Note 8 - Earnings Per Share

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

8. Earnings Per Share

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 June 30,						For the Six Months Ended June 30,
	2025			2024			2025			2024
Numerator:
Net loss	$	(15,062	)	$	(6,929	)	$	(20,240	)	$	(37,936	)
Denominator:
Weighted average shares outstanding – basic		19,417			10,567			18,820			10,016
Potential common shares – options / warrants (treasury stock method)		—			—			—			—
Weighted average shares outstanding – diluted		19,417			10,567			18,820			10,016
Shares excluded (anti-dilutive)		8,413			1,486			8,409			959
Net loss per common share:
Basic	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)
Diluted	$	(0.78	)	$	(0.66	)	$	(1.08	)	$	(3.79	)

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 June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
Outstanding stock options		31		9		27		10
Outstanding warrants		8,382		1,477		8,382		949
Total anti-dilutive shares		8,413		1,486		8,409		959