CEL SCI CORP Earnings Per Share Disclosure
14. NET LOSS PER COMMON SHARE
Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the treasury stock method. The Company’s potentially dilutive shares, which include outstanding common stock options, common stock warrants and restricted stock are not included in the computation of diluted net loss per share if their effect would be anti-dilutive.
The calculation of basic and diluted net loss per share includes 48,332 of the pre-funded warrants that remain outstanding as of September 30, 2024.
The following table provides a reconciliation of the numerators and denominators of the basic and diluted per-share computations:
|
| Year Ended September 30, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Loss per share – basic and diluted |
|
|
|
|
|
| ||
Net loss available to common shareholders – basic and diluted |
| $ | (25,411,055 | ) |
| $ | (27,579,921 | ) |
Weighted average shares outstanding – basic and Diluted |
|
| 4,055,738 |
|
|
| 1,801,500 |
|
Basic and diluted loss per common share |
| $ | (6.27 | ) |
| $ | (15.31 | ) |
In accordance with the contingently issuable shares guidance of ASC 260, Earnings Per Share, the calculation of diluted net loss per share excludes the following dilutive securities because their inclusion would have been anti-dilutive as of September 30:
|
| 2025 |
|
| 2024 |
| ||
Options and Warrants |
|
| 744,976 |
|
|
| 578,352 |
|
Unvested Restricted Stock |
|
| 4,810 |
|
|
| 4,910 |
|
Total |
|
| 749,786 |
|
|
| 583,262 |
|
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.