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NET (LOSS) INCOME PER SHARE
3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
NET (LOSS) INCOME PER SHARE 12.        NET (LOSS) INCOME PER SHARE
Basic earnings per share (“EPS”) is measured as the income or loss available to common stockholders divided by the weighted
average common shares outstanding for the period. Upon exercise of the Tranche 2 Warrants, shares are issuable for little or no
consideration, sometimes referred to as “penny warrants”. Under ASC 260-10-45-13, those issuable shares are considered outstanding
in the computation of basic EPS whether or not related warrants have been exercised. At March 31, 2026, approximately 7.8 million
shares of common stock remain issuable upon the exercise of the Tranche 2 Warrants and are included in the number of outstanding
shares used for the computation of basic EPS for the three months then ended. Additionally, the basic EPS numerator includes an
adjustment to eliminate the changes in fair value that have been recognized in net (loss) income.
Diluted EPS includes and presents the dilutive effect on EPS from the potential issuance of shares from unvested restricted
stock units, conversion of convertible securities, or the exercise of options and/or warrants. The potentially dilutive effect of
convertible securities is calculated using the if-converted method. The potentially dilutive effect of options or warrants are computed
using the treasury stock method. When potentially dilutive securities have an anti-dilutive effect (i.e., increase income per share or
decrease loss per share), they are excluded from the diluted EPS calculation.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss)
income per share (in thousands, except per share amounts):
Three Months Ended March 31,
2026
2025
Numerator:
Net (loss) income
$(347,188)
$576,251
Add: Change in fair value of Tranche 2 Warrants
4,750
(127,372)
Basic and diluted net (loss) income
$(342,438)
$448,879
Denominator:
Weighted average shares outstanding - basic
322,911
315,186
Effect of dilutive securities:
Tranche 1 Warrants
39,232
RSUs, PSUs, and MSUs
8,896
Weighted average shares outstanding - diluted
322,911
363,314
Net (loss) income per share - basic
$(1.06)
$1.42
Net (loss) income per share - diluted
$(1.06)
$1.24
Potentially dilutive securities include securities excluded from the calculation of diluted EPS because to do so would be anti-
dilutive. Shares which may be issued from potentially dilutive securities are as follows (in thousands):
Three Months Ended March 31,
 
2026
2025
Convertible Notes
69,611
69,611
RSUs, PSUs, and MSUs
15,334
1,249
Stock options
344
321
Tranche 1 Warrants
96,654
Total shares issuable from potentially dilutive securities
181,943
71,181