Basic and Diluted Earnings per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Share

17.Basic and Diluted Earnings per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted-average number of common stock and common stock equivalents outstanding for the period. For periods in which the Company incurs a net loss, outstanding common stock equivalents are not included in the calculation of diluted loss per share as their effect is anti-dilutive. Accordingly, basic and diluted net loss per share for those periods are identical.

The dilutive effect of stock options, warrants and unvested nonparticipating restricted stock is based on the treasury stock method while the dilutive effect of the convertible preferred stock is based on the if-converted method. These potential common stock equivalents are only included in the calculations when their effect is dilutive. The Company presents the more dilutive of the two-class method or if-converted method as diluted EPS during the period.

The following table presents information necessary to calculate EPS:

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
Numerator:
Numerator for basic EPS—Net (loss) income attributable to Thorne HealthTech, Inc. (A)	$	4,445,819	$	(5,590,705	)	$	4,043,655	$	(611,646	)
Effect of dilutive securities:
Change in fair value of warrant liability		—		—			—		—
		4,445,819		(5,590,705	)		4,043,655		(611,646	)
Numerator for diluted EPS—net income available to Thorne HealthTech, Inc. common stockholders (C)		4,445,819		(5,590,705	)		4,043,655		(611,646	)
Denominator:
Denominator for basic EPS—weighted average shares (B)		53,866,857		52,731,604			53,606,294		52,648,653
Effect of dilutive securities (1):
Stock options		—		—			—		—
RSUs		—		—			—		—
Warrants		—		—			—		—
Dilutive potential common shares		—		—			—		—
Denominator for diluted EPS—adjusted weighted average common stock and common stock equivalents (D)		53,866,857		52,731,604			53,606,294		52,648,653
Basic EPS (A/B)	$	0.08	$	(0.11	)	$	0.08	$	(0.01	)
Diluted EPS (C/D)	$	0.08	$	(0.11	)	$	0.08	$	(0.01	)

(1) Approximately 18.8 million and 18.1 million warrants and stock-based awards were excluded from the computation of diluted EPS for each of the three months ended June 30, 2023 and 2022, respectively, because
the effect would have been anti-dilutive under the treasury stock method.