Basic and Diluted Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share, Basic and Diluted [Abstract]

Basic and Diluted Net Income (Loss) Per Share

Basic and Diluted Net Income (Loss) Per Share

We present net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities, as the warrants are considered participating securities. We have not allocated net loss attributable to common stockholders to warrants because the holders of our warrants are not contractually obligated to share in our losses. Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share attributable to common stockholders is calculated to give effect to all potential shares of common stock, including common stock issuable upon exercise of warrants, stock options, and restricted stock units (“RSUs”). In periods for which there is a net loss, diluted loss per common share is equal to basic loss per common share, since the effect of including any common stock equivalents would be antidilutive.

The following table sets forth the reconciliation of shares used to compute basic and diluted net loss income per share for the periods indicated (in thousands):

	Three Months Ended March 31
	2021		2020
Numerator:
Loss from continuing operations, net of tax	$	(588)	$	(2,368)
Income (loss) from discontinued operations, net of tax	6,020		(585)
Net income (loss)	5,432		(2,953)
Deemed dividend on Series A redeemable preferred stock	(479)		(484)
Net income (loss) attributable to common shareholders	$	4,953	$	(3,437)
Denominator:
Weighted average shares outstanding - basic and diluted	4,916		2,055
Net loss per common share - basic and diluted
Net loss per share, continuing operations	$	(0.12)	$	(1.15)
Net income (loss) per share, discontinued operations	$	1.22	$	(0.28)
Net income (loss) per share	$	1.10	$	(1.44)
Deemed dividend on Series A perpetual preferred stock per share	$	(0.10)	$	(0.24)
Net income (loss) per share, attributable to common shareholders - basic and diluted	$	1.01	$	(1.67)

Antidilutive common stock equivalents are excluded from the computation of diluted loss per share. Stock options and restricted stock units are antidilutive when the assumed proceeds per share are greater than the average market price of the common shares. In addition, in periods where net losses are incurred, stock options and restricted stock units with assumed proceeds per share less than the average market price of the common shares become antidilutive as well. The computation of diluted earnings per share excludes stock options and stock units that are anti-dilutive. The following common stock equivalents were anti-dilutive (in thousands):

	Three Months Ended March 31
	2021	2020
Stock options	25	54
Restricted stock units	68	13
Stock warrants	866	—
Total	959	67

As of March 31, 2021, 0.9 million warrants were exercised and 1.5 million warrants remained outstanding at an exercise price of $2.25.