Nuvectis Pharma, Inc. Earnings Per Share Disclosure
NOTE 8 – NET LOSS PER SHARE:
a. | Basic |
Basic net loss per share is calculated by dividing the net loss attributable to the Company’s shareholders by the weighted average number of common shares outstanding.
| |||||||
For the year ended | |||||||
December 31, 2025 | | December 31, 2024 | |||||
Net loss | $ | (26,442) |
| $ | (19,000) |
| |
Effect of warrants modification, see Note 6 | (2,429) | — | |||||
Total net loss attributable to common shareholders | $ | (28,871) | $ | (19,000) | |||
Basic and diluted net loss per common share | (1.32) |
| (1.11) |
| |||
Weighted average of common shares outstanding | 21,812,716 |
| 17,113,169 |
| |||
Basic loss per share is calculated by dividing the result attributable to equity holders of the Company by the weighted average number of Ordinary Shares in issue during the year.
For the year ended | |||||
December 31, 2025 | December 31, 2024 | ||||
Weighted average of common shares | 24,147,081 |
| 18,525,902 | ||
Average unvested RSAs | (2,334,365) | (1,412,733) | |||
Weighted average of common shares outstanding |
| 21,812,716 |
| 17,113,169 | |
b. | Diluted |
As of December 31, 2025 and 2024, respectively, the Company excluded potentially dilutive securities from the calculation of diluted net loss per Ordinary Share because their effects would have been anti-dilutive.
The following potentially dilutive securities were excluded from the calculation of diluted net loss per Ordinary Share because their effect would have been anti-dilutive for the years presented:
| For the year ended | | For the year ended | |
December 31, | December 31, | |||
2025 | 2024 | |||
Common shares issuable in relation to: |
| |
| |
Warrants |
| 159,870 |
| 159,870 |
Options |
| 348,281 |
| 348,281 |
Unvested RSA * |
| 2,434,123 |
| 1,559,326 |
| * | Includes 193,557 of RSAs granted outside of the Incentive Plan see explanation in Note 7. |
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.