KOSS CORP Earnings Per Share Disclosure
Basic loss per share is computed based on the weighted-average number of common shares outstanding. Diluted loss per common share is calculated assuming the exercise of stock options except where the result would be anti-dilutive. The following table reconciles the numerator and denominator used to calculate basic and diluted loss per share:
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| Years Ended June 30, | |||
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| 2025 |
| 2024 | ||
Numerator |
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Net (loss) income |
| $ | (874,831) |
| $ | (950,911) |
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Denominator |
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Weighted average shares, basic |
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| 9,363,117 |
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| 9,251,373 |
Dilutive effect of stock compensation awards (1) |
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| — |
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| - |
Diluted shares |
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| 9,363,117 |
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| 9,251,373 |
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Net loss attributable to common shareholders per share: |
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Basic |
| $ | (0.09) |
| $ | (0.10) |
Diluted |
| $ | (0.09) |
| $ | (0.10) |
(1) Excludes 385,613 and 717,024 weighted average stock options during the years ended June 30, 2025 and 2024 as the impact of such awards 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.