Exponent = 000…0 → hidden bit is 0
$$ X = (-1)^S*(0+Fraction)*2^{-Bias} $$
Smaller than normal numbers
Denormal with fraction = 000…0
$$ X = (-1)^S*(0+0)*2^{-Bias} = \pm0.0 $$
Consider a 4-digit decimal example
$9.99910^1 + 1.61010^{-1}$
Align decimal point
Add significands
$9.99910^1 + 0.01610^1 = 10.015*10^1$
Normalize result & check for over/underflow
$1.0015*10^2$
Round and renormalize if necessary
$1.002*10^2$
Now consider a 4-digit binary example
$1.000_22^{-1}+-1.110_22^{-2}$
Align binary points
$1.000_22^{-1}+-0.111_2-2^{-1}$$1.002_22^{-1}+-0.111_2-2^{-1}$
Add significands
$1.000_22^{-1}+-0.111_2-2^{-1} = 0.001_2*2^{-1}$
Normalize result & check for over/underflow
$1.000_2*2^{-4}$, with no over/underflow