Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common stock and pre-funded warrants outstanding for the period. Shares of common stock into which the pre-funded warrants may be exercised are considered outstanding for the purposes of computing earnings (loss) per share because the shares may be issued for little or no consideration, are fully vested, and are exercisable after the original issuance date.

Diluted earnings per share is computed using the weighted-average number of common stock and pre-funded warrants, and the potentially dilutive securities outstanding for the periods. Potentially dilutive securities consist of stock options and restricted stock units. The dilutive effect of outstanding stock options and restricted stock units is reflected in the diluted earnings per share by application of the treasury stock method. For periods in which the Company generated a net loss, the Company does not include the potential impact of dilutive securities in diluted loss per share, as the impact of these items is anti-dilutive.

The following table provides the denominators used in computing basic and diluted net earnings (loss) per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Weighted average common shares outstanding, basic		61,462,957		60,434,161		61,313,689		60,274,285
Effect of dilutive shares:
Stock options, issued and outstanding		33,172		—		109,305		—
Unreleased restricted stock units		255,154		—		393,105		—
Weighted average common shares outstanding, diluted		61,751,283		60,434,161		61,816,099		60,274,285

The following equity instruments were excluded from the calculation of diluted earnings (loss) per share because their effect would have been anti-dilutive for the periods presented:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Stock options, issued and outstanding		4,770,706		7,525,626		4,477,026		7,525,626
Estimated shares issuable under the employee stock purchase plan		—		86,292		—		86,292
Unreleased restricted stock units		973,458		1,707,599		1,323,200		1,707,599
Total		5,744,164		9,319,517		5,800,226		9,319,517

Note 11. Earnings (Loss) Per Share Attributable to Common Stockholders