New ERA Energy & Digital, Inc. Earnings Per Share Disclosure
NOTE 14. EARNINGS PER SHARE AND MEMBERS’ UNIT
The Company calculated net income/(loss) per share using the treasury stock method. The table below sets for the computation of basic and diluted net income/(loss) per share for the period presented below.
| For the Year Ended | |||||
December 31, | ||||||
2024 | 2023 | |||||
Net income (loss) | $ | (13,782,384) | $ | 10,145 | ||
Basic weighted average common shares outstanding |
| 12,985,830 |
| 6,080,372 | ||
Diluted weighted average common shares outstanding |
| — |
| — | ||
Basic and diluted weighted average common shares outstanding |
| 12,985,830 |
| 6,080,372 | ||
Basic and diluted net income (loss) per share | $ | (1.06) | $ | 0.00 | ||
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.