The Lovesac Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Basic and Diluted Net Income (Loss) Per Common Share

Basic and Diluted Net Income (Loss) Per Common Share

6 Months Ended

Aug. 04, 2024

Basic and Diluted Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive potential common shares, including unvested restricted stock units, stock options, and warrants. Diluted net income per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities under the treasury stock method, where the average market price of the common stock exceeds the exercise prices for the respective periods. In periods of loss, there are no potentially dilutive common shares to add to the weighted average number of common shares outstanding.


	Thirteen weeks ended				Twenty-six weeks ended
(amounts in thousands, except per share data and share amounts)	August 4, 2024		July 30, 2023		August 4, 2024		July 30, 2023
Net loss	$	(5,861)	$	(635)	$	(18,821)	$	(4,750)

Weighted-average number of common shares outstanding, basic	15,590,207		15,422,640		15,564,016		15,326,702
Effect of dilutive securities(1)	—		—		—		—
Weighted-average number of common shares outstanding, diluted	15,590,207		15,422,640		15,564,016		15,326,702

Basic net loss per share	$	(0.38)	$	(0.04)	$	(1.21)	$	(0.31)
Diluted net loss per share	$	(0.38)	$	(0.04)	$	(1.21)	$	(0.31)

(1) The effect of dilutive securities includes unvested restricted stock units and stock options. For the thirteen weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. For the twenty-six weeks ended August 4, 2024 and July 30, 2023, unvested restricted stock units of 1,325,091 and 1,060,705, respectively, and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.