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Net Loss Per Share
9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share

7. Net Loss Per Share

Basic net loss per common share is calculated using the two-class method by dividing the net loss allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted net loss per common share is calculated by adjusting net loss to remove the effects from potential dilutive common shares and dividing this adjusted amount by the weighted average number of common shares and potential dilutive common shares outstanding for the period. Potential dilutive common shares are not included if their effect is anti-dilutive.

As discussed further in Note 10, “Long-Term Obligations”, we have the option to settle the conversion obligation for our 3.00% convertible senior notes due 2025 (the “2025 Notes”) in cash, shares or any combination of the two. There was no impact of the 2025 Notes on the calculation of dilutive loss per common share during the three months ended September 30, 2024 and the three and nine months ended September 30, 2023 because they were anti-dilutive in these periods.

As discussed further in Note 10, “Long-Term Obligations”, we have the option to settle the conversion obligation for our 2029 Notes in cash, shares or any combination of the two. There was no impact of the 2029 Notes on the calculation of dilutive loss per common share during the three and nine months ended September 30, 2024 because they were anti-dilutive in these periods.

As discussed further in Note 11, “Common Share Warrants”, warrants to purchase up to 55,563,775 shares of our common stock were outstanding as of September 30, 2024. These warrants are not included in the calculation of basic net loss per share because the warrant holders do not have an obligation to share in our losses. There was no impact of these warrants on the calculation of dilutive loss per common share during the three and nine months ended September 30, 2024 and 2023 because they were anti-dilutive in these periods.

The following is a reconciliation of the numerator and denominator used to calculate diluted net loss per common share for the nine months ended September 30, 2024 (in thousands except per share amounts):

 

 

 

For the Nine Months Ended September 30, 2024

 

 

Net loss

 

$

(45,642

)

 

Add back interest expense on the 2025 Notes

 

 

2,518

 

 

Add back gain on extinguishment of debt

 

 

(44,702

)

 

Numerator for diluted net loss per common share (A)

 

$

(87,826

)

 

Weighted-average number of common shares outstanding

 

 

120,513

 

 

Dilutive effect of 2025 Notes calculated using the if-converted method

 

 

6,093

 

 

Denominator for diluted net loss per common share (B)

 

 

126,606

 

 

Diluted net loss per common share (= A / B)

 

$

(0.69

)

 

 

The following potentially dilutive securities were excluded from the calculation of diluted net loss per common share due to their anti-dilutive effect under the treasury method (in thousands):

 

 

 

As of September 30,

 

 

 

2024

 

 

2023

 

Outstanding common share warrants

 

 

55,563,775

 

 

 

9,787,563

 

Outstanding stock options

 

 

6,346

 

 

 

9,775

 

Unvested restricted stock units

 

 

12,914

 

 

 

7,818