NOTE 13. NET LOSS PER SHARE OF COMMON STOCK

 

On January 3, 2024, the Company effected a 1:16 reverse stock split of the Company’s common stock (the “2024 Stock Split”) which resulted in a reduction in the number of outstanding shares of common stock, warrants, stock options and restricted share units and a proportionate increase in the value of each share or strike price of the warrants and stock options.

 

On January 29, 2025, the Company effected a reverse stock split at a ratio of 1:335 which resulted in a reduction in the number of outstanding shares of common stock, warrants, stock options and restricted share units and a proportionate increase in the value of each share or strike price of the warrants and stock options.

 

On March 27, 2025, the Company effected a reverse stock split at a ratio of 1:27 which resulted in a reduction in the number of outstanding shares of common stock, warrants, stock options and restricted share units and a proportionate increase in the value of each share or strike price of the warrants and stock options.

 

The retrospective effect of the reverse stock splits has been incorporated on a retrospective basis in the tabular disclosures of loss per share and weighted average outstanding shares for the fiscal years 2025 and 2024 herein.

 

Basic and diluted net loss per share is computed by dividing net loss attributable to stockholders by the weighted average number shares of common stock outstanding, vested restricted stock units, and pre-funded warrants during the year. Potentially dilutive outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for loss periods presented because including them would have been antidilutive.

 

A post-2025 Stock Splits reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to stockholders follows:

          
   December 31, 
   2025   2024 
Numerator:        
Net loss allocable to common stockholders used to compute basic and diluted loss per common share  $(7,240,312)  $(7,052,602)
Denominator:          
Weighted average shares outstanding used to compute basic and dilutive loss per share   532,036    943 

 

The following outstanding potentially dilutive securities were excluded from the calculation of dilutive loss per share attributable to common stockholders because their impact would have been antidilutive for the period presented:

          
   December 31, 
   2025   2024 
Preferred stock (as-converted)       386 
Warrants and Pre-funded Warrants   57,293    1,312 
Restricted stock units       1 
Stock options   5,685    19 
    62,978    1,718 

 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Apr 9, 2025
2023Mar 28, 2024
2022Feb 27, 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.