Strata Critical Medical, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings per Common Share

Earnings per Common Share

9 Months Ended

Sep. 30, 2025

The Company has granted restricted stock awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share (“EPS”) calculation under the two-class method. Basic earnings per common share is computed using the two-class method by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated using the more dilutive of the treasury stock method or the two-class method. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options, warrants, and nonvested restricted stock, where applicable. Diluted EPS under the two-class method also considers the allocation of earnings to the participating securities. Antidilutive securities are disregarded in earnings per share calculations. Diluted EPS shown below reflects the two-class method, as diluted EPS under the two-class method was more dilutive than under the treasury stock method.

A reconciliation of net loss and common share amounts used in the computation of basic and diluted income (loss) per common share is presented below.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024











Numerator:
Net loss from continuing operations	$	(9,657)	$	(5,627)	$	(14,678)	$	(8,731)
Net income (loss) from discontinued operations	67,073		3,673		64,858		(8,783)
Net income (loss)	$	57,416	$	(1,954)	$	50,180	$	(17,514)









Denominator:




Total weighted-average common shares outstanding	82,454,657		78,044,254		81,223,912		77,151,361

Basic and diluted earnings (loss) per share
Continuing operations	$	(0.12)	$	(0.07)	$	(0.18)	$	(0.11)
Discontinued operations	0.81		0.05		0.80		(0.11)
Total basic and diluted earnings (loss) per share	$	0.70	$	(0.03)	$	0.62	$	(0.23)

The following table represents common stock equivalents that were excluded from the computation of diluted loss per common share for the three and nine months ended September 30, 2025 and 2024 because the effect of their inclusion would be anti-dilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024


Warrants to purchase shares of common stock	14,166,644	14,166,644	14,166,644	14,166,644
Options to purchase shares of common stock	3,125,177	6,526,611	3,125,177	6,526,611
Outstanding earn-out shares (1)	1,717,303	—	1,717,303	—
Restricted shares of common stock	10,387,606	10,112,365	10,387,606	10,112,365
Total potentially dilutive securities	29,396,730	30,805,620	29,396,730	30,805,620

(1) Pursuant to the Company's acquisition of Keystone, 1,717,303 shares were issued and outstanding and transferred to an escrow agent at the close of the acquisition. While these shares are legally issued and outstanding, they are excluded from the weighted average shares outstanding calculation because they are contingently returnable based on the determination of Keystone’s 2025 final Adjusted EBITDA discussed above.