FTC Solar, Inc. Earnings Per Share Disclosure
Note 19. Net loss per share
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|
Year ended December 31, |
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|
|
2024 |
|
|
2023 |
|
||
Net loss (in thousands) |
|
$ |
(48,606 |
) |
|
$ |
(50,290 |
) |
Weighted average shares outstanding for calculating basic and diluted loss per share(*) |
|
|
12,675,923 |
|
|
|
11,554,615 |
|
Basic and diluted loss per share(*) |
|
$ |
(3.83 |
) |
|
$ |
(4.35 |
) |
___________
* - |
Weighted average shares outstanding and basic diluted loss per share have been revised to reflect the Reverse Stock Split, effective November 29, 2024. |
For purposes of computing diluted loss per share, weighted average common shares outstanding do not include potentially dilutive securities, including warrants deemed to be participating securities, which are anti-dilutive, as shown below.
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|
For the year ended December 31, |
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|
|
2024 |
|
|
2023 |
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||
Anti-dilutive securities excluded from calculating dilutive loss per share(*): |
|
|
|
|
|
|
||
Shares of common stock issuable under stock option plans outstanding |
|
|
219,653 |
|
|
|
241,553 |
|
Shares of common stock issuable upon vesting of RSUs |
|
|
1,566,440 |
|
|
|
1,189,114 |
|
Shares of common stock issuable upon exercise of outstanding warrants |
|
|
1,750,000 |
|
|
|
— |
|
Potential common shares excluded from diluted net loss per share calculation |
|
|
3,536,093 |
|
|
|
1,430,667 |
|
___________
* - |
The number of anti-dilutive securities excluded from calculating dilutive loss per share have been revised to reflect the Reverse Stock Split, effective November 29, 2024. |
As described further in Note 14, "Debt" above, the Warrants are deemed to be participating securities as the holders of the Warrants could, in the event of a contingent dividend or distribution of cash, stock or other assets of the Company to common stockholders by way of return of capital or otherwise, be entitled to participate in such distribution to the same extent as a holder of common stock. Absent such an event, holders of the Warrants are not entitled to vote or receive dividends or be deemed to have the rights of a stockholder of the Company. Accordingly, the losses of the Company reflected above are attributed entirely to common stockholders.
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.