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

3 Months Ended

Mar. 31, 2021

EARNINGS PER SHARE

Basic (loss) income per share of common stock is calculated by dividing net (loss) income by the weighted-average shares outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards and warrants using the treasury stock method, and convertible notes using the if-converted method, are included when calculating the diluted net (loss) income per share of common stock when their effect is dilutive.

The following table presents the reconciliation of net (loss) income used in computing diluted net (loss) income per share of common stock:


	Three Months Ended March 31,
	2021		2020
Net (loss) income	$	(120,506,771)	$	4,756,691
Interest on convertible notes	2,000,000		—
Change in fair value of convertible notes	(15,500,000)		—
Adjusted net (loss) income	$	(134,006,771)	$	4,756,691

The following table presents the reconciliation of basic to diluted weighted average shares used in computing net (loss) income per share of common stock:


	Three Months Ended March 31,
	2021	2020
Weighted average shares outstanding, basic	122,633,856	68,465,759
Stock-based awards and warrants	—	15,303,061
Convertible notes	5,667,328	—
Weighted average shares outstanding, diluted	128,301,184	83,768,820

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net (loss) income per share of common stock, because their effect was anti-dilutive:


	Three Months Ended March 31,
	2021	2020
Stock-based awards and warrants	3,929,451	5,066,931
Convertible notes	—	14,137,319

Excluded from the table above are the warrant shares related to the High Trail Convertible Note, which represented approximately 13.3 million warrants calculated using the if-converted method for the three months ended March 31, 2020. The warrants were issuable at the option of the Company following the full or partial redemption of the High Trail Convertible Note. No warrants were issued in connection with the High Trail Convertible Note and it was fully converted during the year ended December 31, 2020.