INTERLINK ELECTRONICS INC Earnings Per Share Disclosure
Note 6 – Earnings Per Share
Basic earnings per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period, plus the dilutive effect of any dilutive securities.
On September 24, 2025, the Company declared a 50% common stock dividend that was paid on October 28, 2025. The effect of this stock dividend (which is accounted for as a stock split effected in the form of a stock dividend) has been applied retroactively to weighted average common shares outstanding and earnings per share, as if the 50% common stock dividend had occurred at the beginning of the earliest period presented.
The following table sets forth the computation of basic and diluted earnings per share:
Year Ended December 31, | ||||||
2025 | 2024 | |||||
(in thousands, except per share data) | ||||||
Net loss | | $ | (1,615) | | $ | (1,984) |
Less: Preferred stock dividends |
| (333) |
| (400) | ||
Net loss applicable to common stockholders | $ | (1,948) | $ | (2,384) | ||
Weighted average common shares outstanding – basic |
| 14,924 |
| 14,793 | ||
Dilutive potential common shares from convertible preferred stock and restricted stock units |
| — |
| — | ||
Weighted average common shares outstanding – diluted |
| 14,924 |
| 14,793 | ||
Earnings (loss) per common share, basic | $ | (0.13) | $ | (0.16) | ||
Earnings (loss) per common share, diluted | $ | (0.13) | $ | (0.16) | ||
Shares issuable upon conversion of Series A Convertible Preferred Stock excluded from calculation because their conversion would be anti-dilutive |
| n/a |
| 900 | ||
Shares subject to restricted stock units excluded from calculation because their effect would be anti-dilutive |
| 47 |
| 47 | ||
For 2024, 200,000 shares of Series A Convertible Preferred Stock convertible into 900,000 shares of Common Stock were outstanding but were not included in the computation of diluted earnings (loss) per share because the effect of their conversion would have been anti-dilutive due to the net losses; for 2025, they are not included because the preferred shares were converted to common shares in October 2025. For both years, 46,875 restricted stock units (relating to the same number of shares of Common Stock) were outstanding but were not included in the computation of diluted earnings (loss) per share because their effect would be anti-dilutive due to the net losses.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 29, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 17, 2021 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 2, 2017 | |
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.