Quarterly report pursuant to Section 13 or 15(d)

NET INCOME (LOSS) PER SHARE

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NET INCOME (LOSS) PER SHARE
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) attributable to Class A and Class B common stockholders by the weighted-average number of shares of each respective class of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to Class A and Class B common stockholders by the weighted-average number of each respective class of common stock outstanding, including the potential dilutive securities. For the calculation of diluted net income (loss) per share, net income (loss) attributable to Class A and Class B common stockholders is adjusted to reflect the potential effect of dilutive securities.
As result of the reverse recapitalization, the Company has retroactively adjusted the weighted average shares outstanding prior to the Acies Merger to give effect to the recapitalization exchange ratio of approximately 0.233 for Old PLAYSTUDIOS common stock used to determine the number of shares of common stock into which they were converted.
The following table sets forth the computation of basic and diluted net income (loss) attributable to Class A and Class B common stockholders per share (in thousands except per share data):
Three Months Ended September 30, 2022 Three Months Ended September 30, 2021
Class A Class B Class A Class B
Numerator
Net income attributable to common stockholders – basic $ 3,175  $ 454  $ 9,796  $ 1,440 
Potential dilutive effect of stock options 21  (21) (15) 15 
Net income attributable to common stockholders – diluted $ 3,196  $ 433  $ 9,781  $ 1,455 
Denominator
Weighted average shares of common stock outstanding - basic 112,873  16,159  109,693  16,130 
Potential dilutive effect of stock options 8,206  1,371  11,123  1,849 
Potential dilutive effect of restricted stock units 8,311  —  —  — 
Weighted average shares of common stock outstanding - diluted 129,390  17,530  120,816  17,979 
Net income attributable to common stockholders per share
Basic $ 0.03  $ 0.03  $ 0.09  $ 0.09 
Diluted $ 0.02  $ 0.02  $ 0.08  $ 0.08 

Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021
Class A Class B Class A Class B
Numerator
Net (loss) income attributable to common stockholders – basic $ (14,045) $ (2,035) $ 8,809  $ 1,310 
Potential dilutive effect of stock options —  —  (207) 207 
Net (loss) income attributable to common stockholders – diluted $ (14,045) $ (2,035) $ 8,602  $ 1,517 
Denominator
Weighted average shares of common stock outstanding - basic 111,389  16,140  90,750  16,130 
Potential dilutive effect of stock options —  —  11,686  1,950 
Weighted average shares of common stock outstanding - diluted 111,389  16,140  102,436  18,080 
Net (loss) income attributable to common stockholders per share
Basic $ (0.13) $ (0.13) $ 0.10  $ 0.08 
Diluted $ (0.13) $ (0.13) $ 0.08  $ 0.08 
For the periods presented above, the net income (loss) per share amounts are the same for Class A and Class B common stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Certificate of Incorporation. The undistributed earnings (losses) for each period are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings (losses) for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings (losses) are allocated on a proportionate basis.
The following equity awards outstanding have been excluded from the computation of diluted net income (loss) per share of common stock for the periods presented due to their anti-dilutive effect:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Stock options 133  51  12,262  — 
RSUs —  —  8,311  — 
Public Warrants 5,382  7,175  5,382  7,175 
Private Warrants 3,821  3,821  3,821  3,821 
Earnout Shares 15,000  15,000  15,000  15,000 
24,336  26,047  44,776  25,996