Advanced Flower Capital Inc. Earnings Per Share Disclosure
| Years ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income from continuing operations | $ | 13,862,137 | $ | 20,717,377 | |||||||
| Dividends paid on preferred stock | (7,500) | (15,000) | |||||||||
| Dividends paid on unvested restricted stock | (440,028) | (262,394) | |||||||||
| Net income from continuing operations attributable to common shareholders | 13,414,609 | 20,439,983 | |||||||||
| Net income from discontinued operations | 2,922,068 | 234,622 | |||||||||
| Net income attributable to common shareholders | 16,336,677 | 20,674,605 | |||||||||
| Divided by: | |||||||||||
| Basic weighted average shares of common stock outstanding | 20,821,239 | 20,321,091 | |||||||||
| Weighted average unvested restricted stock and dilutive stock options | 67,741 | 24,828 | |||||||||
| Diluted weighted average shares of common stock outstanding | 20,888,980 | 20,345,919 | |||||||||
| Basic earnings per share | |||||||||||
| Continuing operations | $ | 0.64 | $ | 1.01 | |||||||
| Discontinued operations | $ | 0.14 | $ | 0.01 | |||||||
| Total basic weighted average earnings per common share | $ | 0.78 | $ | 1.02 | |||||||
| Diluted earnings per share | |||||||||||
| Continuing operations | $ | 0.64 | $ | 1.01 | |||||||
| Discontinued operations | $ | 0.14 | $ | 0.01 | |||||||
| Total diluted weighted average earnings per common share | $ | 0.78 | $ | 1.02 | |||||||
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.