NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the basic weighted-average number of shares of common stock outstanding during each period. Diluted net income per share is calculated by dividing net income available to common stockholders by the basic weighted average number of shares of common stock outstanding plus common stock equivalents during each period. All potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive.

Prior to the completion of the Company's IPO discussed in Note 1- Nature of Business and Basis of Presentation, the Company had outstanding convertible preferred stock that were entitled to cumulative dividends that are payable upon redemption of the underlying shares. Historically, the Company reduced income available to common stockholders by cumulative preferred dividends in determining basic and diluted earnings per share.

In connection with the closing of the IPO in May 2026, all outstanding shares of preferred stock were converted into common stock pursuant to the terms of the Company's certificate of incorporation. Concurrent with such conversion, accumulated undeclared cumulative dividend rights of approximately $10.9 million were extinguished and no longer represented an obligation of the Company. Accordingly, such amounts are no longer deducted from net income in determining income available to common stockholders and the cumulative amount has been adjusted in the current period calculation.

For the six months ended June 30, 2026, the net adjustment to income available to common stockholders was $10.4 million, as the $10.9 million extinguishment of accumulated cumulative dividend rights was partially offset by $0.6 million of cumulative preferred dividends attributable to the three months ended March 31, 2026.

The following table provides a reconciliation of the numerators and denominators used to calculate basic and diluted net income (loss) per common share as disclosed on our unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2026 and 2025, respectively:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Basic net income (loss) per share:
Numerator:
Net income (loss)	$	(15,278)	$	1,611	$	(24,267)	$	20
Preferred stock dividends	10,925		(554)		10,376		(1,103)
Income allocated to participating securities	—		(945)		—		—
Net income (loss) attributable to common stockholders, basic	$	(4,353)	$	112	$	(13,891)	$	(1,083)
Denominator:
Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders, basic	61,924,756		7,392,011		35,290,038		7,312,496
Net income (loss) per share attributable to common stockholders, basic	$	(0.07)	$	0.02	$	(0.39)	$	(0.15)

Diluted net income (loss) per share:
Numerator:
Net income (loss) attributable to common stockholders, basic	$	(4,353)	$	112	$	(13,891)	$	(1,083)
Preferred stock dividends	—		—		—		—
Income allocated to participating securities	—		61		—		—
Net income (loss) attributable to common stockholders, diluted	$	(4,353)	$	173	$	(13,891)	$	(1,083)
Denominator:
Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders, basic	61,924,756		7,392,011		35,290,038		7,312,496
Weighted-average effect of potentially dilutive securities:
Stock Options	—		4,404,802		—		—
RSUs	—		—		—		—
Warrants for Common Stock	—		428,797		—		—
Convertible Preferred Stock	—		—		—		—
Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders, diluted	61,924,756		12,225,610		35,290,038		7,312,496
Net income (loss) per share attributable to common stockholders, diluted	$	(0.07)	$	0.01	$	(0.39)	$	(0.15)

Dilutive shares which could exist pursuant to the exercise of outstanding stock instruments, and which were not included in the calculation because their effect would have been anti-dilutive are as follows:


	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
Stock Options	14,336,269	1,718,363	14,336,269	12,419,812
RSUs	1,481,907	—	1,481,907	—
Warrants for Common Stock	327,858	952,360	327,858	1,538,864
Convertible Preferred Stock	—	—	—	62,425,315
Total	16,146,034	2,670,723	16,146,034	76,383,991