NET LOSS PER SHARE

3 Months Ended

Sep. 30, 2025

Net loss per common share

NET LOSS PER SHARE

NOTE 3. NET LOSS PER SHARE

Basic net loss per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted average number of shares of Series B, Voting, Convertible Preferred Stock (“Series B Preferred Stock”) outstanding as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights and each share of Series B Preferred Stock is convertible at any time into 20 shares of the Company’s common stock. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Since the Company generated a net loss in the quarters ended September 30, 2025 and 2024, basic and diluted net loss per share were the same. The Company excluded the following shares from the diluted net loss per share calculation as their effect would be anti-dilutive.

	Quarter Ended September 30,
	2025		2024
Warrants outstanding		82,500		82,500
Stock options outstanding		343,667		640,881
Restricted Stock Awards outstanding		101,803		410,491
Total common stock equivalents excluded		527,970		1,133,872

Basic and diluted net loss per share reflects the effects of shares potentially issuable upon conversion of the convertible Series B Preferred Stock.

The components of basic and diluted earnings per share were as follows (in thousands, except per share data):

	Quarter Ended								Quarter Ended
	September 30, 2025								September 30, 2024
	Net Loss			Shares		Per Share			Net Loss			Shares		Per Share
Basic and diluted net loss per share:
Net loss attributable to common shareholders	$	(354	)		42,693	$	(0.01	)	$	(1,548	)		39,861	$	(0.04	)
Net loss attributable to preferred shareholders		(2	)		266	$	(0.01	)		(38	)		987	$	(0.04	)
Basic and diluted net loss per share	$	(356	)		42,959	$	(0.01	)	$	(1,586	)		40,848	$	(0.04	)