Note 5 - Computation of Net Loss Per Common Share

9 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

5. Computation of Net Loss per Common Share

Basic net loss per share (“EPS”) is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance-based restricted stock where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive.  For each of the three and nine months ended December 31, 2021, and 2020, 1.1 million shares were not included in the calculation of diluted EPS.  Of these, 1.0 million relate to shares tied to the derivative liability for which the contingency has not yet been met, and 0.1 million relate to outstanding stock options as they were considered anti-dilutive. 

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and nine months ended  December 31, 2021 and 2020 (in thousands, except per share data):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2021			2020			2021			2020
Numerator:
Net loss	$	(4,324	)	$	(7,933	)	$	(14,161	)	$	(15,062	)
Denominator:
Weighted-average shares of common stock outstanding		28,418			26,532			28,234			24,143
Weighted-average shares subject to repurchase		(1,066	)		(1,062	)		(1,089	)		(1,132	)
Shares used in per-share calculation ― basic		27,352			25,470			27,145			23,011
Shares used in per-share calculation ― diluted		27,352			25,470			27,145			23,011
Net loss per share ― basic	$	(0.16	)	$	(0.31	)	$	(0.52	)	$	(0.65	)
Net loss per share ― diluted	$	(0.16	)	$	(0.31	)	$	(0.52	)	$	(0.65	)