Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) per Common Share

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Earnings (Loss) per Common Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings (Loss) per Common Share Earnings (Loss) per Common Share
Basic income or loss per common share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted income or loss per share of common stock is computed by dividing net income or loss by the weighted average number of shares of common stock outstanding, plus the issuance of potentially dilutive shares of common stock that could result from the exercise of outstanding stock options and warrants, vesting of restricted stock and conversion of convertible notes. No potentially dilutive common shares are included in the computation of any diluted per share amount when a loss is reported, which was the case for the year ended December 31, 2021. The Company applied the treasury stock method to account for the dilutive impact of its stock options, warrants and RSUs and the if converted method for its Convertible Note.

The following table reconciles the earnings (loss) and number of shares of common stock used to calculate basic and diluted earnings per share of common stock attributable to the Company’s stockholders:
Year Ended December 31,
2022 2021
Basic earnings per common share:
Net income (loss) - basic $ 15,170  $ (100,769)
Weighted shares outstanding - basic 77,132,774  60,260,156 
Basic earnings (loss) per common share $ 0.20  $ (1.67)
Diluted earnings per common share:
Net income (loss) - basic $ 15,170  $ (100,769)
Add: Convertible Note interest expense, net of tax 15,800 
Reverse: Change in fair value of derivative liability (17,302)
Net income (loss) - diluted $ 13,668  $ (100,769)
Weighted shares outstanding - basic 77,132,774  60,260,156 
Add: Dilutive effects of stock options and restricted stock units 2,050,207 
Add: Dilutive effects of if-converted Convertible Note 6,422,855 
Weighted shares outstanding - diluted 85,605,836  60,260,156 
Diluted earnings (loss) per common share $ 0.16  $ (1.67)
Potential weighted average shares that were excluded from the computation of diluted net income per share because their effect was anti-dilutive for the year ended December 31, 2022 consisted of the following. The Company also excluded the earnout shares as they are not currently issued and outstanding and will not be issued until satisfaction of the applicable stock price levels as described in Note 3.
As of December 31,
2022
Warrants 24,365,719 
Stock Options 1,066,405 
Restricted stock units 2,728,782 
All potentially dilutive common shares in the following table were excluded from the computation of diluted loss per share
for the year ended December 31, 2021 because including them would have had an anti-dilutive effect due to losses reported during those periods.
As of December 31,
2021
Convertible notes payable 7,640,246 
Outstanding warrants 24,365,719 
Stock options 3,209,517 
Restricted stock units 935,148 
Total potential anti-dilutive stock 36,150,630