Net Loss Per Share

3 Months Ended

Mar. 31, 2025

Note 10. Net Loss Per Share (As Restated)

Basic and diluted net loss per share are calculated using the two-class method in accordance with ASC Topic 260, Earnings Per Share. The two-class method allocates undistributed losses to the Company’s outstanding common stock, and the Preferred Stock, based on each class’s proportionate share of the total weighted-average shares outstanding. Since the Company has never declared dividends, net loss and undistributed losses are equivalent.

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. The process is used for both common stock and Preferred Stock. As the rights and preferences of the Preferred Stock are substantially identical to each other, they are considered a single class of common stock for earnings per share purposes.

For purposes of the diluted net loss per share calculation, incentive stock options, restricted stock units, preferred stock and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company's net loss position. Basic weighted average shares outstanding for the three months ended March 31, 2025 and 2024 include 17,274,293 and 5,176,270, reflectively, shares underlying pre-funded warrants to purchase common shares. As the shares underlying these pre-funded warrants can be issued for little consideration (an exercise price per share equal to $0.001 per share), these shares are deemed to be issued for purposes of basic earnings per share.

The calculation of basic and diluted earnings per share for our common stock and Preferred Stock is as follows:


	For the Three Months Ended March 31,
	2025			2024
(In thousands, except share and per share data)	(As Restated)
Weighted-average common shares outstanding, basic and diluted		77,126,763			29,989,400
Weighted-average shares outstanding of Series X and Series X1 non-voting convertible preferred stock, basic and diluted		114,508			114,508

Net loss used in the calculation of basic and diluted loss per share	$	(6,495	)	$	(23,631	)

Net loss available to common stock	$	(6,000	)	$	(19,495	)
Net loss per share, common stock, basic and diluted	$	(0.08	)	$	(0.65	)

Net loss available to Series X and Series X1 non-voting convertible preferred stock	$	(495	)	$	(4,136	)
Basic and diliuted earnings per share of Series X and Series X1 non-voting convertible preferred stock	$	(4.32	)	$	(36.12	)

The computation of diluted earnings per share excludes incentive stock options, restricted stock units, preferred stock and warrants that are anti-dilutive. The following table provides a summary as of March 31, 2025 and 2024 of common share equivalents that were excluded because their inclusion would have been anti-dilutive.


	For the Three Months Ended March 31,
	2025		2024

Stock options outstanding and other equity awards		3,780,189		15,596,742
Common and preferred warrants outstanding		3,117,540		18,577,333
Total		6,897,729		34,174,075