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, 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 September 30,					Nine months ended September 30,
	2022			2021		2022			2021
Numerator—basic and diluted:
Net income (loss)	$	(9,506	)	$	12,174	$	(27,162	)	$	16,544

Denominator:
Weighted average common shares - basic common stock (1)		22,882,333			22,619,272		22,827,733			22,416,575
Weighted average common shares - diluted common stock (2)		22,882,333			22,854,229		22,827,733			22,803,355

Net income (loss) per share - basic common stock	$	(0.42	)	$	0.54	$	(1.19	)	$	0.74
Net income (loss) per share - diluted common stock (2)	$	(0.42	)	$	0.53	$	(1.19	)	$	0.73

Denominator calculation from basic to diluted:
Weighted average common shares - basic common stock (1)		22,882,333			22,619,272		22,827,733			22,416,575
Stock options and other dilutive awards		152,783			234,957		143,802			386,780
Weighted average common shares - diluted common stock		23,035,116			22,854,229		22,971,535			22,803,355
Shares excluded from diluted weighted average shares:
Stock options		320,734			88,391		320,734			54,498
Restricted stock units and restricted stock awards		480,602			67,374		447,775			69,062
Shares excluded from diluted weighted average shares		801,336			155,765		768,509			123,560

(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, 2022, diluted loss per share is the same as basic.