Earnings Per Share

6 Months Ended

Jun. 30, 2025

EARNINGS PER SHARE

Successor Period

Net income is allocated between the Company’s common shares and other participating securities based on their participation rights. The Company has determined that its Series A Preferred Stock represent participating securities and are a class of common stock. As such, the Company uses the two-class method of computing earnings per share. Under this method, net income (or loss) is allocated between the holders of common stock and the holders of the Series A Preferred Stock based on their respective participation rights. Given that holders of Series A Preferred Stock participate in net losses on a 1:1 basis with holders of common stock, the allocation of net losses under the two-class method is equivalent to the allocation of net losses that would result under the if-converted method. Consequently, there is no difference between basic and diluted net loss per share of common stock.

The following table sets forth the computations of basic and diluted loss per share of common stock and Series A Preferred Stock using the two-class method and the if-converted method, respectively, for the three and six months ended June 30, 2025.


	Successor
	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Basic shares:
Numerator:
Net loss	$	(233)	$	(26,026)
Undistributed loss allocated to Series A Preferred Stock	2		212
Net loss available to holders of common stock	$	(231)	$	(25,814)
Denominator:
Weighted average common stock outstanding – basic	121,476,215		121,476,215
Weighted average Series A Preferred Stock outstanding – basic	1,000,000		1,000,000
Basic loss per common stock	$	(0.00)	$	(0.21)
Basic loss per Series A Preferred Stock	$	(0.00)	$	(0.21)

Dilutive shares:
Numerator:
Undistributed loss allocated to common stock	$	(231)	$	(25,814)
Undistributed loss allocated to Series A Preferred Stock	(2)		(212)
Total undistributed loss	$	(233)	$	(26,026)
Denominator:
Weighted average common stock outstanding – basic	121,476,215		121,476,215
Add: dilutive securities




Series A Preferred Stock	1,000,000		1,000,000
Weighted average common stock outstanding – diluted	122,476,215		122,476,215
Weighted average Series A Preferred Stock outstanding – diluted	1,000,000		1,000,000
Diluted loss per common stock	$	(0.00)	$	(0.21)
Diluted loss per Series A Preferred Stock	$	(0.00)	$	(0.21)

For the three and six months ended June 30, 2025, the Company excluded the following potentially dilutive shares from the computation of diluted loss per common stock as the impact would have been anti-dilutive:


	Successor
	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Stock options(1)	—	2,914
Warrants(1)	—	106,451
Time-based RSUs	485,809	367,697
Contingently issuable RSUs	1,703,834	1,703,834
Contingently issuable Series A Preferred Stock dividend(2)	1,577,944	788,972

(1) For the three months ended June 30, 2025, the stock options and warrants were out of the money.
(2) See discussion of the Annual Dividend Amount in “Note 3. Stockholders’ Equity.”

Predecessor Period

Basic and diluted loss per common share for the three and six months ended June 30, 2024 (Predecessor) was calculated as follows:


	Predecessor
	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Basic shares:
Numerator:
Net loss available to common shares	$	(5,450)	$	(6,721)
Denominator:
Weighted average common shares outstanding – basic	5,024,802		5,024,802
Basic loss per common share	$	(1.08)	$	(1.34)

Dilutive shares from stock options	—		—
Weighted average common shares outstanding – diluted	5,024,802		5,024,802
Diluted loss per common share	$	(1.08)	$	(1.34)

For the three and six months ended June 30, 2024 (Predecessor), 187,335 and 185,327 potential dilutive shares, respectively, related to stock options were excluded from the computation of diluted loss per common share because their effect would have been anti-dilutive.

Additionally, the Company had outstanding stock options that were eligible to vest on achievement of certain market thresholds upon a change of control. For the three and six months ended June 30, 2024 (Predecessor), the contingently issuable potential shares were excluded from the computation of basic and diluted earnings per share as the contingency was not met as of the end of the reporting period. These excluded shares were as follows:


			Outstanding as of June 30, 2024 (Predecessor)
Tranche B Options			180,828
Tranche C Options			55,872