NOTE 10 — EARNINGS (LOSS) PER SHARE

 

Basic loss per share (“EPS”) is computed by dividing net loss including deemed dividends by the weighted-average number of common shares outstanding plus unexercised pre-funded warrants. Diluted EPS is computed based on the sum of the weighted-average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable from preferred stock, convertible debt, stock options and warrants.

 

These potentially dilutive securities have been excluded from diluted net loss per share as of December 31, 2024 and 2023 because their effect would be anti-dilutive:

 

   2024   2023 
   For the Years Ended
December 31,
 
   2024   2023 
Net loss used for basic earnings per share  $(6,346,795)  $(13,417,212)
Basic weighted-average common shares outstanding   361,587    101,454 
Dilutive potential shares issuable from preferred stock, convertible debt, stock options and warrants        
Diluted weighted-average common shares outstanding   361,587    101,454 

 

The following potentially dilutive securities have been excluded from diluted net loss per share as of December 31, 2024 and 2023 because their effect would be anti-dilutive:

 

   As of December 31, 
   2024   2023 
Shares of common stock subject to outstanding options   1,870    7,978 
Shares of common stock subject to outstanding warrants (excluding pre-funded warrants)   90,026    61,634 
Shares of common stock subject to outstanding preferred stock   3,437,363     
Shares of common stock subject to outstanding convertible debt       38,875 
Total common stock equivalents   3,529,259    108,487 

 

Historical Timeline

Fiscal YearFiled
2024Jun 30, 2025Showing above
2022May 2, 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.