Workhorse Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2020

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net loss available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted earnings per share is calculated using the treasury stock method, on the basis of the weighted average number of shares outstanding plus the dilutive effect, if any, of stock options, unvested restricted stock and warrants. The if converted method is used for determining the impact of the convertible notes.

The following table shows the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net loss	$	(84,130,722)	$	(11,493,587)	$	(210,705,940)	$	(37,817,959)
Deemed dividends	—		—		—		86,207
Net loss attributable to common stockholders	$	(84,130,722)	$	(11,493,587)	$	(210,705,940)	$	(37,904,166)

Basic weighted average shares outstanding	107,406,000		66,176,921		83,611,526		63,566,295
Dilutive effect of options and warrants	—		—		—		—
Dilutive effect of Convertible Note	—		—		—		—
Diluted weighted average shares outstanding	107,406,000		66,176,921		83,611,526		63,566,295

Anti-dilutive options and warrants excluded from diluted average shares outstanding	5,948,219		32,917,619		5,948,219		32,917,619

Excluded from the table above are the warrant shares related to the Convertible Note, which represent 6.1 million and 13.3 million warrants calculated using the if converted method for the three and nine months ended September 30, 2020, respectively.

Also excluded from the table above are the shares on the conversion of the Convertible Note, which represent 1.0 million and 4.8 million shares of common stock calculated using the if converted method for the three and nine months ended September 30, 2020, respectively. The Convertible Note is convertible into shares of the Company's common stock.