Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2024

Net Income (Loss) per Share

Net Income (Loss) per Share

5. Net Income (Loss) per Share

The computation of basic EPS is based on the weighted-average number of the Company’s Common Stock outstanding. The computation of diluted EPS is based on the weighted-average number of the Company’s Common Stock outstanding and potential dilutive common stock, which primarily includes conversion of convertible debt. Diluted EPS is computed using the more dilutive of the treasury stock method, which reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted to the Company’s Common Stock. Common Stock options, warrants and unvested restricted stock units were not included in dilutive EPS as their impact would be antidilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the periods presented (in thousands, except share and per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Numerator:
Net income (loss) attributable to common stockholders, basic	$	8,986	$	(3,547)	$	(16,035)	$	(18,037)
Gain from change in fair value of convertible debt		(23,397)		(6,036)		(10,372)		—
Net loss attributable to common stockholders, diluted	$	(14,411)	$	(9,583)	$	(26,407)	$	(18,037)
Denominator:
Weighted average shares outstanding, basic		36,154,521		36,068,130		36,139,873		36,056,649
Shares issuable upon the conversion of the convertible debt		22,092,105		20,476,568		22,092,105		—
Weighted average shares outstanding, diluted		58,246,626		56,544,698		58,231,978		36,056,649
Net income (loss) per share, basic	$	0.25	$	(0.10)	$	(0.44)	$	(0.50)
Net loss per share, diluted	$	(0.25)	$	(0.17)	$	(0.45)	$	(0.50)

The following outstanding securities as of June 30, 2024 and December 31, 2023 have been excluded from the computation of dilutive weighted average shares outstanding, as they would have been anti-dilutive:

	June 30, 2024	December 31, 2023
Outstanding stock options	4,645,737	3,165,216
Unvested restricted stock units	290,000	200,000
Shares issuable upon the conversion of convertible debt	—	21,293,861
Outstanding warrants	19,365,847	19,365,847
Total	24,301,584	44,024,924