U.S. Well Services, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2020

NOTE 12 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional common shares that could have been outstanding assuming the exercise of stock options, exercise of warrants, conversion of Series A and Series B preferred stock, conversion of Class B common stock, vesting of restricted shares of Class A common stock, and issuance of Class A common stock associated with the deferred stock units and certain performance awards.

Basic and diluted net income (loss) per share excludes the income (loss) attributable to and shares associated with the 1,609,677 Class A shares that are subject to cancellation on November 9, 2024 if certain market conditions have not been met. The Company included in the calculation accrued dividends on Series A and Series B preferred stock and related deemed and imputed dividends.

The following table sets forth the calculation of basic and diluted earnings (loss) per share for the periods indicated based on the weighted average number of shares of Class A common stock outstanding for the period:

	Years Ended December 31,
	2020			2019
Basic Net Income (Loss) Per Share
Numerator:
Net loss attributable to U.S. Well Services, Inc.	$	(235,665	)	$	(93,913	)
Net loss attributable to cancellable Class A shares		5,713			2,915
Basic net loss attributable to U.S. Well Services, Inc. shareholders		(229,952	)		(90,998	)
Dividends accrued on Series A preferred stock		(7,214	)		(4,050	)
Dividends accrued on Series B preferred stock		(2,049	)		-
Deemed and imputed dividends on Series A preferred stock		(11,666	)		(11,206	)
Deemed dividends on Series B preferred stock		(564	)		-
Basic net loss attributable to U.S. Well Services, Inc. common shareholders	$	(251,445	)	$	(106,254	)

Denominator:
Weighted average shares outstanding		66,400,924			51,853,183
Cancellable Class A common stock		(1,609,677	)		(1,609,677	)
Basic and diluted weighted average shares outstanding		64,791,247			50,243,506
Basic and diluted net income (loss) per share attributable to Class A shareholders	$	(3.88	)	$	(2.11	)

A summary of securities excluded from the computation of diluted earnings per share is presented below for the applicable periods:

	Years Ended December 31,
	2020		2019
Diluted earnings per share:
Anti-dilutive stock options		877,266		1,068,162
Anti-dilutive warrants		14,428,150		15,680,651
Anti-dilutive restricted stock		1,449,287		2,723,637
Anti-dilutive deferred stock units		8,911,858		-
Anti-dilutive Pool B awards		10,142,494		-
Anti-dilutive Class B common stock convertible into Class A common stock		2,302,936		5,500,692
Anti-dilutive Series A preferred stock convertible into Class A common stock		9,058,176		8,853,028
Anti-dilutive Series B preferred stock convertible into Class A common stock		78,245,727		-
Potentially dilutive securities excluded as anti-dilutive		125,415,894		33,826,170