RCM TECHNOLOGIES, INC. Earnings Per Share Disclosure
| 10. | PER SHARE DATA |
The Company uses the treasury stock method to calculate the weighted-average shares outstanding used for diluted earnings per share. The number of weighted-average shares used to calculate basic and diluted earnings per share for the fiscal years ended January 3, 2026 and December 28, 2024 was determined as follows:
| Fiscal Years Ended | ||||||||
| January 3, 2026 | December 28, 2024 | |||||||
| Basic weighted average shares outstanding | 7,449,377 | 7,737,063 | ||||||
| Dilutive effect of outstanding restricted stock awards | 186,363 | 202,318 | ||||||
| Diluted weighted average shares outstanding | 7,635,740 | 7,939,381 | ||||||
For the fiscal years ended January 3, 2026 and December 28, 2024, there were anti-dilutive shares included in the calculation of common stock equivalents as there were stock options outstanding.
Unissued shares of common stock were reserved for the following purposes:
| January 3, 2026 | December 28, 2024 | |||||||
| Time-based restricted stock and stock unit awards outstanding | 179,037 | 289,421 | ||||||
| Performance-based restricted stock and stock unit awards outstanding | 282,157 | 300,000 | ||||||
| Future grants of options or shares available | 1,248,902 | 295,680 | ||||||
| Shares reserved for employee stock purchase plan | 216,574 | 252,119 | ||||||
| Total | 1,926,670 | 1,137,220 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 3, 2026 | Showing above |
| 2024 | Mar 13, 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.