EVERSPIN TECHNOLOGIES INC. Earnings Per Share Disclosure
13. Net Income Per Common Share
The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share amounts):
Basic EPS
Year Ended December 31, | |||||||
|
| 2024 |
| 2023 | |||
Numerator: |
|
|
|
|
| ||
Net income | $ | 781 | $ | 9,052 | |||
Denominator: |
|
|
|
| |||
Weighted-average shares of common stock outstanding, basic |
| 21,642,793 |
| 20,748,302 | |||
Net income per common share, basic | $ | 0.04 | $ | 0.44 | |||
Diluted EPS
Year Ended December 31, | |||||||
|
| 2024 |
| 2023 | |||
Numerator: |
|
|
|
|
| ||
Net income | $ | 781 | $ | 9,052 | |||
Warrant liability fair value loss recognized | — | (25) | |||||
Net income attributable to common stockholders, diluted | $ | 781 | $ | 9,027 | |||
Denominator: |
|
|
|
| |||
Weighted-average shares of common stock outstanding, basic |
| 21,642,793 |
| 20,748,302 | |||
Dilutive effect of stock options and RSUs | 513,627 | 619,002 | |||||
Weighted-average shares of common stock outstanding, diluted |
| 22,156,420 |
| 21,367,304 | |||
Net income per common share, diluted | $ | 0.04 | $ | 0.42 | |||
The following outstanding shares of potentially dilutive securities outstanding have been excluded from the computation of diluted net income per common share for the periods presented as their inclusion would be anti-dilutive:
Year Ended December 31, | |||
2024 |
| 2023 | |
Options to purchase common stock | 741,141 |
| 613,652 |
RSUs | 21,624 | 330,082 | |
Common stock warrants | — |
| 18,461 |
Total | 762,765 |
| 962,195 |
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.