INTELLIGENT PROTECTION MANAGEMENT CORP. Earnings Per Share Disclosure
10. Net (Loss) Income Per Share
Basic earnings and net (loss) income per share are computed by dividing the net (loss) income available to common stockholders by the weighted average number of common shares outstanding during the period as defined by ASC Topic 260, Earnings Per Share. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options (using the treasury stock method). To the extent stock options are antidilutive, they are excluded from the calculation of diluted loss per share. For the year ended December 31, 2025, 687,895 of shares issuable upon the exercise of outstanding stock options were not included in the computation of diluted net loss per share from operations because their inclusion would be antidilutive. For the year ended December 31, 2024, 618,818 shares issuable upon the exercise of outstanding stock options were included in the computation of diluted net income per share from operations because their inclusion would be dilutive.
The following table summarizes the net loss per share calculation for the periods presented:
| Years Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net loss from continuing operations | $ | (1,956,536 | ) | $ | (4,268,675 | ) | ||
| Net loss from discontinued operations | $ | (4,157,534 | ) | |||||
| Net loss from operations – basic and diluted | $ | (1,956,536 | ) | $ | (8,426,209 | ) | ||
| Weighted average shares outstanding – basic and diluted | 13,146,786 | 9,227,197 | ||||||
| Per share data: | ||||||||
| Basic and diluted from continuing operations | $ | (0.15 | ) | $ | (0.48 | ) | ||
| Basic and diluted from discontinued operations | $ | (0.43 | ) | |||||
| Basic and diluted from operations | $ | (0.15 | ) | $ | (0.91 | ) | ||
| For the Year Ended December 31, 2025 | ||||||||
| Series A Preferred Stock | Common Stock | |||||||
| Allocation of net loss | $ | (593,658 | ) | $ | (1,362,877 | ) | ||
| Weighted average shares outstanding – basic and diluted | 3,989,041 | 9,157,745 | ||||||
| Net loss per share – basic and diluted | $ | (0.15 | ) | (0.15 | ) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2016 | Mar 28, 2017 | |
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.