Net income is allocated between the Company’s common stock and other participating securities (excluding unvested restricted stock awards) based on their participation rights. The Company has determined that its Series A Preferred Stock represent participating securities and are a class of common stock. As such, the Company uses the two-class method of computing earnings per share. Under this method, net income (or loss) is allocated between the holders of common stock and the holder of the Series A Preferred Stock based on their respective participation rights.

Given that holders of Series A Preferred Stock participate in net losses on a 1:1 basis with holders of common stock, the allocation of net losses under the two-class method is equivalent to the allocation of net losses that would result under the if-converted method. Consequently, there is no difference between basic and diluted net loss per share of common stock, which also excludes all potential common stock equivalents as their impact on diluted net loss per share would be anti-dilutive.

The following table sets forth the computations of basic and diluted loss per share of common stock and Series A Preferred Stock using the two-class method and the if-converted method, respectively, for the year ended December 31, 2025 and the period July 30 through December 31, 2024.


	Successor
	Year Ended December 31, 2025		July 30 through December 31, 2024
Basic Shares:
Numerator:
Net loss	$	(87,116)	$	(105,452)
Accrued Series A Preferred Stock dividend	(6,757)		—
Undistributed loss allocated to Series A Preferred Stock	596		861
Net loss available to holders of Common Stock	$	(93,277)	$	(104,591)
Denominator:
Weighted average common stock outstanding – basic	156,600,421		121,454,845
Weighted average Series A Preferred Stock outstanding – basic	1,000,000		1,000,000
Basic loss per common stock	$	(0.60)	$	(0.86)
Basic income (loss) per Series A Preferred Stock	$	6.16	$	(0.86)

Dilutive Shares:
Numerator:
Undistributed loss allocated to common stock	$	(93,277)	$	(104,591)
Accrued Series A Preferred Stock dividend (anti-dilutive)	—		—
Undistributed loss allocated to Series A Preferred Stock	(596)		(861)
Total undistributed loss	$	(93,873)	$	(105,452)
Denominator:
Weighted average Common Stock outstanding – basic	156,600,421		121,454,845
Add: dilutive securities
Share Options	—		—
Warrants	—		—
Restricted Stock Units	—		—
Series A Preferred Stock	1,000,000		1,000,000
Weighted average common stock outstanding – diluted	157,600,421		122,454,845
Weighted average Series A Preferred Stock outstanding – diluted	1,000,000		1,000,000
Diluted loss per common stock	$	(0.60)	$	(0.86)
Diluted income (loss) per Series A Preferred Stock	$	6.16	$	(0.86)

For the year ended December 31, 2025, the accrued Series A Preferred Stock dividend was excluded from the numerator of diluted earnings per share as the impact would have been anti-dilutive. For the year ended December 31, 2025 and the period July 30 through December 31, 2024, the Company excluded the following potentially dilutive shares from the computation of diluted loss per common stock as the impact would have been anti-dilutive:


	Predecessor
	January 1 through July 29, 2024		Year Ended December 31, 2023
Basic and dilutive shares:
Numerator:
Net loss	$	(15,703)	$	(6,289)
Net loss available to holders of common stock	$	(15,703)	$	(6,289)

Denominator:
Weighted average common stock outstanding – basic	5,024,802		5,024,802
Dilutive shares from stock options	—		—
Weighted average common stock outstanding – diluted	5,024,802		5,024,802
Basic loss per common stock	$	(3.13)	$	(1.25)
Diluted loss per common stock	$	(3.13)	$	(1.25)

Additionally, the Company had outstanding stock options that were eligible to vest on achievement of certain market thresholds upon a change of control. For the Predecessor period ended July 29, 2024 and the year ended December 31, 2023, the contingently issuable potential shares were excluded from the computation of basic and diluted earnings per share as the contingency was not met as of the end of the reporting periods. These excluded shares were as follows: