Net Loss per Share

9 Months Ended

Sep. 30, 2024

Note 8. Net loss per share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period. Shares of common stock that are potentially issuable for little or no cash consideration at issuance, such as the Company's pre-funded warrants issued in March 2022 and October 2023 and in connection with the exercise of certain May 2023 Tranche A and Tranche B warrants, are considered outstanding common stock and are included in the calculation of basic and diluted net loss per share in connection with ASC 260 Earnings Per Shares. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding and dilutive potential common stock that would be issued upon the exercise or vesting of common stock awards and exercise of common stock warrants that are not pre-funded. The Company applies the two-class method to calculate basic and diluted earnings per share as its warrants issued in March 2022, May 2023 and October 2023 are participating securities. However, the two-class method does not impact the net loss per share of common stock as the March 2022, May 2023 and October 2023 common warrants issued do not participate in losses. For the three and nine months ended September 30, 2024 and 2023, the effect of issuing potential common stock is anti-dilutive due to the net losses in those periods and therefore the number of shares used to compute basic and diluted net loss per share are the same in each of those periods.

The following securities are the weighted-average common shares outstanding used to calculate basic and diluted net loss per common share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Common stock		39,360,966		10,287,620		35,824,742		9,206,650
March 2022 pre-funded warrants		-		1,122,819		-		1,227,670
May 2023 Tranche A pre-funded warrants		1,816,427		26,309		2,154,299		8,866
May 2023 Tranche B pre-funded warrants		451,632		-		451,632		-
October 2023 pre-funded warrants		250,000		-		486,496		-
Total		41,879,025		11,436,748		38,917,169		10,443,186

The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding for the periods presented because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares):


	As of September 30,
	2024		2023
Warrants issued to 2010/2012 convertible note holders to purchase common stock		6,804		6,804
Warrants issued to underwriter to purchase common stock		1,100		1,100
2018 PIPE warrants		-		34,241
March 2022 common warrants		1,273,077		2,130,656
May 2023 Tranche A warrants		-		2,867,908
May 2023 Tranche B warrants		4,935,305		14,000,000
Options to purchase common stock		3,523,251		2,300,412
Outstanding restricted stock units		1,072,530		424,244
Total		10,812,067		21,765,365