Net Income (Loss) Per Share of Common Stock

9 Months Ended

Sep. 30, 2024

NOTE 4 — NET INCOME (LOSS) PER SHARE OF COMMON STOCK

Basic income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Diluted income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options, but only to the extent that their inclusion is dilutive. Performance-based restricted stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been achieved on the basis of the assumption that the end of the reporting period was the end of the contingency period, if such shares issuable are dilutive.

In June 2023, in connection with the Private Placement (as defined and described in Note 6, Stockholders’ Deficit), the Company issued and sold pre-funded warrants exercisable for an aggregate of 575,575 shares of common stock. The purchase price of the pre-funded warrants was $9.99 per share, which was paid to the Company upon issuance of the pre-funded warrants. The exercise price of the pre-funded warrants is $0.01 per share. The pre-funded warrants are exercisable by the holders at any time and do not expire. As the remaining shares underlying the pre-funded warrants are issuable for nominal consideration of $0.01 per share, 575,575 shares of common stock underlying the unexercised pre-funded warrants were considered outstanding for purposes of the calculation of income (loss) per share as of September 30, 2024.

The following table sets forth the computation of basic and diluted income (loss) per share for common stockholders:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2024		2023			2024		2023
Net income (loss)	$	22,513,205	$	(7,820,446	)	$	5,710,913	$	(20,982,894	)

Weighted average shares of common stock outstanding - basic		7,568,981		7,568,981			7,568,981		6,148,276
Dilutive effect		—		—			9,286		—
Weighted average shares of common stock outstanding - diluted		7,568,981		7,568,981			7,578,267		6,148,276

Net income (loss) per ordinary share:
Basic	$	2.97	$	(1.03	)	$	0.75	$	(3.41	)
Diluted	$	2.97	$	(1.03	)	$	0.75	$	(3.41	)

The following securities outstanding at September 30, 2024 and 2023 have been excluded from the calculation of weighted average shares outstanding as their effect on the calculation of income (loss) per share is antidilutive:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Common stock options		1,060,109		735,929		1,010,377		735,929
Performance-based restricted stock units		228,209		228,209		228,209		228,209
Common stock warrants		5,099		5,099		5,099		5,099