6. Net Loss Per Share

 

A reconciliation of the components of basic and diluted net loss per share of common stock is presented in the tables below:

 

 

Fiscal Year Ended

 

 

Six Months Ended

 

 

Fiscal Year Ended

 

 

December 31, 2024

 

 

December 31, 2023

 

 

June 30, 2023

 

Net loss attributable to common stock

 

$

(38,030,291

)

 

$

(40,766,308

)

 

$

(39,741,300

)

Weighted average shares for basic EPS

 

 

10,896,228

 

 

 

9,180,032

 

 

 

7,087,027

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

Weighted average shares for diluted EPS

 

 

10,896,228

 

 

 

9,180,032

 

 

 

7,087,027

 

Basic EPS

 

$

(3.49

)

 

$

(4.44

)

 

$

(5.61

)

Diluted EPS

 

$

(3.49

)

 

$

(4.44

)

 

$

(5.61

)

 

There were 100,000 options and 726,375 warrants outstanding as of December 31, 2024. There were 100,000 options and 401,000 warrants outstanding as of December 31, 2023 and June 30, 2023. The options and warrants were not included in the computation of diluted earnings per share for the fiscal year ended December 31, 2024, six months ended December 31, 2023 and fiscal year ended June 30, 2023 due to being anti-dilutive.

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.