MDB Capital Holdings, LLC Earnings Per Share Disclosure

8. Earnings Per Share

 

The Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., preferred shares, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS

 

Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share was the same for all periods presented because stock warrants outstanding were anti-dilutive, for a total of 43 thousand warrants.

 

Earning Earnings per share is presented below for the years ended December 31, 2025 and 2024, respectively.

 

Basic earnings per share is calculated at follows for the years ended December 31, 2025 and 2024 (in thousands, except for share price):

 Schedule of Basic and Fully Diluted 

		For the Years Ended
Basic		December 31, 2025								December 31, 2024
		Class A Common Shares				Class B Common Shares				Class A Common Shares				Class B Common Shares
Net income (loss) attributable to MDB Capital Holdings, LLC		$	(10,768	)		$	(10,477	)		$	5,817			$	5,875
Weighted average shares outstanding – basic			5,023				5,000				4,424				5,000
Net income (loss) per share – basic		$	(2.14	)		$	(2.10	)		$	1.31			$	1.18

 

Fully diluted earnings per share is calculated at follows for the years ended December 31, 2025 and 2024 (in thousands, except for share price):

 

		For the Years Ended
Diluted		December 31, 2025								December 31, 2024
		Class A Common Shares				Class B Common Shares				Class A Common Shares				Class B Common Shares
Net income (loss) attributable to MDB Capital Holdings, LLC		$	(11,714	)		$	(9,531	)		$	7,650			$	4,042
Diluted shares outstanding –diluted			6,145				5,000				9,463				5,000
Net income (loss) per share –diluted		$	(1.91	)		$	(1.91	)		$	0.81			$	0.81

 

Class A Common Shares and Class B common stock are equal for ownership purposes, but Class B shares have five times the voting rights of Class A shares and Class B shares can be exchanged on a one-to-one basis for purposes of sale.