Net (Loss) Earnings Per Share

9 Months Ended

Sep. 30, 2024

Basic net (loss) earnings per share of common stock is computed by dividing net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period, without consideration for potential dilutive shares of common stock. Diluted net (loss) earnings per share of common stock is computed by dividing the net (loss) earnings attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method and if-converted method, as applicable. Basic and diluted net (loss) earnings per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities.

Under the two-class method, net (loss) income for the three and nine months ended September 30, 2023, is adjusted by the difference between the fair value of consideration transferred and the carrying amount of convertible preferred stock during periods where the Company redeems its convertible preferred stock. The remaining earnings (undistributed earnings) are allocated to common stock and each series of convertible preferred stock to the extent that each preferred security may share in earnings as if all of the earnings for the period had been distributed. The total earnings allocated to common stock are then divided by the number of outstanding shares to which the earnings are allocated to determine the earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the convertible preferred stock have no obligation to fund losses. In periods in which the Company

reports a net loss, diluted net loss per share is the same as basic net loss per share since dilutive shares are not assumed to have been issued if their effect is antidilutive. As a result, for the periods in which the Company experienced a net loss, the weighted-average shares used to calculate both basic and diluted net loss per share are the same.

The following table sets forth the computation of basic and diluted net loss per share to common stockholders:


	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except share and per share data)	2024			2023			2024			2023
Basic net (loss) earnings per common share calculation:
Net (loss) income attributable to common stockholders	$	(13,117	)	$	29,056		$	(35,944	)	$	10,391
Undistributed earnings to preferred stock stockholders		—			—			—			(4,574	)
Net (loss) income attributable to common stockholders – basic	$	(13,117	)	$	29,056		$	(35,944	)	$	5,817
Weighted-average shares of common stock outstanding – basic		60,608,934			58,408,441			60,130,249			31,070,476
Net (loss) earnings per share of common stock – basic	$	(0.22	)	$	0.50		$	(0.60	)	$	0.19

Diluted net (loss) earnings per common share calculation:
Net (loss) income attributable to common stockholders	$	(13,117	)	$	29,056		$	(35,944	)	$	10,391
Reverse: interest expense and change in fair value on derivative liability		—			(47,623	)		—			(7,196	)
Net (loss) income attributable to common stockholders - diluted		(13,117	)		(18,567	)		(35,944	)		3,195
Undistributed earnings to preferred stock stockholders		—			—			—			(1,406	)
Net (loss) income attributable to common stockholders – diluted		(13,117	)		(18,567	)		(35,944	)		1,789
Weighted-average shares of common stock outstanding – basic		60,608,934			58,408,441			60,130,249			31,070,476
Outstanding options and restricted stock units		—			3,727,831			—			3,472,940
Legacy Tigo warrants and common stock warrants		—			927,049			—			813,569
Convertible promissory note		—			5,305,437			—			5,130,532
Weighted-average shares of common stock – diluted		60,608,934			68,368,758			60,130,249			40,487,517
Net (loss) earnings per share of common stock – diluted	$	(0.22	)	$	(0.27	)	$	(0.60	)	$	0.04

The Company excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive. These amounts represent the number of instruments outstanding at the end of the period.


	As of September 30,
	2024		2023
Outstanding stock options and restricted stock units		5,329,471		—
Convertible promissory note		5,305,861		—
		10,635,332		—