• Filing Date: 2020-06-24
  • Form Type: 10-K
  • Description: Annual report
v3.20.1
NET LOSS PER SHARE
12 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
NET LOSS PER SHARE
Equity Instruments Outstanding
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, respectively, would increase shares outstanding. In addition, the Company had Convertible Notes, which were convertible at the option of the holders at any time prior to maturity into shares of Quantum common stock. During November 2017, the Company paid all outstanding principal and accrued interest on the Convertible Notes. The Company has also issued warrants to purchase shares of the Company’s stock that are related to the TCW Term Loan and the Senior Secured Term Loan as described within Note 4: Debt to the consolidated financial statements.
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per-share data):
 
Year Ended March 31,
 
2020
 
2019
 
2018
Numerator:
 
 
 
 
 
Net loss
$
(5,210
)
 
$
(42,797
)
 
$
(43,346
)
Denominator:
 
 
 
 
 
Weighted average shares - basic and diluted
37,593

 
35,551

 
34,687

Net loss per share - basic and diluted
$
(0.14
)
 
$
(1.20
)
 
$
(1.25
)


The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive (in thousands):
 
Year Ended March 31,
 
2020
 
2019
 
2018
Stock awards
931

 
307

 
1,838

Warrants
6,312

 
4,657

 
75

ESPP
223

 

 

Total
7,466

 
4,964

 
1,913



The dilutive impact related to common shares from stock incentive plans and outstanding warrants is determined by applying the treasury stock method to the assumed vesting of outstanding performance share units and restricted stock units and the exercise of outstanding options and warrants. The dilutive impact related to common shares 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.

We had outstanding market based restricted stock units as of March 31, 2020 that were eligible to vest into shares of common stock subject to the achievement of certain average 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 0.9 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 March 31, 2020.

On November 18, 2019, 3.8 million warrants issued by the Company related to the TCW Term Loan agreement were exercised on a cashless basis, resulting in the issuance of 2.8 million shares of common stock.