| Net Income (Loss) Per Share |
14. 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 private placement financing.
The following table sets forth the computation
of basic and diluted net income (loss) per share of common and preferred stock (in thousands, except share and per share data):
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| Basic net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(3,838 |
) |
|
$ |
9,855 |
|
|
$ |
(18,413 |
) |
|
$ |
(11,108 |
) |
| Net income (loss) attributable to participating securities |
|
|
- |
|
|
|
(5,925 |
) |
|
|
- |
|
|
|
- |
|
| Deemed dividends on preferred stock |
|
|
(603 |
) |
|
|
(887 |
) |
|
|
(795 |
) |
|
|
(1,095 |
) |
| Net income (loss) attributable to common shares, basic |
|
|
(4,441 |
) |
|
|
3,043 |
|
|
|
(19,208 |
) |
|
|
(12,203 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, basic |
|
|
15,234,570 |
|
|
|
37,914,812 |
|
|
|
15,233,503 |
|
|
|
36,397,997 |
|
| Net income (loss) per share attributable to common stockholders, basic |
|
$ |
(0.29 |
) |
|
$ |
0.08 |
|
|
$ |
(1.26 |
) |
|
$ |
(0.34 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to common shares, basic |
|
$ |
(4,441 |
) |
|
$ |
3,043 |
|
|
$ |
(19,208 |
) |
|
$ |
(12,203 |
) |
| Change in fair value of preferred stock warrant liability |
|
|
- |
|
|
|
(16,810 |
) |
|
|
- |
|
|
|
- |
|
| Net (loss) attributable to common shares, diluted |
|
|
(4,441 |
) |
|
|
(13,767 |
) |
|
|
(19,208 |
) |
|
|
(12,203 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic |
|
|
15,234,570 |
|
|
|
37,914,812 |
|
|
|
15,233,503 |
|
|
|
36,397,997 |
|
| Weighted-average effect of diluted securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tranche warrants to purchase convertible preferred stock |
|
|
- |
|
|
|
56,138,041 |
|
|
|
- |
|
|
|
- |
|
| Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, diluted |
|
|
15,234,570 |
|
|
|
94,052,853 |
|
|
|
15,233,503 |
|
|
|
36,397,997 |
|
| Net loss per share attributable to common stockholders, diluted |
|
$ |
(0.29 |
) |
|
$ |
(0.15 |
) |
|
$ |
(1.26 |
) |
|
$ |
(0.34 |
) |
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
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Options to purchase common stock |
|
|
1,334,309 |
|
|
|
13,088,427 |
|
|
|
1,334,309 |
|
|
|
13,088,427 |
|
| Warrants to purchase common stock |
|
|
4,784,193 |
|
|
|
4,784,193 |
|
|
|
4,784,193 |
|
|
|
4,784,193 |
|
| Restricted stock units |
|
|
- |
|
|
|
10,000 |
|
|
|
- |
|
|
|
10,000 |
|
| Common stock issuable upon conversion of Series B-1 convertible preferred stock |
|
|
- |
|
|
|
50,000,000 |
|
|
|
- |
|
|
|
50,000,000 |
|
| Common stock issuable upon conversion of Series A-2 Prime convertible preferred stock |
|
|
- |
|
|
|
34,843,000 |
|
|
|
- |
|
|
|
34,843,000 |
|
| Warrants to purchase convertible preferred stock |
|
|
160,958,167 |
|
|
|
- |
|
|
|
160,958,167 |
|
|
|
160,958,167 |
|
| Total |
|
|
167,076,669 |
|
|
|
102,725,620 |
|
|
|
167,076,669 |
|
|
|
263,683,787 |
|
|