Quantum Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

NET LOSS PER SHARE

NET LOSS PER SHARE

12 Months Ended

Mar. 31, 2021

NET LOSS PER SHARE Equity Instruments Outstanding

The Company has stock options, performance share units, restricted stock units and options to purchase shares under its ESPP, granted under various stock incentive plans that, upon exercise and vesting, respectively, would increase shares outstanding. The Company has also issued warrants to purchase shares of the Company’s stock.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per-share data):


	Year Ended March 31,
	2021		2020		2019
Numerator:
Net loss	$	(35,459)	$	(5,210)	$	(42,797)
Denominator:
Weighted average shares - basic and diluted	42,852		37,593		35,551
Net loss per share - basic and diluted	$	(0.83)	$	(0.14)	$	(1.20)

The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive (in thousands):


	Year Ended March 31,
	2021	2020	2019
Stock awards	1,818	931	307
Warrants	6,573	6,312	4,657
ESPP	11	223	—
Total	8,402	7,466	4,964

The dilutive impact related to common shares from stock incentive plans and outstanding warrants is determined by applying the treasury stock method to the assumed vesting of outstanding performance share units and restricted stock units and the exercise of outstanding options and warrants. The dilutive impact related to common shares from contingently issuable performance share units is determined by applying a two-step approach using both the contingently issuable share guidance and the treasury stock method.

The Company has outstanding market based restricted stock units as of March 31, 2021 that were eligible to vest into shares of common stock subject to the achievement of certain stock price targets in addition to a time-based vesting period. These contingently issuable shares are excluded from the computation of diluted earnings per share if, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. There were 0.5 million shares of contingently issuable market-based restricted stock units that were excluded from the table above as the market conditions were not satisfied as of March 31, 2021.