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

Quarterly report pursuant to Section 13 or 15(d)

Loss per share

Loss per share

6 Months Ended

Jun. 30, 2023

The Company presents loss per share on a basic and diluted basis. Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding ("WASO") during the period. For the three and six months ended June 30, 2023 and 2022, the Company’s basic and diluted net loss per share attributable to common stockholders are the same as the Company generated a net loss and common stock equivalents are excluded from diluted net loss per share as they have an anti-dilutive impact.

For the three and six months ended June 30, 2023, potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows: 9,433,584 of stock equivalent warrants; 14,768,125 of warrant liabilities (6,545,338.45 First Tranche Warrant and 8,222,787 Second Tranche Warrant); 2,611,842 of stock equivalent employee stock options and 6,412 of stock equivalent other options. For the three months ended June 30, 2022, potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows: 9,433,584 of stock equivalent warrants; 14,768,125 of warrant liabilities; 3,200,271 of stock equivalent employee stock options and 6,412 of stock equivalent other options. The warrants classified as liabilities represent a participating security and thus should be included in the calculation of earnings per share (EPS) using the two-class method. Because these warrants do not have a contractual obligation to share in losses, these warrants will be included in only the diluted EPS calculation assuming the Company has undistributed losses for the period. To determine if the warrants are dilutive, the First Tranche will be calculated using the treasury stock method and adjusting the numerator for changes in fair value and included in diluted EPS, if considered dilutive. The Second Tranche Warrant is contingently exercisable and should not be included in the denominator until the contingency (approval of the Company’s stockholders) is resolved.

The following table sets forth basic and diluted net (loss) earnings per share attributable to common stockholders for the three months ended June 30, 2023 and 2022 (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net loss	$	(2,964)	$	(4,367)	$	(6,448)	$	(8,407)




Adjusted net loss available to common stockholders	$	(2,964)	$	(4,367)	$	(6,448)	$	(8,407)
Denominator:
Basic WASO	30,551,653		29,364,712		30,516,666		29,327,316
Dilutive common stock equivalents	—		—		—		—
Diluted WASO	30,551,653		29,364,712		30,516,666		29,327,316

Net loss per share attributable to common stockholders, basic	$	(0.10)	$	(0.15)	$	(0.21)	$	(0.29)
Net loss per share attributable to common stockholders, diluted	$	(0.10)	$	(0.15)	$	(0.21)	$	(0.29)