Genasys Inc. Earnings Per Share Disclosure
18. NET LOSS PER SHARE
Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period increased to include the number of dilutive potential common shares outstanding during the period. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method, which assumes that the proceeds from the exercise of the outstanding options are used to repurchase common stock at market value. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. If the Company has losses for the period, the inclusion of potential common stock instruments outstanding would be anti-dilutive. In addition, under the treasury stock method, the inclusion of stock options with an exercise price greater than the per-share market value would be antidilutive. Potential common shares that would be antidilutive are excluded from the calculation of diluted income per share.
The following table sets forth the computation of basic and diluted earnings per share:
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Years ended |
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September 30, |
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2025 |
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2024 |
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Net loss |
|
$ |
(18,112 |
) |
|
$ |
(31,730 |
) |
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|
|
|
|
|
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Basic and diluted loss per share |
|
$ |
(0.40 |
) |
|
$ |
(0.72 |
) |
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|
|
|
|
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Weighted average shares outstanding - basic |
|
|
45,056,436 |
|
|
|
44,316,865 |
|
Weighted average shares outstanding - diluted |
|
|
45,056,436 |
|
|
|
44,316,865 |
|
|
|
|
|
|
|
|
||
Potentially dilutive securities outstanding at period end excluded from diluted computation as the inclusion would have been antidilutive: |
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|
|
|
|
|
||
Options |
|
|
3,999,116 |
|
|
|
3,695,740 |
|
RSU |
|
|
277,342 |
|
|
|
288,059 |
|
Obligation to issue common stock |
|
|
— |
|
|
|
270,271 |
|
Warrants |
|
|
3,068,182 |
|
|
|
3,068,182 |
|
Total |
|
|
7,344,640 |
|
|
|
7,322,252 |
|
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.