Net Loss Per Share
|3 Months Ended|
Mar. 31, 2020
|Earnings Per Share [Abstract]|
|Net Loss Per Share||
Net Loss Per Share
Basic net loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net loss per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock awards, restricted stock units and convertible notes using the treasury stock method, if dilutive.
The Company accounts for the effect of its convertible notes (See “Note 9—Debt”) on diluted net loss per share using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company’s option. As a result, the Convertible Notes due 2023 will have no effect on diluted net loss per share until the Company’s stock price exceeds the conversion price of $68.31 per share and certain other criteria are met, or if the trading price of the convertible notes meets certain criteria. In the period of conversion, the convertible notes will have no impact on diluted net loss per share if they are settled in cash and will have an impact on dilutive net loss per share if they are settled in shares upon conversion.
The following table provides the numerators and denominators used in computing basic and diluted net loss per share attributable to Envestnet, Inc.:
As the Company was in a loss position for all periods presented, all potentially dilutive securities were anti-dilutive. Securities that were anti-dilutive and therefore excluded from the computation of diluted net loss per share were as follows:
The entire disclosure for earnings per share.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef