In the course of preparing the Company’s Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2025, the Company reassessed the rights and preferences of its Preferred Stock, and concluded that, because they are substantially identical to those of its common stock, the Preferred Stock should be treated as a separate class of common stock for purposes of calculating earnings per share in accordance with ASC 260-10, “Earnings Per Share.” As a result, the Company determined that it should have presented earnings per share under the two-class method in prior reporting periods.

Additionally, in connection with this reassessment, the Company concluded that it had incorrectly classified the Preferred Stock as permanent equity in the consolidated balance sheets. The Preferred Stock includes a provision that, upon the occurrence of a fundamental transaction (which includes a third-party tender or exchange offer) in which more than 50 percent of the common stockholders receive cash or other assets, entitles holders of Preferred Stock, upon any subsequent conversion, are entitled to receive the same form of consideration, even if they did not participate in the original transaction. Because this feature may result in settlement in cash or other non-equity consideration upon an event outside the Company’s control, the Preferred Stock does not meet the criteria for permanent equity classification and is instead classified as temporary equity under ASC 480-10-S99-3A. Although a tender offer is not considered probable as of the current reporting date and redemption is not deemed probable, the existence of this provision requires classification as temporary equity. The Preferred Stock is not subsequently remeasured to its redemption value because redemption is not considered probable.

As a result of these conclusions, the Company determined that a correction was necessary with respect to the classification of Preferred Stock as temporary equity and the presentation of earnings per share under the two-class method.

Accordingly, the accompanying financial statements as of and for the three and nine months ended September 30, 2024, have been restated to correct the classification of the Preferred Stock as temporary equity and to include EPS calculations under the two-class method.

The impact of the correction of the misstatements is summarized below (in thousands):


	As of September 30, 2024
	As Previously Reported		Restatement Impact			As Restated

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

Convertible preferred stock, 5,000,000 shares authorized at September 30, 2024 and December 31, 2023:
Series X1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares designated; 110,086 shares issued and outstanding at September 30, 2024 and December 31, 2023	$	—	$	53,543		$	53,543
Series X non-voting convertible preferred stock, $0.001 par value, 10,000 shares designated; 4,422 shares issued and outstanding at September 30, 2024 and December 31, 2023		—		2,151			2,151

Stockholders’ equity:
Convertible preferred stock, 5,000,000 shares authorized at September 30, 2024 and December 31, 2023:
Series X1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares designated; 110,086 shares issued and outstanding at September 30, 2024 and December 31, 2023		—		—			—
Series X non-voting convertible preferred stock, $0.001 par value, 10,000 shares designated; 4,422 shares issued and outstanding at September 30, 2024 and December 31, 2023		—		—			—
Additional paid-in capital		386,884		(55,694	)		331,190
Total stockholders’ equity	$	76,058	$	(55,694	)	$	20,364


	For the Three Months Ended September 30, 2024						For the Nine Months Ended September 30, 2024
(In thousands, except share and per share data)	As Previously Reported			As Restated			As Previously Reported			As Restated

Net loss attributable to common shares - diluted	$	(17,504	)	$	(15,703	)	$	(61,086	)	$	(53,230	)
Diluted earnings per share of common stock	$	(0.32	)	$	(0.28	)	$	(1.42	)	$	(1.23	)
Weighted-average number of shares outstanding - diluted		55,478,342			55,478,342			43,106,746			43,106,746

Net income attributable to Series X and Series X1 non-voting convertible preferred stocks - basic	$	—		$	6,666		$	—		$	852
Basic earnings per share of Series X and Series X1 non-voting convertible preferred stock	$	—		$	58.21		$	—		$	7.44
Weighted-average shares outstanding of Series X and Series X1 non-voting convertible preferred stock, basic		—			114,508			—			114,508

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