Epsilon Energy Ltd. Earnings Per Share Disclosure
13. Net Income Per Share
Basic net income per share is computed on the basis of the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based upon the weighted-average number of common shares outstanding during the period plus the assumed issuance of common shares for all potentially dilutive securities.
The net income used in the calculation of basic and diluted net income per share are as follows:
Year ended December 31, | ||||||
| 2025 | | 2024 | |||
Net (loss) income | $ | (5,798,863) | $ | 1,927,800 | ||
In calculating the net income per share, basic and diluted, the following weighted-average shares were used:
Year ended December 31, | ||||
| 2025 | | 2024 | |
Basic weighted-average number of shares outstanding | 23,020,672 | 21,930,277 | ||
Unvested time-based restricted shares |
| — |
| — |
Diluted weighted-average shares outstanding |
| 23,020,672 |
| 21,930,277 |
We excluded the following shares from the diluted net income per share because their inclusion would have been anti-dilutive.
Year ended December 31, | ||||
| 2025 | | 2024 | |
Anti-dilutive unvested time-based restricted shares | 531,610 | 512,072 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 19, 2025 | |
| 2023 | Mar 21, 2024 | |
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.