Algorhythm Holdings, Inc. Earnings Per Share Disclosure
| Year Ended | Year Ended | |||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Net loss available to common shareholders | $ | (15,871,000 | ) | $ | (23,257,000 | ) | ||
| Basic and diluted weighted average of common stock outstanding | ||||||||
| Loss per common share | ) | ) | ||||||
| Year Ended | Year Ended | |||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Basic weighted average common shares outstanding | 2,475,293 | 65,722 | ||||||
| Effect of dilutive stock options and warrants | ||||||||
| Diluted weighted average of common shares outstanding | 2,475,293 | 65,722 | ||||||
Basic net loss per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution assuming shares of common stock underlying in-the-money options and warrants have been issued upon the exercise of the options and warrants and the proceeds thereof were used to purchase shares of the Company’s common stock at the average market price during the period using the treasury stock method.
ALGORHYTHM HOLDINGS, INC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2025 and 2024
For the year ended December 31, 2025, shares of common stock underlying stock options and shares of common stock underlying warrants were excluded from the calculation of diluted net loss per share as the result would have been anti-dilutive. For the year ended December 31, 2024, shares of common stock underlying stock options and shares of common stock underlying warrants were excluded from the calculation of diluted net loss per share as the result would have been anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 2, 2026 | Showing above |
| 2024 | Apr 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.