NET LOSS PER COMMON SHARE
Basic and diluted net income (loss) per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period. In accordance with ASC 260, Earnings per Share, if a company had a discontinued operation, the company uses income from continuing operations, adjusted for preferred dividend and similar adjustments, as its control number to determine whether potential common shares are dilutive.
As discussed in Note 15, as part of its February 2023 underwritten public offering, the Company issued and sold pre-funded warrants to purchase 1.25 million shares of its common stock at a price to the public of $20.9999 per pre-funded warrant. The pre-funded warrants were immediately exercisable upon issuance, and were exercised in the third quarter of 2024, resulting in the issuance of 1.25 million shares of the Company's common stock. Due to the nominal exercise price of the pre-funded warrants and the lack of any contingencies to exercise, the shares underlying the pre-funded warrants have been included in the calculation of basic net loss per common share since the date the warrants were issued.
The Company’s potentially dilutive shares, which include outstanding stock options, restricted stock units, performance-based stock units, and shares issuable upon conversion of the 2025 Notes and 2029 Notes, are considered to be common stock equivalents and are not included in the calculation of diluted net loss per share because their effect is anti-dilutive.
Basic and diluted net loss per share is calculated as follows (net loss amounts are stated in thousands):
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| For the year ended December 31, |
| 2025 | | 2024 | | 2023 |
| Shares | | Net (loss) income | | EPS | | Shares | | Net loss | | EPS | | Shares | | Net (loss) income | | EPS |
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| Continuing operations | 89,211,813 | | | $ | (50,261) | | | $ | (0.57) | | | 78,888,861 | | | $ | (320,630) | | | $ | (4.07) | | | 74,267,418 | | | $ | (376,333) | | | $ | (5.07) | |
| Discontinued operations | 89,211,813 | | | 24,715 | | | 0.28 | | | 78,888,861 | | | (915) | | | (0.01) | | | 74,267,418 | | | 264,934 | | | 3.57 | |
| Basic and diluted loss per share | 89,211,813 | | | $ | (25,546) | | | $ | (0.29) | | | 78,888,861 | | | $ | (321,545) | | | $ | (4.08) | | | 74,267,418 | | | $ | (111,399) | | | $ | (1.50) | |
For the years ended December 31, 2025, 2024 and 2023, the following weighted-average number of common stock equivalents were excluded because they were anti-dilutive:
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| For the year ended December 31, |
| 2025 | | 2024 | | 2023 |
| Convertible debt | 11,172,474 | | | 11,697,953 | | | 11,697,952 | |
| Options | 9,665,404 | | | 10,447,541 | | | 10,555,550 | |
| Restricted stock units and performance-based stock units | 4,437,355 | | | 3,780,441 | | | 3,417,245 | |
| Total anti-dilutive shares | 25,275,233 | | | 25,925,935 | | | 25,670,747 | |