Note 9 - Net Income (Loss) Per Share of Common Stock

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

9. Net Income (Loss) Per Share of Common Stock

The following table summarizes the computation of basic and diluted net income (loss) per share of the Company (in thousands, except per share data):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Numerator:
Net income (loss) attributable to common stockholders - basic	$	18,008		$	(18,477	)	$	(31,948	)	$	(31,534	)
Subtract: fair value adjustment of warrant liability (1)		29,592			—			—			—
Net income (loss) attributable to common stockholders - diluted	$	(11,584	)	$	(18,477	)	$	(31,948	)	$	(31,534	)
Denominator:
Weighted-average shares outstanding - basic		75,727			30,505			75,721			25,844
Dilutive effect of common stock warrants		23,038			—			—			—
Dilutive effect of options outstanding		872			—			—			—
Weighted-average shares outstanding - diluted		99,637			30,505			75,721			25,844
Net income (loss) per share:
Basic	$	0.24		$	(0.61	)	$	(0.42	)	$	(1.22	)
Diluted	$	(0.12	)	$	(0.61	)	$	(0.42	)	$	(1.22	)

(1) The Company assumes that the warrants will be share settled as they are considered dilutive and therefore the fair value adjustment is removed from the numerator in the diluted earnings per share calculation.

Basic net income (loss) attributable to common stockholders per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. For the calculation of basic net income (loss) per share, the weighted-average number of common shares outstanding for the period includes the weighted average effect of the Company’s 15,870,199 pre-funded warrants, the exercise of which is not subject to contingencies and requires little or no consideration. Diluted net income (loss) attributable to common stockholders per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for the three months ended June 30, 2022 and for the six months ended June 30, 2023 and 2022, and the effect of the Company's common stock equivalents is anti-dilutive, diluted net loss per common share is the same as basic net loss per common share for those periods.

However, the Company reported net income for the three months ended June 30, 2023, and as a result, net income (loss) per share is calculated separately on a basic and diluted basis for that period. A total of 4,850,241 warrants and 5,721,230 stock options were excluded from the calculation of diluted net income (loss) per share because these securities were anti-dilutive.

The following potentially dilutive securities outstanding have been excluded from the computation of diluted shares outstanding for the three months ended June 30, 2022 and the six months ended June 30, 2023 and 2022:

	Six Months Ended		Three, Six Months Ended
	June 30,		June 30,
	2023		2022
Options to purchase common stock		7,714,248		3,945,453
Common stock warrants		50,029,052		4,850,241