Glucotrack, Inc. Earnings Per Share Disclosure
| NOTE 16 | – | INCOME (LOSS) PER SHARE |
|
US dollars
|
||||||||||||
|
Year ended December 31,
|
||||||||||||
|
2017
|
2016
|
2015
|
||||||||||
|
Income (loss) for the year
|
(10,328,806
|
)
|
(5,409,737
|
)
|
(5,842,172
|
)
|
||||||
|
Cash dividend on Series A Preferred Stock
|
(14,950
|
)
|
(18,229
|
)
|
(57,061
|
)
|
||||||
|
Stock dividend on Series B Preferred Stock
|
(854,647
|
)
|
(647,215
|
)
|
(390,219
|
)
|
||||||
|
Stock dividend on Series C Preferred Stock
|
(566,033
|
)
|
(152,480
|
)
|
-
|
|||||||
|
Income (loss) for the period attributable to common stockholders
|
(11,764,436
|
)
|
(6,227,661
|
)
|
(6,289,452
|
)
|
||||||
|
Number of shares
|
||||||||||||
|
Year ended December 31,
|
||||||||||||
|
2017
|
2016
|
2015
|
||||||||||
|
Common shares used in computing Basic income (loss) per share
|
6,285,324
|
5,788,842
|
5,476,870
|
|||||||||
|
Common shares used in computing Diluted income (loss) per share (*)
|
6,285,324
|
5,788,842
|
5,476,870
|
|||||||||
|
Total weighted average number of Common shares related to outstanding convertible Preferred Stock, options and warrants excluded from the calculations of diluted income (loss) per share (**)
|
21,300,975
|
12,745,874
|
9,431,728
|
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| (*) |
In applying the treasury method, the average market price of Common Stock was based on management estimate. For December 31, 2017, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series D Units. For December 31, 2016 and 2015, management estimation considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series C Units and Series B Units (See Note 10C).
|
| (**) |
The Company excludes from the calculation of diluted income (loss) per share, shares that will be issued upon the exercise of options and warrants with exercise prices, that are greater than the estimated average market value of the Company’s Common Stock and shares issuable upon conversion of Preferred Stock because their effect would be anti-dilutive. Outstanding shares that will be issued upon conversion or exercise, as applicable, of all convertible Preferred Stock, stock options and warrants, have been excluded from the calculation of the diluted net loss per share for all the reported periods for which net loss was reported because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive. |
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.