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, 2022

EARNINGS PER SHARE

Basic loss per share of common stock is calculated by dividing net loss 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 per share of common stock when their effect is dilutive.

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


	Three Months Ended March 31,
	2022		2021
Net loss	$	(22,054,535)	$	(120,506,771)
Interest on convertible notes	—		2,000,000
Change in fair value of convertible notes	—		(15,500,000)
Adjusted net loss	$	(22,054,535)	$	(134,006,771)

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


	Three Months Ended March 31,
	2022	2021
Weighted average shares outstanding, basic	151,939,491	122,633,856
Stock-based awards and warrants	—	—
Convertible notes	—	5,667,328
Weighted average shares outstanding, diluted	151,939,491	128,301,184

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


	Three Months Ended March 31,
	2022	2021
Stock-based awards and warrants	6,525,999	3,929,451
Convertible notes(1)	7,828,917	—

(1) Represents shares issued in exchange of convertible notes on April 21, 2022. See Note 5, Debt, for additional information regarding shares issued subsequent to the date of the Condensed Consolidated Financial Statements.