Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) attributable to Ultralife by the weighted average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities when the average market price exceeds the exercise price of the securities, if any, and is calculated using the treasury stock method.

For the three-month period ended June 30, 2026, there were 295,455 outstanding stock options and 19,543 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 55,268 potential common shares included in the calculation of diluted EPS. For the comparable three-month period ended June 30, 2025, there were 214,971 outstanding stock options and 35,486 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 21,856 potential common shares included in the calculation of diluted EPS.

There were 649,990 outstanding stock options for the three-month period ended June 30, 2026, and 783,093 outstanding stock options for the comparable three-month period ended June 30, 2025, that were not included in the calculation of diluted weighted average shares outstanding as the effect would be anti-dilutive.

For the six-month period ended June 30, 2026, there were 203,705 outstanding stock options and 19,543 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, resulting in 44,992 potential common shares included in the calculation of diluted EPS. For the comparable six-month period ended June 30, 2025, there were 214,971 outstanding stock options and 35,486 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, resulting in 37,237 potential common shares included in the calculation of diluted EPS.

There were 741,740 and 783,093 outstanding stock options for the six-month periods ended June 30, 2026 and 2025, respectively, not included in the calculation of diluted weighted average shares outstanding as the effect would be anti-dilutive.