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Note 10 - Net Loss Per Share
3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 10. Net Loss per Share

 

The Company’s Series A Convertible Preferred Stock, of which no shares were outstanding as of March 31, 2025, Series X Convertible Preferred Stock, and outstanding warrants to purchase common stock have participation rights to any dividends that may be declared in the future, such that they are participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to the participating securities since the holders have no contractual obligation to share in the losses of the Company.

 

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at March 31, 2025, consisted of 1,265,601 shares of common stock issuable upon conversion of Series X Convertible Preferred Stock, 15,960,613 shares of common stock issuable upon exercise of outstanding warrants, 50,001 restricted stock awards, and 2,166,184 shares of common stock issuable upon exercise of vested stock options. The weighted-average number of common shares outstanding as of  March 31, 2025 includes the shares held in abeyance upon the exercise of certain existing warrants (see Note 11, Equity Offerings). In connection with the 2024 Warrant Inducement Offer, the Company agreed to issue the number of shares of common stock that would not cause a holder to exceed their beneficial ownership limitation and to hold the remaining balance of shares of common stock in abeyance. Accordingly, the Company held 2,157,000 shares of common stock in abeyance as of March 31, 2025 (the “Abeyance Shares”). The Abeyance Shares are evidenced through the holders’ existing warrants, which are now deemed to be fully prepaid. Since the Abeyance Shares are issuable for no consideration and do not contain any other conditions that must be satisfied by the holder to ultimately receive such shares of common stock, the Abeyance Shares were included in the weighted-average number of common shares and excluded from the anti-dilutive number of warrants identified above as of March 31, 2025.

 

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at March 31, 2024, consisted of 231,412 shares of Series A Convertible Preferred Stock, 1,265,601 shares of Series X Convertible Preferred Stock, 1,104,214 warrants, and 61,459 stock options.