Stock issuance deducts from GAAP earnings. So yes, it sounds like they would be profitable excluding this issuance.
Imagine you own 1% of a business that nets $100/year in cashflow, so you're entitled to $1/year. But they give the employees of that business 2% (of total count) additional shares per year (and not you).
Are you making or losing money? Cash flow positive, negative earnings... loss of your equity exceeds your cashflow.
Imagine you own 1% of a business that nets $100/year in cashflow, so you're entitled to $1/year. But they give the employees of that business 2% (of total count) additional shares per year (and not you).
Are you making or losing money? Cash flow positive, negative earnings... loss of your equity exceeds your cashflow.