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Net (Loss) Income Per Share

6 Months Ended

Jun. 30, 2024

Net (Loss) Income Per Share [Abstract]

Net (Loss) Income Per Share

Note 13 — Net (Loss) Income Per Share

Net (loss) income per share calculations for all periods have been adjusted to reflect the Company’s reverse stock splits. Net (loss) income per share was calculated based on the weighted-average number of the Company’s Common Stock outstanding.

Basic net (loss) income per share is calculated using the weighted-average number of Common Stock outstanding during the periods. Diluted net loss per share is computed by giving effect to all potential shares of Common Stock, including convertible notes, outstanding stock options, stock related to unvested restricted stock units, and outstanding warrants to the extent dilutive. Net loss per share, assuming dilution, is equal to basic net loss per share for the three months ended June 30, 2024 and 2023 and six months ended June 30, 2023 because the effect of dilutive securities outstanding during the periods, including convertible notes, options, restricted stock units and warrants computed using the treasury stock method, is anti-dilutive.

The components of basic and diluted net loss per share were as follows:

		Three months ended June 30,								Six months ended June 30,
(In thousands, except share and per share data)		2024				2023				2024				2023
Numerator:
Numerator for basic EPS - net (loss) income available for common stockholders		$	(2,972	)		$	(6,805	)		$	1,264			$	(17,132	)
Effect of dilutive securities:
Interest expense on convertible notes			—				—				520				—
Numerator for diluted EPS - net (loss) income available to common stockholders after assumed conversions		$	(2,972	)		$	(6,805	)		$	1,784			$	(17,132	)
Denominator:
Denominator for basic EPS - weighted-average common stock outstanding			20,812,678				1,549,669				14,853,454				1,312,299
Effect of dilutive securities:
Conversion of convertible notes			—				—				14,917,585				—
Denominator for diluted EPS - adjusted weighted-average common stock outstanding and assumed conversions			20,812,678				1,549,669				29,771,039				1,312,299
Basic net loss (income) per share attributable to common stockholders		$	(0.14	)		$	(4.39	)		$	0.09			$	(13.05	)
Diluted net loss (income) per share attributable to common stockholders		$	(0.14	)		$	(4.39	)		$	0.06			$	(13.05	)

As of June 30, 2024, the Company had convertible notes outstanding with a principal balance of approximately $3.3 million convertible into 2,644,632 shares of Common Stock. During the six months ended June 30, 2024, the Company also converted a portion of the convertible notes into 2,671,633 shares of Common Stock and 15,259,765 Pre-funded Warrants to purchase shares of Common Stock. Given the nominal exercise price of the Company’s issuance of Pre-funded Warrants, such Pre-funded Warrants are included in in the calculation of basic net (loss) income per share and weighted for the period outstanding from issuance to June 30, 2024. The exercise price per warrant is deemed non-substantive when compared to the fair value of the underlying common shares. In determination of the denominator for diluted EPS for the six months ended June 30, 2024, the Company assumed conversion of the 2,671,633 shares of Common Stock and the 15,259,765 Pre-funded Warrants as of the beginning of the period, January 1, 2024, eliminating the weighting of the shares and warrants from issuance to June 30, 2024. The Company also included in the denominator for diluted EPS for the six months ended June 30, 2024, the assumed conversion of 2,644,632 shares of Common Stock related to the convertible notes.

For each of the periods presented, the Company’s potential dilutive securities, which include stock options, restricted stock units, and warrants, have been excluded from the computation of basic and diluted net (loss) income per share with the exception of the Pre-funded Warrants, or penny warrants, which are included in the computation, as detailed above. The weighted-average number of Common Shares outstanding used to calculate both basic and diluted net loss per share attributable to Common Stockholders is the same for the three months ended June 30, 2024 and 2023 and the six months ended June 30, 2023. The Company excluded the following potential Common Stock equivalents presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to Common Stockholders for the periods indicated because including them would have had an anti-dilutive effect:

		Six months ended June 30, 2024				Six months ended June 30, 2023
Shares subject to outstanding stock options			9,950				10,969
Shares subject to unvested restricted stock units			1,827				4,574
Shares subject to outstanding warrants			2,312,238				1,495,001
			2,324,015				1,510,544