Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 132

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 132
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        6,932

        Assets

        292

        7,061

        8,150

        28,389

        38,081

        81,973

        Liabilities

        289

        1,102

        4,000

        10

        —

        5,401

Note 6 – Earnings per ShareThe Company is required, in periods in which it has net income, to calculate basic earnings per share (“basic EPS”) using the two-class method. The two-class method is required because the Company’s shares of Series N preferred stock, each of which is convertible to 40 common shares, have the right to receive dividends or dividend equivalents should the Company declare dividends on its common stock. Under the two-class method, earnings for the period are allocated on a pro-rata basis to the common and preferred stockholders. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares. For 2024 and 2023, the earnings allocated to the preferred shares outstanding were not material. In periods in which the Company has a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used in periods in which the Company has a net loss because the preferred stock does not participate in losses.Stock options and other potential common shares are included in the calculation of diluted earnings per share (“diluted EPS”). The Company uses the treasury stock method for calculating dilutive potential common shares. In calculating diluted EPS, such shares are assumed to be exercised or converted, except when their effect would be anti-dilutive.The table below shows the calculation of the shares used in computing diluted EPS: 

        Year Ended December 31,

        Weighted Average Shares Calculation:
         
        2024

        2023

        Basic weighted average shares outstanding

        36,430,211

        36,677,098

        Treasury stock effect of common stock options and restricted stock awards

        700,904

        910,210

        Diluted weighted average common shares outstanding

        37,131,115

        37,587,308

      For 2024 and 2023 there were potential common shares relating to common stock options totaling approximately 0.9 million and 0.8 million,