Better Choice Company Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net income (loss) per share

Net income (loss) per share

6 Months Ended

Jun. 30, 2021

The Company presents earnings (loss) per share on a basic and diluted basis. Basic earnings (loss) per share is computed by dividing net and comprehensive income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share includes the dilutive effect of common stock equivalents, consisting of stock options and warrants using the treasury stock method and convertible notes and preferred stock using the if-converted method. Under the treasury stock method, the amount the holder must pay for exercising stock options or warrants and the amount of average compensation cost for future service that has not yet been recognized are collectively assumed to be used to repurchase shares.

As the Company reported net income for the three and six months ended June 30, 2021, basic and diluted earnings per share are calculated as outlined above. For the three and six months ended June 30, 2021, the weighted average diluted common shares had 3,471,245 and 4,474,577 common stock equivalents excluded, respectively, based on the fact that their inclusion would have had an anti-dilutive effect on earnings per share. For the three and six months ended June 30, 2020, the Company’s basic and diluted net and comprehensive loss per share attributable to common stockholders are the same because the Company generated a net loss and common stock equivalents are excluded from diluted net loss per share as they have an antidilutive impact.

The following table sets forth basic and diluted net income (loss) per share attributable to common stockholders for the three and six months ended June 30, 2021 and 2020 (in thousands, except share and per share amounts):


	Six Months Ended June 30,				Three Months Ended June 30,
Common stockholders	2021		2020		2021		2020
Basic net income (loss) per share:
Numerator:
Net and comprehensive income (loss)	$	11,926	$	(27,858)	$	24,776	$	(18,404)
Less: Preferred stock dividends	—		68		—		34
Less: Adjustment due to warrant modifications	402		—		—		—
Adjusted net and comprehensive income (loss) available to common stockholders	$	11,524	$	(27,926)	$	24,776	$	(18,438)
Denominator:
Weighted average shares used in computing net earnings (loss) per share attributable to common stockholders, basic	10,361,462		8,122,176		11,126,909		8,156,618
Net earnings (loss) per share attributable to common stockholders, basic	$	1.11	$	(3.44)	$	2.23	$	(2.26)

Dilutive net income (loss) per share:
Numerator:
Net and comprehensive income (loss)	$	11,926	$	(27,858)	$	24,776	$	(18,404)
Less: Preferred stock dividends	—		68		—		34
Less: Adjustment due to warrant modifications	402		—		—		—
Add: Interest expense on convertible notes, net	—		—		656		—
Adjusted net and comprehensive income (loss) available to common stockholders	$	11,524	$	(27,926)	$	25,432	$	(18,438)
Denominator:
Weighted average shares used in computing net earnings (loss) per share attributable to common stockholders, diluted	20,498,829		8,122,176		21,389,413		8,156,618
Net earnings (loss) per share attributable to common stockholders, diluted	$	0.56	$	(3.44)	$	1.19	$	(2.26)