NOTE 15. EARNINGS PER SHARE

 

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders for the year ended December 31, 2025:

 

   Year Ended 
   December 31,
2025
 
Basic earnings per share:     
Net income (loss)  $74,004,768 
Weighted-average common shares outstanding   142,298,067 
Basic earnings per share  $0.52 
Diluted earnings per share:     
Net income (loss)  $74,004,768 
Weighted-average common shares outstanding   142,298,067 
Dilutive effect of common share equivalents   - 
Weighted-average common shares outstanding, assuming dilution   142,298,067 
Diluted earnings per share  $0.52 

 

The following table presents the potential common shares outstanding that were excluded from the computation of diluted net earnings per share of common stock as of the periods presented because including them would have been anti-dilutive:

 

   Year Ended 
   December 31,
2025
 
Common stock warrants   17,900,000 
RSUs issued and outstanding   5,984,957 
Total potential common shares excluded from diluted net earnings per share   23,884,957 

 

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.