EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2025

We compute basic and diluted earnings (loss) per share (“EPS”) by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.

We are required in periods in which we have net income to calculate EPS using the two-class method. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders but does not require the presentation of basic and diluted EPS for securities other than common stock. The two-class method is required because our Series A convertible preferred stock (“Series A Preferred Stock”) had the right to receive dividends or dividend equivalents should we have declared dividends on our common stock as if such holder of the Series A Preferred Stock had been converted to common stock. Under the two-class method, earnings for the period are allocated to the common and preferred stockholders taking into consideration the participation of holders of Series A Preferred Stock in dividends on an as-converted basis. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares. From December 27, 2024 through March 31, 2025, we no longer had any shares of Series A Preferred Stock outstanding, but EPS was calculated as described herein for periods in which the Series A Preferred Stock was outstanding.

Diluted EPS is computed in the same manner as basic EPS except that the denominator is increased to include the number of contingently issuable share-based compensation awards that would have been outstanding unless those additional shares would have been anti-dilutive. Dilutive common stock equivalents include the dilutive effect of in-the-money stock equivalents, excluding any common stock equivalents if their effect would be anti-dilutive. For the diluted EPS calculation, the if-converted method is applied and compared to the two-class method and whichever method results in a more dilutive impact is utilized to calculate diluted EPS. In periods in which we have a net loss, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation.

In periods in which we have a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used because the Series A Preferred Stock does not participate in losses. As such, the net loss was attributed entirely to common stockholders.

The following table summarizes net loss attributable to common stockholders and participating securities used in the calculation of basic and diluted loss per common share:


	Three Months Ended March 31,
(In thousands, except share and per share data)	2025		2024
Basic loss per share:
Net loss attributable to common stock and participating securities used to calculate basic loss per share	$	(9,533)	$	(23,964)
Weighted average common shares outstanding	110,000,095		14,068,320
Dilutive effect of pre-funded warrants	300,357		300,357
Weighted average shares outstanding for EPS	110,300,452		14,368,677
Basic loss per share	$	(0.09)	$	(1.67)

Diluted loss per share:
Net loss attributable to common stock and participating securities used to calculate diluted loss per share	$	(9,533)	$	(23,964)
Weighted average common shares outstanding	110,000,095		14,068,320
Weighted average pre-funded warrants	300,357		300,357



Weighted average shares outstanding for EPS	110,300,452		14,368,677
Diluted loss per share	$	(0.09)	$	(1.67)

The following common stock equivalent shares were excluded from the calculation of diluted loss per share since their impact would have been anti-dilutive for the periods presented:


	Three Months Ended March 31,
	2025	2024
Shares underlying warrants	10,194,174	—
Stock options	1,689,823	295,038
Restricted stock units	142,754	215,646
Shares issuable under the Employee Stock Purchase Plan	228,535	31,938
Share equivalents excluded from EPS	12,255,286	542,622