Whole Earth Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2021

NOTE 13: EARNINGS PER SHARE

Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Warrants issued are not considered outstanding at the date of issuance. RSUs and RSAs also are not considered outstanding until they have vested. Contingently issuable shares associated with outstanding PSUs that have cliff vesting based on achievement of a performance condition were not included in the basic earnings per share calculations for the periods presented as the applicable vesting conditions had not been satisfied.

Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average shares outstanding assuming dilution. Dilutive common shares outstanding is computed using the treasury stock method and reflects the additional shares that would be outstanding if dilutive warrants were exercised and restricted stock units and restricted stock awards were settled for common shares during the period.

For warrants that are liability-classified, during the periods when the impact would be dilutive, the Company assumes share settlement of the instruments as of the beginning of the reporting period and adjusts the numerator to remove the change in the fair value of warrant liability and adjusts the denominator to include the dilutive shares using the treasury stock method.

The computation of basic and diluted earnings (loss) per common share for the three and six months ended June 30, 2021 and from June 26, 2020 to June 30, 2020 is shown below (in thousands, except for share and per share data):


	(Successor)
	Three Months Ended June 30, 2021		Six Months Ended June 30, 2021		From June 26, 2020 to June 30, 2020
EPS numerator:
Net income (loss) attributable to common shareholders	$	3,695	$	(8,330)	$	(505)



EPS denominator:
Weighted average shares outstanding - basic	38,458,278		38,444,590		38,426,669
Effect of dilutive securities	1,697,471		—		—
Weighted average shares outstanding - diluted	40,155,749		38,444,590		38,426,669

Net earnings (loss) per share:
Basic	$	0.10	$	(0.22)	$	(0.01)
Diluted	$	0.09	$	(0.22)	$	(0.01)

For the three months ended June 30, 2021, 415,896 warrants were excluded from the diluted EPS calculation because they were determined to be anti-dilutive. For the six months ended June 30, 2021, 20,263,500 warrants, 1,140,149 RSUs and 68,946 RSAs were excluded from the diluted EPS calculation they were determined to be anti-dilutive. For the period from June 26, 2020 to June 30, 2020, 20,263,500 warrants were excluded from the diluted EPS calculation because they were determined to be anti-dilutive.