Net Income (Loss) Per Common Share
The following table summarizes the computation of basic and diluted net income (loss) per common share.
| | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net loss | $ | (34,004) | | | $ | (38,273) | | | $ | (50,150) | |
| Adjustment for preferred stock cumulative dividends and deemed dividends | (18,912) | | | (15,698) | | | (13,098) | |
| Numerator for basic and diluted net loss per common share | $ | (52,916) | | | $ | (53,971) | | | $ | (63,248) | |
| | | | | |
| Denominator: | | | | | |
| Weighted average common shares outstanding | 50,216 | | | 49,596 | | | 46,174 | |
| Adjustment for participating securities | (2,237) | | | (2,724) | | | (2,636) | |
| Adjustment for warrants outstanding (1) | 1,458 | | | 1,781 | | | 3,200 | |
| Shares used to calculate basic and diluted net loss per share | 49,437 | | | 48,653 | | | 46,738 | |
| | | | | |
| Basic and diluted net loss per common share | $ | (1.07) | | | $ | (1.11) | | | $ | (1.35) | |
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(1) Outstanding warrants that are exercisable at an exercise price of $0.01 per share, are included in shares outstanding for calculation of basic earnings per share (see Note 17).
The following table presents potentially dilutive securities that were excluded from the calculation of diluted net income (loss) per common share because they had an anti-dilutive effect.
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | 115 | | | 212 | | | 381 | |
| Warrants | 1,500 | | | 1,500 | | | 1,500 | |
| Performance share units | 820 | | | 802 | | | 133 | |
| Total antidilutive securities | 2,435 | | | 2,514 | | | 2,014 | |
Stock options excluded from the EPS calculations had a per share exercise price ranging from $7.93 to $25.16 for the year ended December 31, 2025. The 2019 Warrants (as defined below) excluded from the EPS calculations for the year ended December 31, 2025 had a per share exercise price of $11.03 (see Note 17). Performance share units are potentially dilutive when the related performance criterion has been met.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.