ChronoScale Corp Earnings Per Share Disclosure
3. Net Loss Per Share of Common Stock
Basic net loss per share of common stock is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed, when applicable, using the weighted average number of shares of common stock, adjusted to include conversion of "in-the-money" stock options and warrants for common stock and release of common stock in connection with restricted stock units during the period, net of tax as follows:
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net loss applicable to common stockholders | $ | (11,695 | ) | $ | (11,330 | ) | ||
| Adjustment for deemed dividend (*) | (226 | ) | - | |||||
| Adjusted net loss used for basic and diluted calculation | $ | (11,921 | ) | $ | (11,330 | ) | ||
| Denominator: | ||||||||
| Weighted-average number of common shares, basic and diluted | 2,426 | 1,344 | ||||||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (4.91 | ) | $ | (8.43 | ) | ||
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Options to purchase common stock | 11 | 12 | ||||||
| Restricted stock units | 86 | 68 | ||||||
| B. Riley Promissory Note conversion option | 488 | — | ||||||
| Warrants for common stock | 807 | 866 | ||||||
| Total common stock equivalents | 1,392 | 947 | ||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.