Journey Medical Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NET EARNINGS (LOSS) PER COMMON SHARE

NET EARNINGS (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2023

NET EARNINGS (LOSS) PER COMMON SHARE

NOTE 18. NET EARNINGS (LOSS) PER COMMON SHARE

The Company accounts for and discloses net earnings (loss) per share using the treasury stock method. Net earnings (loss) per share, or basic earnings (loss) per share, is computed by dividing net earnings (loss) by the weighted-average number of shares of common stock

outstanding. Net earnings (loss) per share assuming dilutions, or diluted earnings (loss) per share, is computed by reflecting the potential dilution from the exercise of in-the-money stock options and the issuance of non-vested restricted stock units.

Diluted net income (loss) per share was calculated as follows:


	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2023		2022		2023		2022
Diluted earnings per share
Numerator:
Net income (loss) - basic and diluted	$	16,789	$	(10,080)	$	(1,710)	$	(18,986)

Denominator
Weighted-average shares outstanding - basic		18,416,368		17,618,064		18,078,437		17,464,561

Dilutive impact from:
Stock options		1,252,578		—		—		—
Restricted stock units		1,365,812		—		—		—
Weighted-average shares outstanding – diluted		21,034,758		17,618,064		18,078,437		17,464,561

Net income (loss) per share – basic	$	0.91	$	(0.57)	$	(0.09)	$	(1.09)
Net income (loss) per share - diluted	$	0.80	$	(0.57)	$	(0.09)	$	(1.09)

Potentially dilutive securities excluded from the calculation of net income (loss) per share
Unvested restricted stock units		—		2,401,589		1,365,812		2,401,589
Stock options		976,949		1,509,484		1,144,412		1,643,454
Total potentially dilutive securities		976,949		3,911,073		2,510,224		4,045,043

The Company’s potentially dilutive securities, including unvested restricted stock and options have been excluded from the computation of diluted loss per share for the nine-month period ended September 30, 2023 and for the three and nine-month periods ended September 30, 2022, as the effect would be to reduce the loss per share. Therefore, the weighted average Common Stock outstanding used to calculate both basic and diluted income loss per share is the same for the nine-month period ended September 30, 2023, and for the three and nine-month periods ended September 30, 2022.