LOSS PER COMMON SHARE
Basic loss per common share is computed using net loss divided by the weighted-average number of common shares outstanding during each period, excluding unvested RSUs and PSUs.
Diluted loss per common share represents net loss divided by the weighted-average number of common shares outstanding during the period, including common stock equivalents. Common stock equivalents consist of shares subject to share-based awards with exercise prices less than the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive.
The following table presents basic and diluted loss per common share for the years ended December 31, 2025, and 2024:
| | | | | | | | | | | | | | |
| | Years ended December 31, |
| | 2025 | | 2024 |
| Net loss | | $ | (289,790) | | | $ | (66,717) | |
| Weighted-average shares of common stock outstanding | | 4,647,945 | | | 4,598,640 | |
| Dilutive effect of share based compensation awards using the treasury stock method | | — | | | — | |
| Diluted weighted-average shares of common stock outstanding | | 4,647,945 | | | 4,598,640 | |
| Basic loss per common share | | $ | (62.35) | | | $ | (14.51) | |
| Diluted loss per common share | | $ | (62.35) | | | $ | (14.51) | |
The computation of the weighted-average shares of common stock outstanding for diluted loss per common share excludes the following potential shares of common stock as their inclusion would have an anti-dilutive effect on diluted loss per common share:
| | | | | | | | | | | | | | |
| | Years ended December 31, |
| | 2025 | | 2024 |
| Shares subject to unvested or deferred performance and restricted stock units | | 335,860 | | | 290,334 | |
| Shares subject to stock options outstanding | | 28,074 | | | 40,654 | |
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.