Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2024

Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period (See Note 9, “Debt and Convertible Notes Payable” and Note 13, “Stockholders’ Equity”). Diluted earnings (loss) per common share is calculated by dividing the adjusted net income (loss) by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive. Potentially dilutive common share equivalents consist of incremental shares of common stock issuable upon conversion of convertible notes payable, exercise of stock warrants and vesting and settlement of stock awards. The dilutive effect of non-vested stock issued under share‑based compensation plans, shares issuable under the Employee Stock Purchase Plan (ESPP), employee stock options outstanding, and the Pre-Funded stock warrants are computed using the treasury stock method. The dilutive effect of the Convertible Notes is computed using the if‑converted method.

The calculation of the basic and diluted earnings (loss) per share for the years ended December 31, 2024 and 2023 is as follows (in thousands):


	Years ended December 31,
		2024		2023
Numerator:
Net income for basic earnings per share		$	10,498	$	24,713
Adjustments to net income available to shareholders
Paid-in-Kind interest expense on convertible notes payable and Contract Consideration Convertible Notes Payable		—		2,284
Valuation gain on Contract Consideration Convertible Notes Payable carried at fair value		—		(29,969)
Adjusted net income (loss) for diluted earnings per share		$	10,498	$	(2,972)





Denominator:
Basic weighted average shares outstanding		29,534		24,830
Dilutive effect of convertible notes payable		—		3,547
Dilutive effect of the June 2022 warrants		1,210		—
Dilutive effect of stock options and restricted shares		145		—
Diluted weighted average shares outstanding		30,889		28,377

Basic earnings per share		$	0.36	$	1.00
Diluted earnings (loss) per share		$	0.34	$	(0.10)
Anti-dilutive incremental shares excluded from denominator for diluted earnings computation

Average number of diluted shares for June 2022 warrants (1)		—		1,251
Average number of diluted shares for options and restricted stock (1)		—		94

(1) These items were not included in the dilution calculation for the year ended December 31, 2023 due to their anti-dilutive effect as it would reduce the loss per share.