ProPhase Labs, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Net Earnings (Loss) Per Share

Net Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2025

Basic earnings (loss) per share excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per

share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or otherwise result in the issuance of common stock that shared in the earnings of the entity. Diluted earnings (loss) per share also utilizes the treasury stock method which prescribes a theoretical buy back of shares from the theoretical proceeds of all options outstanding during the period, and the if-converted method for convertible debt.

The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands):


	For the three months ended
	March 31, 2025		March 31, 2024
Loss from continuing operations after income taxes	$	(4,678)	$	(5,524)
Income (loss) from discontinued operations, net of tax	8,644		(741)
Net income (loss)	$	3,966	$	(6,265)
Weighted average common shares outstanding:
Basic	35,233		17,207
Diluted	35,233		17,207
Net earnings (loss) per share:
Loss from continuing operations, basic and diluted	$	(0.13)	$	(0.32)
Income (loss) from discontinued operations, basic and diluted	$	0.25	$	(0.04)
Net earnings (loss) per share, basic and diluted	$	0.11	$	(0.36)

The following table represents the number of securities excluded from the income per share computation as a result of their anti-dilutive effect (in thousands):


	For the three months ended
Anti-dilutive securities	March 31, 2025	March 31, 2024
Common stock purchase warrants	736	376
Stock options	4,720	4,452
Anti-dilutive securities	5,456	4,828

All common stock options and common stock purchase warrants outstanding as of March 31, 2025 were out of the money and were not included in net earnings per share calculation.