Quest Resource Holding Corp Earnings Per Share Disclosure
14. Net Loss per Share
We compute basic net loss per share using the weighted average number of shares of common stock outstanding plus the number of common stock equivalents for DSUs during the period. We compute diluted net income (loss) per share using the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods where losses are reported, the weighted average number of shares of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. Dilutive potential common shares consist of the incremental common shares issuable upon the exercise of outstanding stock options and warrants. Dilutive potential securities are excluded from the computation of earnings per share if their effect is antidilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method.
The computation of basic and diluted net loss per share attributable to common stockholders is as follows (in thousands, except per share amounts):
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Years Ended December 31, |
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2024 |
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2023 |
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Numerator: |
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Net loss |
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$ |
(15,063 |
) |
|
$ |
(7,291 |
) |
Denominator: |
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Weighted average common shares outstanding, basic |
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20,617 |
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20,123 |
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Effect of dilutive securities |
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— |
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|
— |
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Weighted average common shares outstanding, diluted |
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20,617 |
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|
20,123 |
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Net loss per share |
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Basic |
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$ |
(0.73 |
) |
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$ |
(0.36 |
) |
Diluted |
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$ |
(0.73 |
) |
|
$ |
(0.36 |
) |
Anti-dilutive securities excluded from diluted net loss per share |
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Stock options |
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33 |
|
|
|
63 |
|
Total anti-dilutive securities excluded from diluted net loss per share |
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33 |
|
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63 |
|
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.