	2,822
Deemed contribution related to redemption of preferred NCI		—		—		5,632
Income allocated to participating preferred stock		(6,822)		(7,174)		(5,087)
Net income attributable to common stockholders - basic	$	5,985	$	6,440	$	3,367
Net income attributable to common stockholders-diluted
Net income	$	12,807	$	13,614	$	2,822
Deemed contribution related to redemption of preferred NCI(1)		—		—		5,632
Income allocated to participating preferred stock		(6,387)		(6,945)		(4,977)
Net income attributable to common stockholders - diluted	$	6,420	$	6,669	$	3,477
Weighted average shares of common stock outstanding
Basic weighted average shares of common stock outstanding		236,118,856		234,070,277		229,409,649
Dilutive effect of weighted average Series A warrants		509,959		466,040		452,308
Dilutive effect of weighted average Series B warrants		930,400		579,050		469,189
Dilutive effect of weighted average Series C-1 warrants		1,413,452		633,290		389,348
Dilutive effect of weighted average Series C warrants		142,960		—		—
Dilutive effect of weighted average stock options		43,951,931		19,704,926		17,459,421
Dilutive weighted average shares of common stock outstanding		283,067,558		255,453,583		248,179,915
Net income attributable to common stockholders per share
Basic	$	0.03	$	0.03	$	0.01
Diluted	$	0.02	$	0.03	$	0.01

(1) As further discussed in Note 13, the Company purchased Resort World’s noncontrolling interest in International on December 3, 2018. The excess carrying value of the redeemed preferred stock over the fair value of the purchase price paid was treated as a deemed contribution.

The following equity awards outstanding at the end of each period presented have been excluded from the computation of diluted net income per share of common stock for the periods presented due to their anti-dilutive effect:

	Year Ended December 31,
	2020	2019	2018
Series C warrants	—	617,192	617,192
Series B warrants(2)	1,231,872	1,231,872	1,231,872
Stock options	340,000	27,796,684	36,020,008

(2)   A portion of the Series B warrants were excluded from the diluted net income per share calculation because they are only exercisable upon a change in control or an IPO.