Note 13 NET LOSS PER SHARE
The following table sets forth the computation of the basic and diluted net loss per share:
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| | | |
| | | |
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| | For the Years Ended December 31, | |
| |
| |
2025
| |
| |
2024
| |
|
Net loss attributable to common shareholders
|
| $ | (2,874,042 | ) |
| $ | (3,771,070 | ) |
| |
| | | |
| | | |
|
Net loss per share:
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| | | |
| | | |
|
Basic
|
| $ | (0.09 | ) |
| $ | (0.12 | ) |
|
Diluted
|
| $ | (0.09 | ) |
| $ | (0.12 | ) |
| |
| | | |
| | | |
|
Weighted average shares outstanding:
|
| | | |
| | | |
|
Basic
|
| | 31,111,780 | |
| | 31,070,548 | |
|
Diluted
|
| | 31,111,780 | |
| | 31,070,548 | |
The following table sets forth all outstanding potentially dilutive securities at the end of the reporting period which were not included in the calculation of diluted earnings per share because their impact would have been antidilutive to the Company’s “control number,” which is income (loss) from operations.
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| | For the Years Ended December 31, | |
| |
| |
2025
| |
| |
2024
| |
|
Potentially dilutive securities:
|
| | | |
| | | |
|
Stock options
|
| | 2,351,040 | |
| | 3,951,796 | |
|
Convertible notes
|
| | — | |
| | 659,533 | |
|
Unvested restricted stock awards and units
|
| | 1,741,248 | |
| | 1,647,248 | |
|
Total
|
| | 4,092,288 | |
| | 6,258,577 | |
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.