Earnings Per Share

3 Months Ended

Mar. 31, 2025

The Company calculates earnings per share (“EPS”) as required by FASB ASC Topic No. 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the

period, plus the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method.

The 845,000 shares of the Company's Common Stock issuable upon exercise of the Pre-Funded Warrants, described in Note 4 to these consolidated financial statements, were included in the weighted average outstanding Common Stock in the calculation of basic and diluted net loss per share from May 2024 through their exercise in August 2024, as the exercise price was non-substantive at $0.001 per share.

For periods with a net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, Common Stock subject to repurchase by the Company, options, warrants (other than the Pre-Funded Warrants), and convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

The following table sets forth the details of basic and diluted earnings per share (unaudited, in thousands, except per share amounts):


	For the Three Months Ended March 31,
	2025		2024

Numerator:
Net loss	$	(5,178)	$	(31,007)
Denominator:
Weighted average shares outstanding – basic	18,216		9,466
Potential common shares – options / warrants (treasury stock method)	—		—
Weighted average shares outstanding – diluted	18,216		9,466

Shares excluded (anti-dilutive)	8,406		431

Net loss per common share:
Basic	$	(0.28)	$	(3.28)
Diluted	$	(0.28)	$	(3.28)

The following weighted average shares were excluded from the computation of diluted net loss per share as the impact of including those shares would be anti-dilutive (unaudited, in thousands):


	For the Three Months Ended March 31,
	2025	2024



Outstanding stock options	24	10
Outstanding warrants	8,382	421
Total anti-dilutive shares	8,406	431