25. NET LOSS PER SHARE

 

Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of Class A and Class B common shares outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities, which are convertible into or exercisable for the Company’s Class A common stock, consisted of the following at December 31, 2025 and 2024:

          
   December 31,   December 31, 
   2025   2024 
Convertible preferred stock   177,130,000    9,142,000 
Convertible notes   50,878,000    882,000 
Stock options   6,200,000    - 
Warrants   639,000    477,000 
Total   234,847,000    10,501,000 

 

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024Apr 15, 2025
2023Apr 16, 2024
2022Apr 17, 2023
2021Apr 15, 2022

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.