Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) per Common Share

v3.22.2
Earnings (Loss) per Common Share
6 Months Ended
Jun. 30, 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 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, 2021. 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,
2022 2021 2022 2021
Basic earnings per common share:
Net income (loss) - basic $ 35,738  $ (46,058) $ 24,982  $ (73,494)
Weighted shares outstanding - basic 75,408,116  58,560,928  75,268,854  45,924,405 
Basic earnings (loss) per common share $ 0.47  $ (0.79) $ 0.33  $ (1.60)
Diluted earnings per common share:
Net income (loss) - basic $ 35,738  $ (46,058) $ 24,982  $ (73,494)
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 $ 29,589  $ (46,058) $ 20,041  $ (73,494)
Weighted shares outstanding - basic 75,408,116  58,560,928  75,268,854  45,924,405 
Add: Dilutive effects of stock options and restricted stock units 2,161,848  2,372,201 
Add: Dilutive effects of if-converted Convertible Note 7,640,246  7,640,246 
Weighted shares outstanding - diluted 85,210,210  58,560,928  85,281,301  45,924,405 
Diluted earnings (loss) per common share $ 0.35  $ (0.79) $ 0.23  $ (1.60)

The Company excluded the following potential common shares from the computation of diluted earnings (loss) per share for the periods indicated below because including them would have had an anti-dilutive effect. 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 a result of the Business Combination, the underlying shares have been retroactively restated to give effect to the recapitalization based on the Exchange Ratio.

Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Convertible notes payable 8,695,652 8,695,652
Outstanding warrants 24,365,719 24,365,719 24,365,719 24,365,719
Stock options 946,560 3,500,121 946,560 3,500,121
Restricted stock units 915,322 799,823
Total anti-dilutive stock 26,227,601 36,561,492 26,112,102 36,561,492