Note 20. Net Loss per Share Applicable to Common Shareholders, Basic and Diluted

The Company calculates basic and diluted net loss per share attributable to common shareholders using the two-class method required for companies with participating securities. The Company considers preferred stock to be participating securities as the holders are entitled to receive dividends on a pari passu basis in the event that a dividend is paid on common shares.

The following table sets forth the computation of net loss per share applicable to common shareholders (in thousands, except share data):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Net loss

 

$

(110,556

)

 

$

(74,908

)

Weighted-average number of common shares used in net loss per share applicable to common shareholders, basic and diluted

 

 

35,101,792

 

 

 

12,910,341

 

Net loss per share applicable to common shareholders, basic and diluted

 

$

(3.15

)

 

$

(5.80

)

 

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Excluded securities:

 

 

 

 

 

 

Options to purchase common shares

 

 

2,332,762

 

 

 

2,689,131

 

Warrants to purchase common shares

 

 

11,163,825

 

 

 

4,549,958

 

Restricted stock units

 

 

2,432,187

 

 

 

745,234

 

Unvested RSPAs

 

 

13,486

 

 

 

36,907

 

Convertible notes (as converted to common shares)

 

 

19,322,698

 

 

 

9,802,974

 

Mandatory Convertible Security

 

 

 

 

 

9,887,756

 

Total common shares equivalents

 

 

35,264,958

 

 

 

27,711,960

 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 21, 2025
2023Mar 29, 2024

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.