14. BASIC AND DILUTED (LOSS) EARNINGS PER SHARE

 

Basic (loss) earnings per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period. Diluted (loss) earnings per share data is computed using the weighted average number of common and dilutive common equivalent shares outstanding during each period. Dilutive common equivalent shares consist of shares that would be issued upon the exercise of stock options and vesting of restricted stock units, computed using the treasury stock method.

 

A reconciliation of basic and diluted (loss) earnings per share is as follows (in thousands, except per share data):

  

         
   For the Year Ended 
   December 31, 
   2025   2024 
Numerator:          
Loss from continuing operations  $(6,448)  $(3,349)
Income from discontinued operations, net of income taxes   449    35,204 
Net (loss) income  $(5,999)  $31,855 
           
Denominator:          
Weighted average common shares outstanding - basic   11,103,623    10,745,217 
Effect of dilutive securities:          
Stock options   84,245    186,958 
Restricted stock units   -    21,686 
Weighted average common shares outstanding - diluted   11,187,868    10,953,861 
           
Basic (loss) earnings per share:          
Loss per share from continuing operations  $(0.58)  $(0.31)
Earnings per share from discontinued operations   0.04    3.28 
Basic (loss) earnings per share  $(0.54)  $2.97 
           
Diluted (loss) earnings per share:          
Loss per share from continuing operations  $(0.58)  $(0.31)
Earnings per share from discontinued operations   0.04    3.21 
Diluted (loss) earnings per share  $(0.54)  $2.90 

 

The following securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

         
   For the Year Ended 
   December 31, 
   2025   2024 
Stock options   534,167    339,500 
Total   534,167    339,500 

 

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Historical Timeline

Fiscal YearFiled
2025Apr 8, 2026Showing above
2024Apr 15, 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.