FLEXIBLE SOLUTIONS INTERNATIONAL INC Earnings Per Share Disclosure
| 2024 | 2023 | |||||||
| Net income attributable to controlling interest | $ | 3,038,529 | $ | 2,775,864 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 12,454,957 | 12,434,886 | ||||||
| Diluted | 12,680,668 | 12,489,467 | ||||||
| Net income per common share attributable to controlling interest: | ||||||||
| Basic and diluted | $ | $ | ||||||
Certain stock options whose terms and conditions are described in Note 14, “Stock Options” could potentially dilute basic EPS in the future, but were not included in the computation of diluted EPS because to do so would have been anti-dilutive. Those anti-dilutive options are as follows.
| 2024 | 2023 | |||||||
| Anti-dilutive options | 745,000 | 740,000 | ||||||
There were preferred shares issued and outstanding during the years ended December 31, 2024 and 2023.
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.