Net Loss per Share

3 Months Ended

Mar. 31, 2025

Note 8. Net loss per share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period. Shares of common stock that are potentially issuable for little or no cash consideration at issuance, such as the Company's pre-funded warrants issued in October 2023 and in connection with the exercise of certain May 2023 Tranche A and Tranche B warrants, are considered outstanding common stock and are included in the calculation of basic and diluted net loss per share in connection with ASC 260 Earnings Per Shares. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding and dilutive potential common stock that would be issued upon the exercise or vesting of common stock awards and exercise of common stock warrants that are not pre-funded. The Company applies the two-class method to calculate basic and diluted earnings per share as its warrants issued in March 2022, May 2023 and October 2023 are participating securities. However, the two-class method does not impact the net loss per share of common stock as the March 2022, May 2023 and October 2023 common warrants issued do not participate in losses. For the three months ended March 31, 2025 and 2024, the effect of

issuing potential common stock is anti-dilutive due to the net losses in those periods and therefore the number of shares used to compute basic and diluted net loss per share are the same in each of those periods.

The following securities are the weighted-average common shares outstanding used to calculate basic and diluted net loss per common share:


	Three Months Ended March 31,
	2025		2024
Common stock		45,928,793		32,432,524
May 2023 Tranche A pre-funded warrants		-		2,408,830
May 2023 Tranche B pre-funded warrants		-		451,632
October 2023 pre-funded warrants		250,000		915,385
Total		46,178,793		36,208,371

The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding for the periods presented because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares):


	As of March 31,
	2025		2024
Warrants issued to 2010/2012 convertible note holders to purchase common stock		-		6,804
Warrants issued to underwriter to purchase common stock		-		1,100
March 2022 common warrants		516,265		1,809,068
May 2023 Tranche B warrants		870,628		6,600,000
Options to purchase common stock		3,406,719		3,102,856
Outstanding restricted stock units		361,991		299,280
Total		5,155,603		11,819,108