5. Earnings Per Share

 

The Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to holders of the Common Stockholders divided by the weighted average of the common shares outstanding for the period. Diluted EPS is like basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., preferred shares, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

Loss per common share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the respective periods. Basic and diluted loss per common share was the same for all periods presented because warrants, RSU’s and options outstanding were anti-dilutive, for a total of 2,799,583 and 1,321,236 shares, respectively.

 

 

Basic and fully diluted earnings (loss) per share is calculated as follows for the years ended December 31, 2025 and 2024:

 

   December 31, 2025   December 31, 2024 
   Common shares   Common shares 
Net loss   (9,158,734)  $(5,861,335)
           
Weighted average shares outstanding – basic and diluted   8,381,444    6,563,255 
           
Net loss per share – basic and diluted   (1.09)  $(0.89)

 

The following financial instruments were not included in the diluted loss per share calculations as of December 31, 2025 and December 31, 2024 because their effect was anti-dilutive:

 

   December 31, 2025   December 31, 2024 
Warrants to purchase common stock   351,528    351,537 
           
Options   2,011,269    545,043 
           
Restricted stock awards units   436,786    424,656 
           
Total   2,799,583    1,321,236 

 

Historical Timeline

Fiscal YearFiled
2025Mar 30, 2026Showing above
2024Mar 31, 2025

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.