NOTE 15 — EARNINGS PER SHARE

 

For the years ended December 31, 2025 and 2024, the effect of potential shares of common stock from the unexercised options, unexercised warrants, and unvested Restricted Stock Units (“RSU”) are included in the computation of diluted net earnings per share. As a result, a total of 37,112 and 151,195 unvested RSU were included in the computation of weighted average number of common shares for the year ended December 31, 2025 and 2024, respectively.

 

For the years ended December 31, 2023, the Company had no stock options, warrants or RSU issued and no impact on diluted earnings per share.

 

The following table presents a reconciliation of basic and diluted net income per share:

 

   2025   2024 
   Years Ended 
   December 31, 
   2025   2024 
         
Net income attributable to the Company  $1,509,341   $1,761,909 
Weighted average number of common shares outstanding – basic   41,603,838    41,010,654 
           
Dilutive securities – unvested RSU   37,112    151,195 
Weighted average number of common shares outstanding – diluted   41,640,950    41,161,849 
Earnings per share – basic  $0.04   $0.04 
Earnings per share – diluted  $0.04   $0.04 

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 26, 2025
2023Apr 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.