NextBoat Inc. Earnings Per Share Disclosure
| For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net (loss) income attributable to the Company | (1,871,797 | ) | 991,684 | |||||
| Weighted average number of shares * | ||||||||
| (Loss) earnings per share - Basic and Diluted | $ | ) | ||||||
| * | Due to the anti-dilutive effect, the computation of basic and diluted earnings per share did not include the shares underlying the exercise of RSUs as the Company had a net loss for the year ended December 31,2025. |
| * | For the year ended December 31, 2025, shares of common stock issuable in connection with the acquisition of Boats and Buyers, Inc. (see Note 7) have been included in the computation of basic earnings (loss) per share, as all necessary conditions for issuance have been satisfied. |
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.