9.     BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE

 

The following table sets forth the computation of basic and fully diluted net income per common share for the years ended December 31, 2025 and 2024:

        
   2025   2024 
Numerator:          
Net income  $7,551,613   $3,815,907 
Denominator:          
Weighted average common shares:          
Denominator for basic calculation   54,426,584    53,207,555 
Weighted average effects of potentially diluted common stock:          
Stock options (calculated under treasury method)   1,098,925    966,385 
Unvested restricted stock awards   4,123,022    1,414,519 
Denominator for fully diluted calculation  $59,648,531   $55,588,459 
Net income per common share:          
Basic  $0.14   $0.07 
Fully diluted  $0.13   $0.07 

 

Historical Timeline

Fiscal YearFiled
2025Mar 25, 2026Showing above
2024Mar 26, 2025
2023Mar 27, 2024
2022Mar 22, 2023

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.