Note 7. Earnings (Loss) per Share

 

Net income (loss) per common share is calculated in accordance with ASC Topic 260: Earnings per Share (“ASC 260”). Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. 

 

The components of basic and diluted EPS were as follows (in thousands, except per share data). For all periods presented, the Company incurred a net loss causing inclusion of any potentially dilutive securities to have an anti-dilutive effect, resulting in diluted loss per common share and basic loss per common share being equivalent.

 

  

Years Ended December 31,

 
  

2025

  

2024

 

Net loss attributable to common stockholders

 $(11,712) $(13,426)
         

Basic weighted average common shares outstanding

  26,535   20,614 

Potentially dilutive common shares

      

Diluted weighted average common shares outstanding

  26,535   20,614 
         

Basic weighted average loss per common share

 $(0.44) $(0.65)

Diluted weighted average loss per common share

 $(0.44) $(0.65)
         
         

Potentially dilutive common shares excluded from the calculation of diluted weighted average loss per common share:

        

Stock options

     13 

Common stock purchase warrants

      
      13 

  

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 24, 2025

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.