EMPIRE PETROLEUM CORP Earnings Per Share Disclosure
Diluted EPS gives effect to all dilutive potential common shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations, Diluted EPS is computed in the same manner as Basic EPS. In addition, approximately options were excluded in the current period Diluted EPS computation due to the option exercise price exceeding the weighted-average market price of our common shares.
| For the Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Net Loss | $ | (16,197,989 | ) | $ | (12,469,605 | ) | ||
| Basic Weighted-Average Shares | 30,064,856 | 22,718,890 | ||||||
| Effect of Dilutive Securities: | ||||||||
| Restricted Stock Units and Stock Options (1) | ||||||||
| Diluted Weighted-Average Shares | $ | 30,064,856 | $ | 22,718,890 | ||||
| Loss per Common Share | ||||||||
| Basic | $ | (0.54 | ) | $ | (0.55 | ) | ||
| Diluted | $ | (0.54 | ) | $ | (0.55 | ) | ||
| (1) | At December 31, 2024 and 2023, respectively, the Company had approximately 981,314 and 1,361,200 RSUs and options that were excluded from the calculation of net loss per share as their inclusion would be antidilutive due to a net loss for the period. |
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.