XOMA Royalty Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Net Income Per Share Attributable to Common Stockholders

Net Income Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2021

Net Income Per Share Attributable to Common Stockholders

Net Income Per Share Attributable to Common Stockholders

11. Net Income Per Share Attributable to Common Stockholders

Potentially dilutive securities are excluded from the calculation of diluted net income per share attributable to common stockholders if their inclusion is anti-dilutive.

The following table shows the weighted-average outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net income per share attributable to common stockholders (in thousands):


	Year Ended December 31,
	2021	2020
Convertible preferred stock	—	—
Common stock options	479	616
Warrants for common stock	—	6
Total	479	622

The following is a reconciliation of the numerator (net income) and denominator (number of shares) used in the calculation of basic and diluted net income per share attributable to common stockholders (in thousands):


	Year Ended December 31,
	2021		2020
Numerator
Net income	$	15,798	$	13,298
Less: Series A accumulated dividends		(2,122)		(88)
Less: Series B accumulated dividends		(2,438)		—
Less: Allocation of undistributed earnings to participating securities		(3,451)		(4,417)
Net income available to common stockholders, basic	$	7,787	$	8,793
Add: Adjustments to undistributed earnings allocated to participating securities		181		217
Net income available to common stockholders, diluted	$	7,968	$	9,010

Denominator
Weighted average shares used in computing basic net income per share available to common stockholders		11,288		10,674
Effect of dilutive stock options		900		824
Effect of dilutive warrants		4		5
Weighted average shares used in computing diluted net income per share available to common stockholders		12,192		11,503
Basic net income per share available to common stockholders	$	0.69	$	0.82
Diluted net income per share of common stock	$	0.65	$	0.78