7. Net Loss Per Share

Basic net income or loss per common share is calculated using the two-class method by dividing the net income or loss allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted net loss per common share is calculated by adjusting net loss to remove the effects from potential dilutive common shares and dividing this adjusted amount by the weighted average number of common shares and potential dilutive common shares outstanding for the period. Potential dilutive common shares are not included if their effect is anti-dilutive.

As discussed further in Note 10, “Long-Term Obligations”, we have the option to settle the conversion obligation for our 2025 Notes and 2029 Notes in cash, shares or any combination of the two. The 2025 Notes and 2029 Notes did not impact dilutive loss per common share during the three and six months ended June 30, 2025 because they were anti-dilutive in these periods. See the table below for the impact on dilutive loss per common share during the three and six months ended June 30, 2024.

As discussed further in Note 11, “Common Share Warrants”, warrants to purchase up to 3.7 million shares of our common stock were outstanding as of June 30, 2025. These warrants are participating securities and were included in the calculation of basic net income per share for the three months ended June 30, 2024. These warrants are not included in the calculation of basic net loss per share during the periods in which we report net losses because the warrant holders do not have an obligation to share in our losses. These warrants did not impact dilutive loss per common share during the three and six months ended June 30, 2025 because they were anti-dilutive in these periods. See the table below for the impact on dilutive loss per common share during the three and six months ended June 30, 2024.