IRIDEX CORP Earnings Per Share Disclosure
16. Computation of Basic and Diluted Net Loss Per Common Share
A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows (in thousands, except per share amounts):
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Twelve Months Ended |
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January 3, 2026 |
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December 28, 2024 |
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Numerator: |
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Net loss |
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$ |
(4,437 |
) |
|
$ |
(8,910 |
) |
Denominator: |
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Weighted average shares of common stock (basic) |
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16,934 |
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|
16,439 |
|
Weighted average shares of common stock (diluted) |
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16,934 |
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|
16,439 |
|
Per share data: |
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Basic net loss per share |
|
$ |
(0.26 |
) |
|
$ |
(0.54 |
) |
Diluted net loss per share |
|
$ |
(0.26 |
) |
|
$ |
(0.54 |
) |
For the twelve months ended January 3, 2026 and December 28, 2024, stock options, restricted stock units, and restricted stock awards of 2,490,340 and 2,697,381 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding because to do so would have been anti-dilutive.
For the twelve months ended January 3, 2026 and December 28, 2024, potential shares from the conversion of Novel's convertible debt and preferred stock totaling 5,000,000 and 0, respectively, were excluded from the computation of diluted weighted average shares outstanding.
Before the Lind Note payoff, the total number of shares of Common Stock issuable pursuant to the terms of the Lind Transaction Documents was capped at (i) prior to the receipt of stockholder approval, 3,300,231 (equal to 19.99% of the number of shares of Common Stock outstanding as of August 4, 2024), and (ii) following the receipt of stockholder approval, 4,952,823 (equal to 30% of the number of shares of Common Stock outstanding as of August 4, 2024). These potential shares from the conversion of the Lind Note were excluded from the computation of diluted weighted average shares outstanding for the twelve months ended January 3, 2026 and December 28, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 2, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 29, 2024 | |
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.