Xtant Medical Holdings, Inc. Earnings Per Share Disclosure
Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted net (loss) income per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock outstanding during the period, which include the assumed exercise of stock options and warrants using the treasury stock method. Diluted net (loss) income per share was the same as basic net (loss) income per share for the year ended December 31, 2024, as shares issuable upon the exercise of stock options and warrants were anti-dilutive as a result of the net loss incurred for the period.
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Numerator: | ||||||||
| Net (loss) income | $ | (16,449 | ) | $ | 660 | |||
| Denominator: | ||||||||
| Basic – weighted average shares outstanding | 133,665,075 | 119,093,687 | ||||||
| Effect of dilutive securities: | ||||||||
| Employee restricted stock units | 2,447,519 | |||||||
| Warrants | 5,252,112 | |||||||
| Diluted – weighted average shares outstanding | 133,665,075 | 126,793,318 | ||||||
| Basic earnings per share | (0.12 | ) | 0.01 | |||||
| Diluted earnings per share | (0.12 | ) | 0.01 | |||||
For the years ended December 31, 2024 and 2023, and stock options, restricted stock units and warrants were excluded for the diluted earnings per share calculation as they were anti-dilutive.
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.