Net Loss Per Share

9 Months Ended

Sep. 30, 2023

NET LOSS PER SHAREBasic net loss per share is computed by dividing net loss by the weighted average number of shares outstanding. Diluted net loss per share is computed by also considering the impact of potential common stock on both net loss and the weighted average number of shares outstanding. Our potential common stock consists of employee stock options, time-based restricted stock units, market-based restricted stock unit awards, and common stock issued for settlement of the Notes (as defined in Note 17 to the condensed consolidated financial statements). Our potential common stock is included in the diluted earnings per share calculation when adding such potential common stock would not be anti-dilutive. Market-based awards are included in the computation of diluted earnings per share only to the extent that the underlying conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss for the period presented, the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive.

As of September 30, 2023, there were approximately 1,439,944 shares issuable upon the exercise of options, the vesting of time-based restricted stock and the contingent vesting of market-based restricted stock units that were excluded from the dilutive calculations, as they were anti-dilutive. For the three and nine months ended September 30, 2022, there were approximately 578,121 issuable upon the exercise of options that were excluded from the dilutive calculations, as they were anti-dilutive. In addition, the Company issued $75 million aggregate principal amount of the Notes on January 24, 2023, which, if converted, would result in the issuance of a maximum of 2,124,645 shares of common stock. These shares were excluded from the dilutive calculations, as their effect would have been anti-dilutive.

A reconciliation of the number of common shares used in the calculation of basic and diluted net loss per share is presented below:


	Three Months Ended September 30,
	2023			2022
	Shares	Per-Share Amount		Shares	Per-Share Amount
Basic net loss per share	18,953,251	$	(0.46)	18,436,615	$	(0.34)
Effect of dilutive securities	—	—		—	—
Diluted net loss per share	18,953,251	$	(0.46)	18,436,615	$	(0.34)


	Nine Months Ended September 30,
	2023			2022
	Shares	Per-Share Amount		Shares	Per-Share Amount
Basic net loss per share	18,899,954	$	(3.08)	18,336,537	$	(1.34)
Effect of dilutive securities	—	—		—	—
Diluted net loss per share	18,899,954	$	(3.08)	18,336,537	$	(1.34)