12. Computation of Basic and Diluted Net Loss Per Share

Basic and diluted net loss per share is based upon the weighted average number of common shares outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of RSUs and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested RSUs and awards are excluded from the computation for periods in which the Company incurs a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive. Common stock equivalents consisting of incremental common stock issuable upon conversion of convertible debt and preferred shares are calculated under the if-converted method. Common stock equivalent shares from convertible debt and preferred shares are excluded from the computation for periods in which the Company incurs a net loss or if their effect would be anti-dilutive.

For the three months ended April 4, 2026 and March 29, 2025, potential shares from stock options and RSUs totaling 2,512,284 and 2,269,639 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding.

For each of the three months ended April 4, 2026 and March 29, 2025, potential shares from the conversion of convertible debt and preferred shares totaling 5,000,000 were excluded from the computation of diluted weighted average shares outstanding, respectively.