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

Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) per Share

Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2022

6. Earnings (loss) per share

Earnings (loss) per share (EPS) is computed in accordance with ASC 260—Earnings per Share and is calculated using the weighted average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options, restricted stock units and restricted stock awards) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject

to repurchase by the Company, options, and other dilutive awards are considered to be common stock equivalents and are only included in the calculation of diluted earnings (loss) per share when their effect is dilutive.

Basic earnings (loss) per share is calculated using the Company’s weighted average outstanding common shares. Diluted earnings (loss) per share is calculated using the Company’s weighted average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

The computation of EPS is as follows:


	Three months ended June 30,					Six months ended June 30,
	2022			2021		2022			2021
Numerator—basic and diluted:
Net income (loss)	$	(3,442	)	$	5,102	$	(17,656	)	$	4,370

Denominator:
Weighted average common shares - basic common stock (1)		22,845,040			22,444,246		22,799,981			22,313,546
Weighted average common shares - diluted common stock (2)		22,845,040			22,874,321		22,799,981			22,734,079

Net income (loss) per share - basic common stock	$	(0.15	)	$	0.23	$	(0.77	)	$	0.20
Net income (loss) per share - diluted common stock (2)	$	(0.15	)	$	0.22	$	(0.77	)	$	0.19

Denominator calculation from basic to diluted:
Weighted average common shares - basic common stock (1)		22,845,040			22,444,246		22,799,981			22,313,546
Stock options and other dilutive awards		93,181			430,075		127,759			420,533
Weighted average common shares - diluted common stock		22,938,221			22,874,321		22,927,740			22,734,079
Shares excluded from diluted weighted average shares:
Stock options		325,734			64,498		325,734			64,498
Restricted stock units and restricted stock awards		509,785			50,203		503,435			63,677
Shares excluded from diluted weighted average shares		835,519			114,701		829,169			128,175

(1)

Unvested restricted stock units and restricted stock awards are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units and restricted stock awards are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units and restricted stock awards are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive. Restricted stock awards are eligible to receive all dividends declared on the Company’s common shares during the vesting period; however, such dividends are not paid until the restrictions lapse.

(2)

Due to net losses for the three and six months ended June 30, 2022, diluted loss per share is the same as basic.