v3.25.2
Note 10 - Net Loss Per Share
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 10. Net Loss per Share

 

The Company’s Series A Convertible Preferred Stock, of which no shares were outstanding as of June 30, 2025, Series X Convertible Preferred Stock, Series B Convertible Preferred Stock, and outstanding warrants to purchase common stock have participation rights to any dividends that may be declared in the future, such that they are participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to the participating securities since the holders have no contractual obligation to share in the losses of the Company. All common share and per-share amounts for all periods presented reflect the Company’s 1-for-10 reverse stock split effective on July 15, 2024.

 

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at June 30, 2025, consisted of 1,265,601 shares of common stock issuable upon conversion of Series X Convertible Preferred Stock, 6,369,063 shares of common stock issuable upon conversion of Series B convertible Preferred Stock, 20,502,073 shares of common stock issuable upon exercise of outstanding warrants and 2,415,435 shares of common stock issuable upon exercise of vested stock options. The weighted-average number of common shares outstanding includes 278,643 shares of common stock sold under the ATM Agreement on June 30, 2025 but issued on July 1, 2025. Since these shares of common stock are issuable for no consideration and do not contain any other conditions that must be satisfied by the holder to ultimately receive such shares of common stock, these shares were included in the weighted-average number of common shares as of June 30, 2025.

 

Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share at June 30, 2024, consisted of 231,412 shares of common stock issuable upon conversion of Series A Convertible Preferred Stock, 1,265,601 shares common stock issuable upon conversion of Series X Convertible Preferred Stock, 1,104,218 shares of common stock issuable upon exercise of outstanding warrants, and 91,456 shares of common stock issuable upon exercise of vested stock options.