TaoWeave, Inc. Earnings Per Share Disclosure

Note 8 - Net Loss Per Share

 

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. Vested RSUs (for which shares of common stock have not yet been delivered) are included in the calculations of basic net loss per share. Unvested RSUs are not included in calculations of basic net loss per share, as they are not considered issued and outstanding at the time of grant.

 

Diluted net loss per share is computed by giving effect to all potential shares of common stock, including warrants, stock options, RSUs, and unvested restricted stock awards, to the extent they are dilutive. For the year ended December 31, 2024, all such common stock equivalents have been excluded from diluted net loss per share as the effect on net loss per share would be anti-dilutive (due to the net losses).

 

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):

 

		Year Ended December 31,
Numerator:		2024				2023
Net loss		$	(4,043	)		$	(4,384	)
Less: preferred stock dividends			89				343
Less: deemed dividend			8,974				—
Less: conversion inducement			—				751
Less: warrant modification			—				25
Net loss attributable to common stockholders		$	(13,106	)		$	(5,503	)
Denominator:
Weighted-average number of shares of common stock for basic net loss per share			834				293
Basic net loss per share		$	(15.71	)		$	(18.81	)

 

The following table represents the potential shares that were excluded from the computation of the weighted average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:

 

		Year Ended December 31,
		2024				2023
Outstanding stock options			—				250
Common stock issuable upon conversion of Series F Preferred Stock (1)			51,357				184,820
Common stock issuable upon conversion of Series F Preferred Warrants (2)			2,784,921				2,932,486
Common stock issuable upon conversion of Common Stock Warrants			2,272,203				2,071,855

 

(1)

Calculation assumes the conversion of the stated value and accrued dividends of the Series F Preferred Stock into Common Stock at the current exercise price of $11.17.

(2)

Calculation assumes the exercise of the Series F Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at the Floor Price of $11.17.