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, 2023

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.

The computation of EPS is as follows:


	Three months ended June 30,						Six months ended June 30,
	2023			2022			2023			2022
Numerator—basic and diluted:
Net loss	$	(9,826	)	$	(3,442	)	$	(30,175	)	$	(17,656	)

Denominator:
Weighted average common shares - basic common stock (1)		23,146,117			22,845,040			23,078,244			22,799,981
Weighted average common shares - diluted common stock (2)		23,146,117			22,845,040			23,078,244			22,799,981

Net loss per share - basic common stock	$	(0.42	)	$	(0.15	)	$	(1.31	)	$	(0.77	)
Net loss per share - diluted common stock (2)	$	(0.42	)	$	(0.15	)	$	(1.31	)	$	(0.77	)

Denominator calculation from basic to diluted:
Weighted average common shares - basic common stock (1)		23,146,117			22,845,040			23,078,244			22,799,981
Stock options and other dilutive awards		90,017			93,181			211,114			127,759
Weighted average common shares - diluted common stock		23,236,134			22,938,221			23,289,358			22,927,740
Shares excluded from diluted weighted average shares:
Stock options		54,498			325,734			54,498			325,734
Restricted stock units and restricted stock awards		1,209,475			509,785			377,931			503,435
Shares excluded from diluted weighted average shares		1,263,973			835,519			432,429			829,169

(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, 2023 and June 30, 2022, diluted loss per share is the same as basic.