Net (Loss) Earnings Per Share

3 Months Ended

Mar. 31, 2024

Basic net (loss) earnings per share of common stock is computed by dividing net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period, without consideration for potential dilutive shares of common stock. Diluted net loss per share of common stock is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and if-converted method, as applicable. Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities, which include convertible preferred stock.

Under the two-class method, net earnings for the three months ended March 31, 2023 are adjusted by the difference between the fair value of consideration transferred and the carrying amount of convertible preferred stock during periods where the Company redeems its convertible preferred stock. The remaining earnings (undistributed earnings) are allocated to common stock and each series of convertible preferred stock to the extent that each preferred security may share in earnings as if all of the earnings for the period had been distributed. The total earnings allocated to common stock are then divided by the number of outstanding shares to which the earnings are allocated to determine the earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock have no obligation to fund losses.

The following table sets forth the computation of basic and diluted net (loss) earnings per share to common stockholders:


	Three Months Ended March 31,
(in thousands, except share and per share data)	2024			2023
Basic net (loss) earnings per common share calculation:
Net (loss) income attributable to common stockholders	$	(11,506	)	$	4,758
Undistributed earnings to preferred stock stockholders		—			(4,176	)
Net (loss) income attributable to common stockholders – basic	$	(11,506	)	$	582
Weighted-average shares of common stock outstanding – basic		59,374,019			6,481,862
Net (loss) earnings per share of common stock – basic	$	(0.19	)	$	0.09

Diluted net (loss) earnings per common share calculation:
Net (loss) income attributable to common stockholders – basic	$	(11,506	)	$	582
Net (loss) income attributable to common stockholders – diluted	$	(11,506	)	$	582
Weighted-average shares of common stock outstanding – basic		59,374,019			6,481,862
Outstanding options and restricted stock units		—			3,157,720
Legacy Tigo warrants and common stock warrants		—			1,365,554
Weighted-average shares of common stock – diluted		59,374,019			11,005,136
Net (loss) earnings per share of common stock – diluted	$	(0.19	)	$	0.05

The Company excluded the effect of the below elements from our calculation of diluted (loss) earnings per share, as their inclusion would have been anti-dilutive. These amounts represent the number of instruments outstanding at the end of the period.


	As of March 31,
	2024		2023
Common stock warrants		—		177,076
Outstanding stock options and restricted stock units		1,694,503		318,969
Convertible promissory note		5,305,437		5,454,548
		6,999,940		5,950,593