Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2022

In accordance with ASC 260, Earnings Per Share, a company that has participating securities is required to utilize the two-class method for calculating earnings per share (“EPS”) unless the treasury stock method results in lower EPS. The two-class method is an allocation of earnings between the holders of common stock and a company’s participating securities. Basic EPS is calculated by dividing income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding. To calculate diluted EPS, basic EPS is further adjusted to include the effect of potentially dilutive stock options, warrants, and convertible preferred stock.

The following table summarizes the computation of basic and diluted net loss per common share.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net loss	$	(2,215)	$	(3,377)	$	(14,084)	$	(13,681)
Less: Preferred stock cumulative dividends and deemed dividends	(2,783)		(2,314)		(7,979)		(19,054)








Numerator for basic and diluted undistributed net loss per common share (1)	$	(4,998)	$	(5,691)	$	(22,063)	$	(32,735)

Denominator:
Weighted average common shares outstanding	43,884		43,034		43,695		42,980
Adjustment for unvested restricted common stock	(1,065)		(476)		(918)		(459)
Adjustment for 2021 Warrants outstanding (2)	1,892		1,897		1,893		1,341
Shares used to calculate net loss per share, basic and diluted	44,711		44,455		44,670		43,862



Per common share net loss:






Basic and diluted net loss per common share	$	(0.11)	$	(0.13)	$	(0.49)	$	(0.75)
Cash dividends declared per common share	$	—	$	—	$	—	$	—

_______________________________

(1) Preferred Stock does not participate in losses.

(2) Weighted average 2021 Warrants outstanding are included in shares outstanding for calculation of basic earnings per share because they are exercisable at an exercise price of $0.01 per share, subject to certain adjustments (see Note 15).

The following table presents securities that could be potentially dilutive in the future that were excluded from the calculation of diluted net loss per common share because they had an anti-dilutive effect.


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Options	542	752	563	812
2019 Warrants	1,500	1,500	1,500	1,500

	2,042	2,252	2,063	2,312

We have elected to allocate undistributed income to participating securities based on year-to-date results. As there was no undistributed income for the nine months ended September 30, 2022, no such allocation was necessary. In addition, given the undistributed loss in the three and nine months ended September 30, 2022 and 2021, options and the 2019 Warrants are considered anti-dilutive and were excluded from the calculation of diluted net loss per share. Stock options excluded from the calculations of diluted net loss per share had a per share exercise price ranging from $7.93 to $25.16 for the three months ended

September 30, 2022, and $7.93 to $25.16 for the three months ended September 30, 2021. Stock options excluded from the calculations of diluted net loss per share had a per share exercise price ranging from $7.93 to $25.16 for the nine months ended September 30, 2022, and $7.93 to $25.16 for nine months ended September 30, 2021. The 2019 Warrants excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2022 and 2021, had a per share exercise price of $11.49.