13. Net Loss per Share

 

The following is a reconciliation of the numerator (net loss) and the denominator (number of shares) used in the basic and diluted earnings per share calculations (in thousands):

 

   2024   2023 
   Year Ended December 31, 
   2024   2023 
Net loss  $(24,045)  $(20,713)
Cumulative dividend on convertible preferred stock   (1,308)   (1,343)
Net loss attributable to common stockholders  $(25,353)  $(22,056)
           
Weighted average number of common shares and equivalents:   85,183,306    80,702,358 
Basic EPS  $(0.30)  $(0.27)
Diluted EPS  $(0.30)  $(0.27)

 

The following table sets forth the number of common shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive as follows:

 

   December 31, 
   2024   2023 
Shares issuable upon vesting/exercise of:          
Options to purchase common stock   3,858,360    3,650,115 
Series A Convertible Preferred Stock and Accumulated Dividends   49,371,307    49,375,135 
Restricted stock units   1,546,532    1,502,131 
    54,776,199    54,527,381 

 

Historical Timeline

Fiscal YearFiled
2024Mar 14, 2025Showing above
2021Mar 10, 2022

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.