CHINA PHARMA HOLDINGS, INC. Earnings Per Share Disclosure
NOTE 14 – LOSS PER SHARE
The following table presents the computation of basic and diluted net loss per share for the years ended December 31, 2025 and 2024:
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net loss | $ | 3,187,556 | $ | 4,736,365 | ||||
| Denominator: | ||||||||
| Weighted-average shares outstanding | 4,291,427 | 1,746,372 | ||||||
| Basic and diluted loss per share | (0.74 | ) | (2.71 | ) | ||||
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.