NOTE 12. EARNINGS LOSS PER SHARE

 

Basic earnings per common share (“EPS”) applicable to common stockholders is computed by dividing earnings applicable to common stockholders by the weighted-average number of common shares outstanding.

 

The following calculates basic and diluted EPS:

 

    2024     2023  
    For the Years Ended December 31,  
    2024     2023  
Loss from continuing operations   $ (9,071,584 )   $ (10,025,268
Deemed dividend     -       (2,539,757 )
Loss from continuing operations, numerator, basic     (9,071,584 )     (12,565,025
Loss from continuing operations, numerator, diluted   $ (9,071,584 )   $ (12,565,025
                 
Weighted average common shares, basic     1,007,020       165,899  
Effect of weighted average vested stock awards     -       -  
Diluted weighted average shares outstanding     1,007,020       165,899  
Basic loss per common share from continuing operations:   $ (9.01 )   $ (75.74 )
Diluted loss per common share from continuing operations:   $ (9.01 )   $ (75.74

 

Additionally, the following are considered anti-dilutive securities excluded from weighted-average shares used to calculate diluted net loss per common share:

 

    2024     2023  
    For the years ended December 31,  
    2024     2023  
Shares subject to outstanding common stock options     16       643  
Shares subject to outstanding Series A warrants     6,647       6,647  
Shares subject to outstanding Series B Warrants and PAW     959       51,939  
Shares subject to outstanding Series G warrants and PA Warrants     3,096       250,774  
Shares subject to unvested stock awards     52       218  

 

 

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.