8.
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
Basic
earnings (loss) per share data for each period presented is computed using the weighted average number of shares of common stock outstanding
during each such period. Diluted earnings (loss) per share data is computed using the weighted average number of common and dilutive
common equivalent shares outstanding during each period. Dilutive common equivalent shares consist of shares that would be issued upon
the exercise of stock options and vesting of restricted stock units, computed using the treasury stock method.
In periods of net loss, diluted loss per share is
computed using the same number of weighted-average shares as basic loss per share, as the inclusion of potentially dilutive securities
would be anti-dilutive.
A
reconciliation of basic and diluted earnings (loss) per share is as follows (in thousands, except per share data):
SCHEDULE
OF RECONCILIATION BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
| | |
2026 | | |
2025 | |
| | |
For the Three
Months Ended | |
| | |
March
31, | |
| | |
2026 | | |
2025 | |
| Numerator: | |
| | | |
| | |
| Loss from continuing
operations | |
$ | (2,508 | ) | |
$ | (2,076 | ) |
| Income
from discontinued operations, net of income taxes | |
| - | | |
| 1,147 | |
| Net
loss | |
$ | (2,508 | ) | |
$ | (929 | ) |
| | |
| | | |
| | |
| Denominator: | |
| | | |
| | |
| Weighted average common shares outstanding
- basic | |
| 11,095,588 | | |
| 11,120,266 | |
| Effect of dilutive securities: | |
| | | |
| | |
| Stock
options | |
| - | | |
| 67,218 | |
| Weighted average common
shares outstanding - diluted | |
| 11,095,588 | | |
| 11,187,484 | |
| | |
| | | |
| | |
| Basic (loss) earnings per share: | |
| | | |
| | |
| Loss per share from continuing
operations | |
$ | (0.23 | ) | |
$ | (0.19 | ) |
| Earnings
per share from discontinued operations | |
| - | | |
| 0.10 | |
| Basic loss per
share | |
$ | (0.23 | ) | |
$ | (0.09 | ) |
| | |
| | | |
| | |
| Diluted (loss) earnings per share: | |
| | | |
| | |
| Loss per share from continuing
operations | |
$ | (0.23 | ) | |
$ | (0.19 | ) |
| Earnings
per share from discontinued operations | |
| - | | |
| 0.10 | |
| Diluted loss per share | |
$ | (0.23 | ) | |
$ | (0.09 | ) |
The
following securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE
| | |
2026 | | |
2025 | |
| | |
For the Three
Months Ended | |
| | |
March
31, | |
| | |
2026 | | |
2025 | |
| Stock options | |
| 533,167 | | |
| 387,500 | |
| Total | |
| 533,167 | | |
| 387,500 | |
|