Quantum Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NET LOSS PER SHARE

NET LOSS PER SHARE

3 Months Ended

Jun. 30, 2024

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, 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 income (loss) per share attributable to common stockholders (in thousands, except per share data):


	Three Months Ended June 30,
	2024		2023

Numerator:
Net income (loss) attributable to common stockholders used in basic earnings per share	$	(20,820)	$	(9,142)
Add back: Excluded (gain) loss on assumed exercise of liability-classified common stock warrants during the period	—		—
Net loss attributable to common stockholders used in diluted earnings per share	$	(20,820)	$	(9,142)


Denominator:
Weighted average common shares outstanding used in basic earnings per share	95,850		93,673
Incremental common shares from:
Assumed exercise of dilutive warrants	—		38
Weighted average common shares outstanding used in diluted earnings per share	95,850		93,711

Net income (loss) per share attributable to common stockholders - Basic	$	(0.22)	$	(0.10)
Net income (loss) per share attributable to common stockholders - Diluted	$	(0.22)	$	(0.10)

The dilutive impact related to common stock from restricted stock units and warrants is determined by applying the treasury stock method to the assumed vesting of outstanding restricted stock units and the exercise of outstanding

warrants. The dilutive impact related to common stock 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 following outstanding stock-based instruments which are comprised of performance share units, restricted stock units, and warrants were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive (in thousands):


Three Months Ended June 30,
2024						2023
15,006						7,042

The Company had outstanding market based restricted stock units as of June 30, 2024 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 0.3 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 June 30, 2024.