|NEXEO SOLUTIONS, INC. filed this Form 10-Q on 05/10/2018|
As of March 31, 2018, there were 50,025,000 warrants outstanding to purchase 25,012,500 shares of common stock at an exercise price of $11.50 per share.
The authorized preferred stock of the Company consists of 1,000,000 shares. As of March 31, 2018, there were no shares of preferred stock issued and outstanding.
During the six months ended March 31, 2018, in connection with the vesting of RSUs, 2,777 shares of common stock were transferred to the Company to satisfy the employees’ tax withholding obligations in connection with the vesting. Following the transfer, these shares were not canceled and are therefore classified as treasury stock. Total treasury stock as of March 31, 2018 is 12,353 shares.
12. Earnings per Share
A reconciliation of the numerators and denominators of the basic and diluted per share computation follows.
Dilutive computations during the current period contain additional incremental common shares which are attributable to the outstanding unvested restricted stock awards issued to directors and employees and restricted stock units awards to employees; the outstanding stock options were not included as the result would have been anti-dilutive. During the three and six months ended March 31, 2017, the outstanding restricted stock awards and restricted stock unit awards were not included as their impact on the Company’s net loss would have been anti-dilutive. For the three and six months ended March 31, 2018 and 2017, there were 12,476,250 Founder Shares excluded from the basic and diluted computations because such shares were subject to forfeiture, and PSU awards, which were not included in the computation of diluted shares outstanding because performance targets and/or market conditions were not yet met for these awards. Diluted shares outstanding also did not include 25,012,500 shares of common stock issuable on the exercise of 50,025,000 warrants because the warrants were out-of-the-money for the three and six months ended March 31, 2018 and 2017.