Iveda Solutions, Inc. Earnings Per Share Disclosure
NOTE 12 EARNINGS (LOSS) PER SHARE
The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required by ASC No. 260, Earnings per Share.
Basic earnings per share (EPS) is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. We had net losses for the years ended December 31, 2015 and 2014 and the effect of including dilutive securities in the earnings per common share would have been anti-dilutive for the purpose of calculating EPS. Accordingly, all options, warrants, and shares potentially convertible into common shares were excluded from the calculation of diluted earnings per share for the years ended December 31, 2015 and 2014. Total common stock equivalents that could be convertible into common stock were 21,615,767 and 13,706,369 for 2015 and 2014, respectively.
| 2015 | 2014 | |||||||
| Basic EPS | ||||||||
| Net Loss | $ | (3,785,014 | ) | $ | (5,657,173 | ) | ||
| Weighted Average Shares | 27,568,989 | 27,054,450 | ||||||
| Basic Loss Per Share | $ | (0.14 | ) | $ | (0.21 | ) | ||
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.