Note 14. Earnings per share

 

Basic and diluted net income (loss) per share attributable to common stockholders is computed in accordance with Note 2. Significant accounting policies and recent accounting pronouncements – Net income (loss) per share attributable to common stockholders.

The following table presents potentially dilutive securities that were not included in the computation of diluted net (loss) income per share of common stock as their inclusion would have been anti-dilutive and or their issuance upon satisfying a contingency, if applicable, was not satisfied or deemed satisfied as of period end:

 

 

 

Years Ended

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Akerna Common Warrants

 

 

21,739

 

 

 

 

 

 

 

Akerna Underwriter Warrants

 

 

1,087

 

 

 

 

 

 

 

Total

 

 

22,826

 

 

 

 

 

 

 

 

The following is a reconciliation of the denominator of the basic and diluted net income (loss) per share of common stock computations for the periods presented:

 

 

 

Years Ended

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

(in USD thousands, except share and per share amounts)

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Numerator:

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(153,171

)

 

$

428,935

 

 

$

39,613

 

Less: loss from discontinued operations (net of income tax benefit of nil, $1.6 million, and nil, respectively)

 

 

 

 

 

4,816

 

 

 

 

Net (loss) income from continuing operations – basic

 

$

(153,171

)

 

$

433,751

 

 

$

39,613

 

Effect of dilutive shares on net income:

 

 

 

 

 

 

 

 

 

Gryphon warrants revaluation included in net income (loss) (net of income tax benefit) (1)

 

 

(303

)

 

 

 

 

 

 

Net (loss) income from continuing operations – diluted

 

$

(153,474

)

 

$

433,751

 

 

$

39,613

 

Loss from discontinued operations (net of income tax benefit of nil, $1.6 million, and nil respectively)

 

$

 

 

$

(4,816

)

 

$

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares of Class A common stock

 

 

172,802,535

 

 

 

159,537,377

 

 

 

159,537,377

 

Weighted average shares of Class B common stock

 

 

732,224,903

 

 

 

732,224,903

 

 

 

732,224,903

 

Total weighted average shares of common stock outstanding – basic

 

 

905,027,438

 

 

 

891,762,280

 

 

 

891,762,280

 

Dilutive impact of Gryphon Warrants

 

 

50,610

 

 

 

 

 

 

 

Weighted average shares of common stock outstanding – diluted

 

 

905,078,048

 

 

 

891,762,280

 

 

 

891,762,280

 

Net (loss) income per share of common stock:

 

 

 

 

 

 

 

 

 

Basic from continuing operations (2)

 

$

(0.17

)

 

$

0.49

 

 

$

0.04

 

Basic from discontinued operations (3)

 

$

 

 

$

(0.01

)

 

$

 

Diluted from continuing operations (4)

 

$

(0.17

)

 

$

0.49

 

 

$

0.04

 

Diluted from discontinued operations (5)

 

$

 

 

$

(0.01

)

 

$

 

 

 

 

 

 

 

 

 

 

 

(1) Calculated as the net adjustment from warrant liability fair value remeasurement from Gryphon Warrants, net of tax

 

(2) Calculated as net income from continuing operations – basic, divided by weighted average shares of common stock outstanding – basic

 

(3) Calculated as loss from discontinued operations divided by weighted average shares of common stock outstanding – basic

 

(4) Calculated as net income from continuing operations – diluted, divided by weighted average shares of common stock outstanding – diluted

 

(5) Calculated as loss from discontinued operations divided by weighted average shares of common stock outstanding – diluted

 

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2023Apr 1, 2024
2022Mar 21, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.