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

9 Months Ended

Sep. 30, 2023

7. 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 September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Numerator—basic and diluted:
Net loss	$	(45,719	)	$	(9,506	)	$	(75,894	)	$	(27,162	)

Denominator:
Weighted average common shares - basic common stock (1)		23,231,217			22,882,333			23,129,795			22,827,733
Weighted average common shares - diluted common stock (2)		23,231,217			22,882,333			23,129,795			22,827,733

Net loss per share - basic common stock	$	(1.97	)	$	(0.42	)	$	(3.28	)	$	(1.19	)
Net loss per share - diluted common stock (2)	$	(1.97	)	$	(0.42	)	$	(3.28	)	$	(1.19	)

Denominator calculation from basic to diluted:
Weighted average common shares - basic common stock (1)		23,231,217			22,882,333			23,129,795			22,827,733
Stock options and other dilutive awards		149,236			152,783			301,309			143,802
Weighted average common shares - diluted common stock		23,380,453			23,035,116			23,431,104			22,971,535

Shares excluded from diluted weighted average shares:
Stock options		57,364			320,734			54,498			320,734
Restricted stock units and restricted stock awards		1,186,231			480,602			849,398			447,775
Shares excluded from diluted weighted average shares		1,243,595			801,336			903,896			768,509

(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 nine months ended September 30, 2023 and September 30, 2022, diluted loss per share is the same as basic.