SolarMax Technology, Inc. Earnings Per Share Disclosure
23. Net Income (Loss) Per Share
The following table presents the calculation of the Company's basic and diluted net income (loss) per share for the years ended December 31, 2025 and 2024:
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| Years Ended December 31, |
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| 2025 |
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| 2024 |
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Numerator |
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Net income (loss) |
| $ | (6,325,368 | ) |
| $ | (34,962,336 | ) |
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Denominator |
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Weighted average shares used to compute net loss per share, basic |
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| 49,976,772 |
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| 44,342,876 |
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Weighted average shares used to compute net loss per share, diluted |
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| 49,976,772 |
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| 44,342,876 |
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Basic net income (loss) per share |
| $ | (0.13 | ) |
| $ | (0.79 | ) |
Diluted net income (loss) per share |
| $ | (0.13 | ) |
| $ | (0.79 | ) |
For the year ended December 31, 2025, outstanding options to purchase 6,189,749 shares of common stock and 5,984,893 shares issuable upon conversion of convertible notes were excluded from the computation of diluted earnings per share as the impact of including those shares would be anti-dilutive.
For the year ended December 31, 2024, outstanding options to purchase 6,189,749 shares of common stock and 5,950,381 shares issuable upon conversion of convertible notes were excluded from the computation of diluted earnings per share as the impact of including those shares would be anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 6, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
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.