Forward Industries, Inc. Earnings Per Share Disclosure
Basic loss/earnings per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period and includes Pre-Funded Warrants (see Note 8) from their date of issuance. Diluted loss/earnings per share data is computed using the weighted average number of common and dilutive common equivalent shares outstanding during each period. Dilutive common equivalent shares consist of shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method.
A reconciliation of basic and diluted earnings/loss per share is as follows:
| For the Fiscal Years Ended | ||||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Loss from continuing operations | $ | (169,088,979 | ) | $ | (2,166,179 | ) | ||
| Less deemed dividend on Series B Convertible Preferred Stock | (29,444 | ) | – | |||||
| Loss from continuing operations attributable to common shareholders | (169,118,423 | ) | (2,166,179 | ) | ||||
| Income from discontinued operations, net of tax | 2,114,639 | 215,592 | ||||||
| Net loss attributable to common shareholders | $ | (167,003,784 | ) | $ | (1,950,587 | ) | ||
| Denominator: | ||||||||
| Weighted average common shares outstanding | 6,791,173 | 1,101,069 | ||||||
| Dilutive common share equivalents | – | – | ||||||
| Weighted average dilutive shares outstanding | 6,791,173 | 1,101,069 | ||||||
| Basic loss per share : | ||||||||
| Basic loss per share from continuing operations | $ | (24.90 | ) | $ | (1.97 | ) | ||
| Basic earnings per share from discontinued operations | 0.31 | 0.20 | ||||||
| Basic loss per share attributable to common shareholders | $ | (24.59 | ) | $ | (1.77 | ) | ||
| Diluted loss per share: | ||||||||
| Diluted loss per share from continuing operations | $ | (24.90 | ) | $ | (1.97 | ) | ||
| Diluted earnings per share from discontinued operations | 0.31 | 0.20 | ||||||
| Diluted loss per share attributable to common shareholders | $ | (24.59 | ) | $ | (1.77 | ) | ||
The following options and warrants were excluded from the calculation of diluted earnings per share in Fiscal 2025 and Fiscal 2024 because their inclusion would have been anti-dilutive:
| For the Fiscal Years Ended | ||||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Options | 326,600 | 81,400 | ||||||
| Warrants | 13,495,000 | 7,500 | ||||||
| Total potentially dilutive shares | 13,821,600 | 88,900 | ||||||
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.