VerifyMe, Inc. Earnings Per Share Disclosure
Basic loss per share (EPS) is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
The dilutive common stock equivalent shares consist of preferred stock, stock options, warrants, restricted stock awards, and restricted stock units computed under the treasury stock method, using the average market price during the period.
The following table sets forth the computation of basic loss per share (in thousands, except share and per share data):
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net loss: | $ | (4,905 | ) | $ | (3,824 | ) | ||
| Denominator: | ||||||||
| Weighted average shares of common stock – basic | 12,619,512 | 10,402,508 | ||||||
| Loss per share: | ||||||||
| Basic | $ | (0.39 | ) | $ | (0.37 | ) | ||
| Diluted | $ | (0.39 | ) | $ | (0.37 | ) | ||
The following table represents the weighted average number of anti-dilutive instruments excluded from the computation of diluted loss per share:
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Anti-dilutive instruments excluded from computation of diluted net loss per share: | ||||||||
| Preferred Stock | ||||||||
| Stock Options | ||||||||
| Warrants | ||||||||
| Stock purchase plan | ||||||||
| Convertible note | ||||||||
| Restricted Stock Units and Restricted Stock Awards | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 28, 2023 | |
| 2021 | Mar 14, 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.