BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

The Company presents both basic and diluted earnings per share on the face of the consolidated statements of operations and other comprehensive loss. Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding shares during the period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Due to their anti-dilutive effect, the calculation of diluted net loss per share for the three and six months ended June 30, 2026 and the year ended December 31, 2025, does not include the common stock equivalent shares and nonvested shares. The Company’s weighted average shares utilized for its calculation of earnings (loss) per share included the common shares outstanding and 181,822 RSUs that were fully vested on June 30, 2026 as there were no remaining contingencies for these shares to be issued as of June 30, 2026. There were no such RSUs as of June 30, 2025.

The following table includes the number of shares outstanding and potentially dilutive stock options and Restricted Stock Units ("RSU's") as of June 30, 2026, and December 31, 2025, respectively:


	June 30, 2026	December 31, 2025

Common shares outstanding	25,269,937	20,821,959
Nonvested shares outstanding	4,625,352	4,352,533
Legally outstanding shares	29,895,289	25,174,492
Stock options and RSUs outstanding (1)(2)	2,123,025	1,693,734
Total fully diluted shares	32,018,314	26,868,226

(1) The holders of Restricted Stock Units and Stock Options are not entitled to dividends or to vote

(2) Includes 181,822 RSUs that were fully vested on June 30, 2026 as there were no remaining contingencies for these shares to be issued

The following table includes the weighted average shares outstanding and potentially dilutive stock options and RSUs for the three and six months ended June 30, 2026 and 2025, respectively:


	Three months ended		Six months ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Common shares, weighted average	24,951,184	17,183,129	24,130,718	17,044,164
Nonvested shares, weighted average	4,482,734	7,404,992	4,396,374	7,240,670
Legally outstanding shares, weighted average	29,433,918	24,588,121	28,527,092	24,284,834
Stock options and RSUs outstanding, weighted average	1,802,829	1,584,707	1,743,974	1,553,948
Total securities on a fully diluted basis, weighted average	31,236,747	26,172,828	30,271,066	25,838,782

The following table shows the computation of basic and diluted loss per share for the three and six months ended June 30, 2026 and 2025, respectively:


	Three months ended				Six months ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Numerator
Net loss	$	(3,734)	$	(5,730)	$	(15,230)	$	(16,346)
Less unvested common stock dividends under the two - class method	(1,082)		(1,748)		(1,082)		(1,748)
Net loss attributable to common shareholders	(4,816)		(7,478)		(16,312)		(18,094)

Denominator
Weighted average basic and diluted shares outstanding	24,951,184		17,183,129		24,130,718		17,044,164
Basic and diluted loss per share	$	(0.19)	$	(0.44)	$	(0.68)	$	(1.06)