Caring Brands, Inc. Earnings Per Share Disclosure
The Company computes basic net income per share using the weighted-average number of shares of common stock outstanding. Diluted net income per share amounts are calculated using the treasury stock method for equity-based compensation awards. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the treasury stock method or if-converted method, as applicable.
As of December 31, 2025, the Company had the following potentially dilutive securities outstanding:
| ● | Convertible debt: shares | |
| ● | Common stock payable: shares | |
| ● | Warrants: 2,340,000 shares | |
| ● | Stock options: 175,000 shares | |
| ● | Restricted stock units: shares |
Potentially dilutive securities include convertible debt, common stock payable, warrants, stock options, and restricted stock units. For the year ended December 31, 2025, these instruments were excluded from the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive.
The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations for the Successor entity:
For the Year Ended December 31, 2025 | Predecessor From January 1 to September 24, 2024 | Successor From September 25 to December 31, 2024 | ||||||||||
| Net loss | $ | (6,278,191 | ) | $ | (654,640 | ) | $ | (862,791 | ) | |||
| Weighted-average common shares outstanding – basic and diluted | NA | |||||||||||
| Net loss per share: | ||||||||||||
| Basic and diluted | $ | ) | NA | $ | ) | |||||||
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.