Earnings Per Share
Basic earnings per share ("EPS") is calculated by dividing net income attributable to the Company's common shareholders by the weighted average number of common shares outstanding for the period. The following table provides a reconciliation of the numerator and denominator of the EPS calculations:
 Years ended December 31,
 20252024
Numerator    
Net (loss) income$(1,871,000)$4,545,000 
Preferred stock dividends(6,067,000)(10,295,000)
Deemed contributions on preferred stock18,788,000 7,629,000 
Net income attributable to common shares$10,850,000 $1,879,000 
Denominator    
Weighted average number of common shares outstanding13,718,169 13,718,169 
Net income per common share attributable to common shareholders$0.79 $0.14 

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.