HYPERION DEFI, INC. Earnings Per Share Disclosure
Note 4 – Net Loss Per Share of Common Stock
The Company’s net income (loss) per share is calculated using the two-class method in accordance with ASC Topic 260, Earnings Per Share. The two-class method allocates earnings between common stockholders and holders of participating securities. The Company’s Series A Preferred Stock (see Note 13 - Stockholders’ Equity (Deficit) – Securities Purchase Agreement) are deemed to be participating securities due to their rights to participate in dividends with common stock. However, the two-class method has no impact on the calculation of loss per share during periods when the Company has a net loss, because the holders of participating securities are not required to absorb losses.
Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive. There were no dilutive securities outstanding during the years ended December 31, 2025 and 2024. The following table presents the computation of basic and diluted net loss per common share:
| For the Years Ended | |||||
December 31, | ||||||
| 2025 | | 2024 | |||
Numerator: |
| |
| | ||
Net loss attributable to common stockholders | $ | (46,999,218) | $ | (49,818,433) | ||
|
| |||||
Denominator (weighted average quantities): |
|
| ||||
Common shares issued |
| 4,907,637 |
| 830,569 | ||
Add: Undelivered vested restricted shares |
| 92,694 |
| 2,428 | ||
Denominator for basic and diluted net loss per share | 5,000,331 | 832,997 | ||||
| ||||||
Basic and diluted net loss per common share | $ | (9.40) | $ | (59.81) | ||
The following securities are excluded from the calculation of weighted average dilutive shares of common stock because their inclusion would have been anti-dilutive:
December 31, | ||||
| 2025 | | 2024 | |
Options |
| 92,075 |
| 68,183 |
Warrants |
| 33,820,785 |
| 1,166,017 |
Unvested RSU | 1,545,000 | 4,611 | ||
Series A Convertible Preferred | 16,307,691 | — | ||
Convertible debt |
| — |
| 29,096 |
Total potentially dilutive shares |
| 51,765,551 |
| 1,267,907 |
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.