HeartCore Enterprises, Inc. Earnings Per Share Disclosure
NOTE 18 – NET LOSS PER SHARE
Basic net loss per share is calculated on the basis of weighted average outstanding common shares. Diluted net loss per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and RSUs. Potentially dilutive common shares are determined by applying the treasury stock method to the assumed conversion of share repurchase liability to common shares related to the early exercised stock options and unvested RSUs, and are not included in the calculation of diluted loss per share if their effect would be anti-dilutive.
The computation of basic and diluted net loss per share for the years ended December 31, 2024 and 2023 is as follows:
| For the Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Net loss per share – basic and diluted | ||||||||
| Numerator | ||||||||
| Net loss attributable to HeartCore Enterprises, Inc. common shareholders | $ | (1,481,374 | ) | $ | (4,189,890 | ) | ||
| Denominator | ||||||||
| Weighted average number of common shares outstanding used in calculating net loss per share | 20,940,956 | 20,404,642 | ||||||
| Net loss per share – basic and diluted | $ | (0.07 | ) | $ | (0.21 | ) | ||
For the years ended December 31, 2024 and 2023, the weighted average common shares outstanding are the same for basic and diluted net loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect.
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.