Lifeward Ltd.LFWD

Lifeward Ltd. Earnings Per Share Disclosure

10-KFiled Mar 7, 20251 min read
NOTE 15:-          BASIC AND DILUTED NET LOSS PER SHARE
 
The following table sets forth the computation of the Company’s basic and diluted net loss per ordinary share (in thousands, except share and per share data):
 
 
  
Year ended December 31,
  
 
  
2024
    
2023
    
2022
  
Net loss
  
$
(28,942
)
  
$
(22,133
)
  
$
(19,569
)
 
                        
Net loss attributable to ordinary shares
    
(28,942
)
    
(22,133
)
    
(19,569
)
Shares used in computing net loss per ordinary shares, basic and diluted *
    
8,691,271
      
8,531,294
      
8,911,256
  
 
                        
Net loss per ordinary share, basic and diluted
  
$
(3.33
)
  
$
(2.59
)
  
$
(2.20
)
 
(*) Reflects one-for-seven reverse share split that became effective on March 15, 2024. See Note 9a to the consolidated financial statements.

 

Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of ordinary shares and warrants outstanding would have been anti-dilutive.
 
For the twelve months ended December 31, 2024 and 2023 the total number of ordinary shares related to the outstanding warrants and share option plans aggregated to 2,385,274 and 2,745,792, respectively. The amount was excluded from the calculations of diluted loss per ordinary share since it would have an anti-dilutive effect.

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.

Other Available Disclosures

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