ProPhase Labs, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2023

Basic earnings per share (“EPS”) 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 EPS 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 EPS 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 years ended
	December 31, 2023		December 31, 2022
Net (loss) income - basic	$	(16,782)	$	18,463
Interest on unsecured convertible promissory note	—		632
Net (loss) income - diluted	$	(16,782)	$	19,095
Weighted average shares outstanding - basic	17,207		15,845
Diluted shares- Stock Options	—		1,493
Diluted shares- Stock Warrants	—		1,073
Unsecured convertible promissory note	—		240
Weighted average shares outstanding - diluted	$	17,207	$	18,651

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 years ended
Anti-dilutive securities	December 31, 2023	December 31, 2022
Common stock purchase warrants	831	455
Stock Options	2,951	770
Anti-dilutive securities	3,782	1,225