Basic net loss per common share is calculated using the two-class method by dividing the net 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 2029 Notes did not impact dilutive loss per common share during the three and nine months ended September 30, 2025 and 2024 because they were anti-dilutive in these periods. The 2025 Notes did not impact dilutive loss per common share during the three and nine months ended September 30, 2025 and for the three months ended September 30, 2024 because they were anti-dilutive in these periods. See the table below for the impact of the 2025 Notes on dilutive loss per common share during the nine months ended September 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 September 30, 2025. These warrants are not included in the calculation of basic net loss per share 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 nine months ended September 30, 2025 and 2024 because they were anti-dilutive in these periods.

The following is a reconciliation of the numerator and denominator used to calculate basic and diluted net loss per common share for the nine months ended September 30, 2024 (in thousands except per share amounts):


	For the Nine Months Ended September 30, 2024
Net loss	$	(45,642	)
Add back interest expense on the 2025 Notes		2,518
Add back gain on extinguishment of debt		(44,702	)
Numerator for diluted net loss per common share (A)	$	(87,826	)
Weighted-average number of common shares outstanding		8,036
Dilutive effect of 2025 Notes calculated using the if-converted method		406
Denominator for diluted net loss per common share (B)		8,442
Diluted net loss per common share (= A / B)	$	(10.40	)

In addition to the financial instruments discussed above, the following other potentially dilutive securities were excluded from the calculation of diluted net loss per common share due to their anti-dilutive effect under the treasury method (in thousands):


	As of September 30,
	2025		2024
Outstanding stock options		492		423
Unvested restricted stock units		688		861