PIONEER POWER SOLUTIONS, INC. Earnings Per Share Disclosure
Basic earnings (loss) 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 earnings (loss) 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.
| For the Years Ended | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Numerator: | ||||||||
| Loss from continuing operations | $ | (3,349 | ) | $ | (6,279 | ) | ||
| Income from discontinued operations, net of income taxes | 35,204 | 4,381 | ||||||
| Net income (loss) | $ | 31,855 | $ | (1,898 | ) | |||
| Denominator: | ||||||||
| Weighted average common shares outstanding - basic | 10,745,217 | 9,905,234 | ||||||
| Effect of dilutive securities: | ||||||||
| Stock options | 186,958 | 138,565 | ||||||
| Restricted stock units | 21,686 | 83,389 | ||||||
| Weighted average common shares outstanding - diluted | 10,953,861 | 10,127,188 | ||||||
| Basic (loss) earnings per share: | ||||||||
| Loss per share from continuing operations | $ | (0.31 | ) | $ | (0.63 | ) | ||
| Earnings per share from discontinued operations | 3.28 | 0.44 | ||||||
| Basic earnings (loss) per share | $ | 2.97 | $ | (0.19 | ) | |||
| Diluted (loss) earnings per share: | ||||||||
| Loss per share from continuing operations | $ | (0.31 | ) | $ | (0.63 | ) | ||
| Earnings per share from discontinued operations | 3.21 | 0.43 | ||||||
| Diluted earnings (loss) per share | $ | 2.90 | $ | (0.20 | ) | |||
| For the Years Ended | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Stock options | 339,500 | 402,500 | ||||||
| Total | 339,500 | 402,500 | ||||||
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.