RYTHM, Inc. Earnings Per Share Disclosure
Note 16 — Net Loss Per Share
Net loss per share calculations for all periods have been adjusted to reflect the Company’s reverse stock splits. Net loss per share was calculated based on the weighted-average number of the Company’s Common Stock outstanding.
Basic net loss per share is calculated using the weighted-average number of shares of Common Stock outstanding during the periods. Diluted net loss per share is computed by giving effect to all potential shares of Common Stock, including convertible notes, outstanding stock options, stock related to unvested restricted stock units, and outstanding warrants to the extent dilutive. Net loss per share, assuming dilution, is equal to basic net loss per share for the years ended December 31, 2024 and 2023 because the effect of dilutive securities outstanding during the periods, including convertible notes, options, restricted stock units and warrants computed using the treasury stock method, is anti-dilutive.
The components of basic and diluted net loss per share were as follows:
| Year Ended December 31, | ||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | ||||||
| Numerator: | ||||||||
| Net loss attributable to Agrify Corporation from continuing operations | $ | (28,352 | ) | $ | (13,429 | ) | ||
| Net loss attributable to Agrify Corporation from discontinued operations | $ | (13,394 | ) | $ | (5,221 | ) | ||
| Net loss available for common shareholders | $ | (41,746 | ) | $ | (18,650 | ) | ||
| Denominator: | ||||||||
| Weighted-average common shares outstanding – basic and diluted | 1,020,185 | 99,391 | ||||||
| Net loss per share attributable to Common Stockholders – basic and diluted | $ | (40.92 | ) | $ | (187.64 | ) | ||
The Company’s potential dilutive securities, which include stock options, restricted stock units, and warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of shares of Common Stock outstanding used to calculate both basic and diluted net loss per share attributable to holders of the Company’s Common Stock is the same. The Company excluded the following potential Common Stock equivalents presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to Common Stockholders for the periods indicated because including them would have had an anti-dilutive effect:
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Shares subject to outstanding stock options | 210 | 664 | ||||||
| Shares subject to unvested restricted stock units | 102,867 | 142 | ||||||
| Shares subject to outstanding warrants | 7,576,573 | 358,687 | ||||||
| 7,679,650 | 359,493 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 21, 2025 | Showing above |
| 2023 | Apr 15, 2024 | |
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.