Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 70

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 than not that its deferred tax assets will not be realized. Accordingly, the Company has established a full valuation allowance on its net deferred tax assets. The Company intends to continue maintaining a full valuation allowance on its federal and state deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of this allowance. However, given the Company’s current earnings and anticipated future earnings, the Company believes that there is a reasonable possibility in a future period that sufficient positive evidence may become available to allow the Company to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve.

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13. EARNINGS PER SHARE CALCULATION

Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share, applicable only to years ended with reported income is computed by dividing net income by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The calculation of basic and diluted earnings per share is presented below:Three months ended December 31,($ in thousands, except per share data)20242023Numerator for basic and diluted earnings per shareNet income$4,974 3,124Preferred dividends—— Net income applicable to common shareholders$4,974 $3,124 Denominator for basic earnings per share - Weighted average shares outstanding73,114,387 72,743,162 Effect of dilutive potential common shares1,619,221 1,170,437 Denominator for diluted earnings per share - Adjusted weighted average shares outstanding74,733,608 73,913,599 Basic earnings per share$0.07 $0.04 Diluted earnings per share$0.07 $0.04 Six months ended December 31,($ in thousands, except per share data)20242023Numerator for basic and diluted earnings per shareNet income$8,546 5,131Preferred dividends(289)(289)Net income applicable to common shareholders$8,257 $4,842 Denominator for basic earnings per