Lightning eMotors, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) per Common Share

Earnings (Loss) per Common Share

6 Months Ended

Jun. 30, 2023

Earnings (Loss) per Common ShareBasic 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 common share is computed by dividing net income or loss by the weighted average number of common shares outstanding, plus the issuance of potentially dilutive common shares 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 three and six months ended June 30, 2023 and 2022. The Company applied the treasury stock method to account for the dilutive impact of its options, warrants and restricted stock units and the if-converted method for its Convertible Note.

The following table reconciles the earnings (loss) and number of common shares used to calculate basic and diluted earnings per common share attributable to the Company’s shareholders:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic earnings per common share:
Net income (loss) - basic	$	(21,448)	$	35,738	$	(44,883)	$	24,982
Weighted shares outstanding - basic	5,800,106		3,770,406		5,299,921		3,763,443
Basic earnings (loss) per common share	$	(3.70)	$	9.48	$	(8.47)	$	6.64

Diluted earnings per common share:
Net income (loss) - basic	$	(21,448)	$	35,738	$	(44,883)	$	24,982
Add: Convertible Note interest expense, net of tax	—		3,938		—		7,701
Reverse: Change in fair value of derivative liability	—		(10,087)		—		(12,642)
Net income (loss) - diluted	$	(21,448)	$	29,589	$	(44,883)	$	20,041
Weighted shares outstanding - basic	5,800,106		3,770,406		5,299,921		3,763,443
Add: Dilutive effects of stock options and restricted stock units	—		108,092		—		118,610
Add: Dilutive effects of if-converted Convertible Note	—		382,012		—		382,012
Weighted shares outstanding - diluted	5,800,106		4,260,511		5,299,921		4,264,065
Diluted earnings (loss) per common share	$	(3.70)	$	6.94	$	(8.47)	$	4.70

All potentially dilutive common shares in the following table were excluded from the computation of diluted loss per share for the three and six months ended June 30, 2023 and 2022 because including them would have had an anti-dilutive effect due to losses reported during those periods.


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Convertible notes payable	260,273	—	260,273	—
Outstanding warrants	1,218,286	1,218,286	1,218,286	1,218,286
Stock options	123,396	47,328	123,396	47,328
Restricted stock units	356,394	45,766	356,394	39,991
Common and preferred Series C warrants	—	—	—	—
Total anti-dilutive stock	1,958,349	1,311,380	1,958,349	1,305,605