XML 20 R9.htm IDEA: XBRL DOCUMENT

Note 3 - Net Loss Per Share

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3—Net Loss Per Share

Basic net income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share (“Diluted EPS”) is computed by dividing net income (loss) by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Our potential dilutive securities include common shares related to our stock options which are calculated using the treasury stock method. Our potential dilutive securities related to our convertible senior notes and share-settled liabilities are calculated using the if-converted method. In periods where we have a net loss from continuing operations but overall net income, we do not compute Diluted EPS because the effect would be anti-dilutive. When there is a net loss, potentially dilutive securities, like stock options, warrants, or convertible debt, are typically excluded from the diluted net loss per share calculation. Potentially dilutive securities excluded from Diluted EPS are calculated based on a weighted average of days in the quarter from when the respective transactions occurred and are shown as follows:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2025				2024				2025				2024
2029 Notes convertible to common stock ⁽¹⁾			5,915,742				—				2,974,213				—
2026 Notes convertible to common stock ^(1)(2)(3)			3,280,240				9,714,522				4,281,266				10,696,990
Outstanding options to purchase common stock			981,651				84,864				2,790,290				90,635
Share-settled liability⁽⁴⁾			552,662				—				277,858				—
Total potentially dilutive shares excluded from net loss per share			10,730,295				9,799,386				10,323,627				10,787,625

	(1)	On May 14, 2025, we exchanged $70.8 million aggregate principal amount of our 2026 Notes for 2029 Notes on a one-for-one basis in the Convertible Note Exchange and recorded a reduction of an additional $10.0 million aggregate principal amount of our 2026 Notes to be equitized pursuant to the Equitization Transaction. The 2029 Notes are subject to a conversion arrangement that potentially increases the dilutive effect of conversion as described in “Note 6 — Debt.”
	(2)	The 2026 Notes are subject to a capped call arrangement that potentially reduces the dilutive effect of conversion as described in “Note 6 — Debt.” Any potential impact of the capped call arrangement is excluded from this table.
	(3)	On June 3, 2024, we repurchased $118.1 million of our 2026 Notes reducing any effect of the dilution related to these notes. (For further details refer to “Note 6 — Debt”).
	(4)	On May 12, 2025, the Company entered into Note Conversion Agreements to exchange $10.0 million of aggregate principal of our 2026 Notes for shares of our common stock reducing the effect of dilution on these notes. The Note Conversion Agreements provide for delivery of the common stock in three tranches. The above calculation assumes dilution to occur at the stock price at June 30, 2025. (For further details refer to “Note 6 — Debt”).