Note 8  Loss per Share 

 

Basic and diluted net loss per common share was calculated as follows:

 

(in thousands, except for net loss per share)  

Years Ended December 31,

 
  

2024

  

2023

 
         

Numerator:

        

Net loss

 $(15,586) $(8,402)
         

Denominator:

        

Weighted-average common shares outstanding

  3,771   2,765 

Weighted pre-funded warrants outstanding

  19   - 

Weighted-average common shares outstanding, basic and diluted

  3,790   2,765 
         
         

Net loss per common share, basic and diluted

 $(4.11) $(3.04)
         
Anti-dilutive potential common stock equivalents excluded from the calculation of net loss per share        
Stock options to purchase common stock  429   422 
Unvested restricted stock units  41   84 

 

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.