Skillsoft Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 16 - Net Loss Per Share

Note 16 - Net Loss Per Share

6 Months Ended

Jul. 31, 2023

(16) Net Loss Per Share

Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan using the treasury stock method.

The following sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	*Three Months Ended July 31,*						*Six Months Ended July 31,*
	*2023*			*2022*			*2023*			*2022*
Net income (loss) from continuing operations	$	(31,999	)	$	(127,316	)	$	(75,541	)	$	(150,434	)
Net income (loss) from discontinued operations		—			5,817			(682	)		7,292
Net income (loss)	$	(31,999	)	$	(121,499	)	$	(76,223	)	$	(143,142	)

Weighted average common shares outstanding:
Ordinary – Basic and diluted		160,098			164,089			160,836			153,442

Net income (loss) per share:
Ordinary – Basic and diluted - continuing operations	$	(0.20	)	$	(0.78	)	$	(0.47	)	$	(0.98	)
Ordinary – Basic and diluted - discontinued operations		—			0.04			—			0.05
Ordinary – Basic and diluted	$	(0.20	)	$	(0.74	)	$	(0.47	)	$	(0.93	)

During the three and six months ended July 31, 2023 and July 31, 2022, the Company incurred net losses and, therefore, the effect of the Company’s potentially dilutive securities was not included in the calculation of diluted loss per share as the effect would be anti-dilutive. The following contains share/unit totals with a potentially dilutive impact (in thousands):

	*Three Months Ended July 31,*				*Six Months Ended July 31,*
	*2023*		*2022*		*2023*		*2022*
Warrants to purchase common shares		61,967		61,967		61,967		61,967
Stock options		2,028		2,826		2,090		2,826
RSUs		21,872		14,408		17,530		14,408
Total		85,867		79,201		81,587		79,201