Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.20.2
Net Income (Loss) Per Share
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss)” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of the Company's common stock. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of the Company's common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later).
The following table shows the calculations for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts).

Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Numerator - basic
Net income (loss) $ 2,557  $ 2,143  $ (11,245) $ 1,710 
Numerator - diluted
Net income (loss) $ 2,557  $ 2,143  $ (11,245) $ 1,710 
Convertible note accretion, amortization, and interest, net of tax 1,975  —  —  — 
Net income (loss) used in diluted EPS $ 4,532  $ 2,143  $ (11,245) $ 1,710 
Denominator
Basic weighted average shares outstanding 110,461  103,899  107,605  99,149 
Dilutive effect of stock options 3,017  3,650  —  3,349 
Dilutive effect of restricted stock awards 175  331  —  268 
Dilutive effect of Convertible Notes 5,538  —  —  — 
Diluted weighted average shares outstanding 119,191  107,880  107,605  102,766 
Basic net income (loss) per share $ 0.02  $ 0.02  $ (0.10) $ 0.02 
Diluted net income (loss) per share $ 0.04  $ 0.02  $ (0.10) $ 0.02 

The following potential dilutive shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive for the three and nine months ended September 30, 2020 and 2019:

Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Stock options —  —  3,069,286  — 
Restricted stock awards —  —  201,579  — 
Convertible Notes —  —  3,112,801  —