17.    Earnings (Loss) Per Common Share

Basic earnings (loss) per common share is computed by dividing the net income (loss) allocated to common stockholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of calculating diluted earnings per common share, the denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and warrants using the treasury stock method. The following table summarizes the components of the earnings (loss) per common share calculation (in thousands, except per share amounts):

Year Ended

June 30, 

2025

    

2024

Basic and diluted numerator:

Net loss from continuing operations

$

(18,377)

$

(15,443)

Net loss from discontinued operations

$

$

(9,464)

Net loss - total

$

(18,377)

$

(24,907)

Basic and diluted denominator:

Weighted-average common shares outstanding

 

10,499

 

3,831

 

 

Per share amount - continuing operations

$

(1.75)

$

(4.03)

Per share amount - discontinued operations

$

$

(2.47)

Per share amount - total

$

(1.75)

$

(6.50)

In fiscal years 2025 and 2024, the Company incurred net losses which cannot be diluted; therefore, basic and diluted loss per common share is the same. As of June 30, 2025 and 2024, shares issuable which could potentially dilute future earnings included were as follows:

June 30, 

    

2025

    

2024

(in thousands)

Stock options

 

1,186

 

912

Restricted stock units

    

    

37

Warrants

16,331

12,127

Shares excluded from the calculation of diluted loss per share

 

17,517

 

13,076

Historical Timeline

Fiscal YearFiled
2025Sep 5, 2025Showing above
2022Oct 11, 2022
2019Aug 26, 2019

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.