| Net Income (Loss) Per Share |
13. Net Income (Loss) Per Share
The Company computes net income (loss) per share
using the two-class method. The two-class method uses an earnings allocation formula that determines net income (loss) per share for
common stock and any participating securities according to dividends declared and participation rights in undistributed earnings.
Diluted net income (loss) per share includes
the potential dilutive effect of common stock equivalents as if such securities were converted or exercised during the period, when the
effect is dilutive. Common stock equivalents include: (i) outstanding stock options and restricted stock units; (ii) common stock to
be issued upon the assumed exercise of the Company’s common stock warrants; (iii) convertible preferred stock; and (iv) prior to
issuance, the issuable warrants related to the Company’s March 2023 private placement financing.
The following table sets forth the computation
of basic and diluted net loss per share of common and preferred stock (in thousands, except share and per share data):
| |
|
Three Months Ended
March 31, |
|
| |
|
2025 |
|
|
2026 |
|
| Basic net (loss) income per share |
|
|
|
|
|
|
| Numerator: |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
570 |
|
|
$ |
(12,824 |
) |
| Less: Dividend to Series B preferred stockholders |
|
|
- |
|
|
|
- |
|
| Net income attributable to participating securities |
|
|
(60 |
) |
|
|
- |
|
| Net income (loss) attributable to common stockholders, basic |
|
|
510 |
|
|
|
(12,824 |
) |
| |
|
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, basic |
|
|
11,681,881 |
|
|
|
23,908,153 |
|
| Net income (loss) per share attributable to common stockholders, basic |
|
$ |
0.04 |
|
|
$ |
(0.54 |
) |
| |
|
Three Months Ended
March 31, |
|
| |
|
2025 |
|
|
2026 |
|
| Diluted net loss per share |
|
|
|
|
|
|
| Numerator: |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
570 |
|
|
$ |
(12,824 |
) |
| Net income attributable to participating securities |
|
|
(60 |
) |
|
|
- |
|
| Change in fair value of preferred stock warrant liability |
|
|
(6,724 |
) |
|
|
- |
|
| Net loss attributable to common stockholders, diluted |
|
|
(6,214 |
) |
|
|
(12,824 |
) |
| |
|
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding used in computing net
loss per share attributable to common stockholders, diluted |
|
|
12,383,477 |
|
|
|
23,908,153 |
|
| Net loss per share attributable to common stockholders, diluted |
|
$ |
(0.50 |
) |
|
$ |
(0.54 |
) |
The following outstanding shares of potentially
dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them
would have been antidilutive:
| |
|
Three Months Ended
March 31, |
|
|
Three Months Ended
March 31 |
|
| |
|
2025 |
|
|
2026 |
|
| |
|
|
|
|
|
|
| Options to purchase common stock |
|
|
1,364,579 |
|
|
|
2,033,114 |
|
| Warrants to purchase common stock |
|
|
478,419 |
|
|
|
478,419 |
|
| Restricted stock units |
|
|
2,177 |
|
|
|
3,677 |
|
| Common stock issuable upon conversion of Series B-2 convertible preferred stock |
|
|
300,000 |
|
|
|
- |
|
| Common stock issuable upon conversion of Series A-2 Prime convertible preferred stock |
|
|
1,115,145 |
|
|
|
462,245 |
|
| Warrants to purchase convertible preferred stock |
|
|
6,960,353 |
|
|
|
15,818,817 |
|
| Total |
|
|
10,220,673 |
|
|
|
18,796,272 |
|
|