Sharplink, Inc. Earnings Per Share Disclosure

Note 11 – Net Income (Loss) Per Share

 

Basic net income (loss) per share is calculated by dividing net income (loss) available to Common Stockholders, adjusted for premium purchase contract warrants (see Note 7 - Warrants) that have been determined to represent participating securities as they contain non-forfeitable rights to share in dividends alongside Common Stock, by the weighted-average number of Common Stock outstanding during the period excluding the effects of any potentially dilutive securities. The Company issued prefunded warrants, during 2025 and 2024, that are exercisable at a nominal price and exercisable at any time by the holder (see Note 7 - Warrants). As such, the prefunded warrants have been determined to be equivalent to Common Stock and included in basic weighted-average Common Stock outstanding. As there was a net loss in continuing operations, there was no impact from the premium purchase contract warrants on net loss per share. Diluted net loss per share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional Common Stock that would have been outstanding if potential shares of Common Stock had been issued if such additional Common Stock were dilutive.

 

The following table presents dilutive and anti-dilutive securities. Since there was a net loss from both continuing operations and discontinued operations for the twelve months ended December 31, 2025, all securities presented below were excluded from weighted average shares outstanding.

 Schedule of Computation of Diluted Shares Outstanding

		Year Ended December 31, 2025
Dilutive:
Premium purchase contract warrants			4,500,000
Strategic advisor and placement agent warrants			6,219,032
Total Dilutive			10,719,032
Anti-Dilutive:
Stock options			8,906
SportsHub warrants			252
Restricted Stock Units			1,594,205
Total Anti-dilutive			1,603,363

  

 

As the Company had a net loss from continuing operations and net income for discontinued operations for the twelve months ended December 31, 2024, the following presents dilutive and anti-dilutive securities. For continuing operations, since there was a net loss, all securities presented below were excluded from weighted average shares outstanding. For discontinued operations, dilutive securities presented below were included in the net income per share calculation and the anti-dilutive securities were excluded in weighted average shares outstanding:

 

		Year Ended December 31, 2024
Dilutive:
Prefunded warrants			39,130
Warrants			11,187
Total Dilutive			50,317
Anti-Dilutive:
Stock options			9,022
Series A-1 preferred stock			601
Series B preferred stock			1,040
SportsHub warrants			252
Restricted Stock Units			12,501
Total Anti-dilutive			23,416

 

The calculation of the net income (loss) per share and weighted-average shares of the Company’s Common Stock outstanding for the periods presented are as follows:

 

 Schedule of Income (Loss) Per Share and Weighted-average

		For the Year Ended December 31,
		2025				2024
Net income (loss) from continuing operations		$	(734,516	)		$	(4,474	)
Net income (loss) from discontinued operations, net of tax, available to common stockholders			(71	)			14,573
Net income (loss) available to common stockholders		$	(734,587	)		$	10,099
Basic weighted-average shares for continuing and discontinued operations			99,719,495				286,939
Diluted weighted average shares			99,719,495				337,255
Basic:
Net income (loss) from continuing operations per share		$	(7.37	)		$	(15.59	)
Net income (loss) from discontinued operations per share			-				50.79
Net income (loss) per share		$	(7.37	)		$	35.20
Fully Diluted:
Net income (loss) from continuing operations per share		$	(7.37	)		$	(15.59	)
Net income (loss) from discontinued operations per share			-				43.21
Net income (loss) per share		$	(7.37	)		$	27.62