12. Earnings per share

Earnings per share was computed as follows (in thousands, except per share amounts):

   
Years Ended December 31,
 
 
2025
   
2024
 
Net loss
 
$
(1,240
)
 
$
(9,863
)
                 
Shares:
               
Basic:  Weighted average common shares outstanding
   
10,087
     
9,997
 
Add:  Dilutive effect of outstanding equity awards as determined by the treasury stock method
   
     
 
Diluted:  Weighted average common and common equivalent shares outstanding
   
10,087
     
9,997
 
                 
Net loss per common share:
               
Basic
 
$
(0.12
)
 
$
(0.99
)
Diluted
   
(0.12
)
   
(0.99
)

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.  These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.  Furthermore, in periods when a net loss is reported, such as in 2025 and 2024, basic and diluted net loss per common share are calculated using the same method.  There were 1.2 million and 1.8 million of anti-dilutive stock awards excluded from the computation of earnings per share for the years ended December 31, 2025 and 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 24, 2025
2023Mar 13, 2024
2022Mar 28, 2023
2021Mar 24, 2022
2020Mar 12, 2021
2019Mar 16, 2020
2018Mar 18, 2019
2017Mar 21, 2018
2016Mar 16, 2017

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.