Note 6 - Loss Per Common Share

6 Months Ended

Jul. 05, 2026

Notes to Financial Statements

Earnings Per Share [Text Block]

(6)

Loss Per Common Share

The Company computes earnings (loss) per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends.

Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three and six months ended July 5, 2026, and June 29, 2025, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive.

A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted loss per common share is as follows (in thousands):

		Three Months Ended								Six Months Ended
		July 5,				June 29,				July 5,				June 29,
		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
(Loss) attributable to stockholders:
Net (loss) as reported		$	(3,113	)		$	(2,051	)		$	(7,239	)		$	(2,950	)
Less distributed and undistributed earnings allocable to restricted award holders			0				0				0				0
Less dividends declared attributable to restricted award holders			0				0				0				0
Net (loss) allocable to common stockholders		$	(3,113	)		$	(2,051	)		$	(7,239	)		$	(2,950	)

(Loss) per common share attributable to stockholders:
Basic		$	(0.14	)		$	(0.09	)		$	(0.32	)		$	(0.13	)
Diluted		$	(0.14	)		$	(0.09	)		$	(0.32	)		$	(0.13	)

Weighted average shares outstanding – basic			22,421				22,285				22,374				22,214
Weighted average additional shares assuming conversion of potential common shares			0				0				0				0
Weighted average shares outstanding – diluted			22,421				22,285				22,374				22,214