Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2025

Note 10. Net Income (Loss) Per Share

Basic and diluted net income (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 income/loss and undistributed losses are equivalent.

Basic net income (loss) per common share is calculated by dividing the net income (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 income (loss) per share is computed by dividing the net income (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 income (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 income (loss) per share because their effect would be anti-dilutive. Basic weighted average shares outstanding for the nine months ended September 30, 2025 and 2024 include 17,274,293 and 12,342,786, respectively, 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 September 30,						For the Nine Months Ended September 30,
	2025			2024			2025			2024
(In thousands, except share and per share data)				(As Restated)						(As Restated)
Net income (loss)	$	(17,459	)	$	76,971		$	(35,170	)	$	8,433
Undistributed earnings allocated to participating securities		—			(22,542	)		—			(2,882	)
Net income (loss) attributable to common shares - basic	$	(16,130	)	$	54,429		$	(32,492	)	$	5,551
Basic earnings per share of common stock	$	(0.21	)	$	1.05		$	(0.42	)	$	0.13
Weighted-average number of shares outstanding, basic		77,156,068			51,945,920			77,146,407			41,443,049

Allocated undistributed earnings allocated to participating common stock warrants		—			15,876			—			2,030
Net loss attributable to common shares - diluted	$	(16,130	)	$	(15,703	)	$	(32,492	)	$	(53,230	)
Diluted earnings per share of common stock	$	(0.21	)	$	(0.28	)	$	(0.42	)	$	(1.23	)
Weighted-average number of shares outstanding - diluted		77,156,068			55,478,342			77,146,407			43,106,746

Net income (loss) attributable to Series X and Series X1 non-voting convertible preferred stock - basic	$	(1,330	)	$	6,666		$	(2,679	)	$	852
Basic earnings per share of Series X and Series X1 non-voting convertible preferred stock	$	(11.61	)	$	58.21		$	(23.40	)	$	7.44
Weighted-average shares outstanding of Series X and X1 non-voting convertible preferred stock, basic		114,508			114,508			114,508			114,508

Net loss attributable to Series X and Series X1 non-voting convertible preferred stock - diluted	$	(1,330	)	$	(1,801	)	$	(2,679	)	$	(7,856	)
Diluted earnings per share of Series X and Series X1 non-voting convertible preferred stock	$	(11.61	)	$	(15.73	)	$	(23.40	)	$	(68.60	)
Weighted-average shares outstanding of Series X and Series X1 non-voting convertible preferred stock, diluted		114,508			114,508			114,508			114,508

The computation of diluted earnings per share, common stock, excludes incentive stock options, restricted stock units, preferred stock and warrants that are anti-dilutive. The following table provides a summary as of September 30, 2025 and 2024 of common share equivalents that were excluded because their inclusion would have been anti-dilutive.


	For the Nine Months Ended September 30,
	2025		2024

Preferred Stock		—		6,361,567
Stock options outstanding and other equity awards		7,372,039		16,543,376
Common and preferred warrants outstanding		—		18,567,751
Total		7,372,039		41,472,694