Cineverse Corp. Earnings Per Share Disclosure
6. EARNINGS (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing the net income (loss) attributable to Common Stockholders, adjusted for by the deemed earnings attributable to participating common warrant holders, by the weighted average number of shares of Common Stock outstanding during the period.
Diluted net income (loss) per share is computed by dividing the net income (loss) available to Common Stockholders by the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include restricted stock units, stock options and warrants outstanding during the period and are calculated using the treasury stock method. Potentially dilutive common shares are excluded from the computations of diluted income (loss) per share if their effect would be anti-dilutive. A net loss available to Common Stockholders causes all potentially dilutive securities to be anti-dilutive and are not included.
The following table sets forth the computation of basic and diluted earnings per share and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the fiscal year ended March 31, 2025 and 2024
|
Twelve Months ended |
|
|||||
|
2025 |
|
|
2024 |
|
||
|
(in thousands, except shares and per share data) |
|
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Numerator: |
|
|
|
|
|
||
Net income (loss) attributable to common stockholders and participating common warrant holders |
$ |
3,246 |
|
|
$ |
(21,757 |
) |
Less: earnings attributable to participating common warrant holders |
|
468 |
|
|
|
— |
|
Net income (loss) attributable to common stockholders - basic and diluted |
$ |
2,778 |
|
|
$ |
(21,757 |
) |
|
|
|
|
|
|
||
Denominator: |
|
|
|
|
|
||
Weighted average shares of common stock - basic |
|
15,813,590 |
|
|
|
12,253,293 |
|
Effect of dilutive common stock equivalents |
|
2,004,838 |
|
|
|
— |
|
Weighted average shares of common stock - diluted |
|
17,818,428 |
|
|
|
12,253,293 |
|
|
|
|
|
|
|
||
Earnings per share: |
|
|
|
|
|
||
Basic earnings (loss) per share |
$ |
0.18 |
|
|
$ |
(1.78 |
) |
Effect of dilutive common stock equivalents |
|
(0.02 |
) |
|
|
— |
|
Diluted earnings (loss) per share |
$ |
0.16 |
|
|
$ |
(1.78 |
) |
The following common equivalent shares outstanding at period-end have been excluded from the computation of earnings per share, as their inclusion would have been anti-dilutive:
|
Twelve Months ended |
|
|||||
|
2025 |
|
|
2024 |
|
||
Options to purchase common stock |
|
250 |
|
|
|
892 |
|
Stock appreciation rights |
|
766,244 |
|
|
|
775,701 |
|
Warrants to purchase common stock |
|
2,654,167 |
|
|
|
2,666,667 |
|
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.