NOTE 14. Net Income (Loss) per Share Attributable to Common Stockholders

 

The Company computes net income (loss) per share using the two-class method. Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of stock options, Convertible debentures, PSU’s, and Warrants. Certain Stock options, Convertible debentures, PSU’s, and Warrants were excluded from the computation of diluted net income (loss) per share as including them would have been anti-dilutive.

The following outlines the Company’s basic and diluted loss per share for the year-ended May 31, 2025, and May 31, 2024 (000’s CAD, except share amounts):

 

   Year Ended 
   May 31,
2025
   May 31,
2024
 
Income (loss) per share:        
Basic:  $0.20   $(0.76)
Diluted:  $0.17   $(0.76)
           
Shares used in computing Income (loss) per share:          
Basic:   25,844,200    10,717,378 
Diluted:   30,760,145    10,717,378 

Historical Timeline

Fiscal YearFiled
2025Aug 22, 2025Showing above
2024Aug 15, 2024

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.