NOTE 16 – EARNINGS (LOSS) PER SHARE

 

The Company uses the two class method to compute its basic earnings (loss) per share (“Basic EPS”) and diluted earnings (loss) per share (“Diluted EPS”). The following table summarizes the computations of basic EPS and diluted EPS. The allocation of earnings between Class A and Class B shares is based on their respective economic rights to the undistributed earnings of the Company. Basic EPS is computed as net income (loss) divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur using the treasury stock and if-converted methods, as applicable. The following table provides a reconciliation of the weighted average number of shares used in the calculation of Basic and Diluted EPS.

 

         
    For the year ended
December 31,
 
    2025     2024  
Basic Earnings (Loss) Per Share:                
Net income (loss) attributable to Class A common stockholders   $ (6,322,162 )   $ 400,576  
Net income (loss) attributable to Class B common stockholders     (20,912,963 )     1,431,364  
Total net income (loss) attributable to Snail Inc.   $ (27,235,125 )   $ 1,831,940  
Class A weighted average shares outstanding - basic     8,690,934       8,045,469  
Class B weighted average shares outstanding - basic     28,748,580       28,748,580  
Class A and B basic earnings (loss) per share   $ (0.73 )   $ 0.05  
                 
Diluted Earnings (Loss) Per Share:                
Net income (loss) attributable to Class A common stockholders   $ (6,322,162 )   $ 400,576  
Dilutive effects of convertible notes warrants        
Net income (loss) attributable to Class A common stockholders   $ (6,322,162 )   $ 400,576  
Net income (loss) attributable to Class B common stockholders   $ (20,912,963 )   $ 1,431,364  
Dilutive effects of convertible notes warrants     (376,226 )      
Net income (loss) attributable to Class B common stockholders   $ (21,289,189 )   $ 1,431,364  
Class A weighted average shares outstanding - basic     8,690,934       8,045,469  
Dilutive effects of convertible notes warrants            
Class A weighted average shares outstanding - diluted     8,690,934       8,045,469  
Class B weighted average shares outstanding - basic     28,748,580       28,748,580  
Dilutive effects of convertible note warrants            
Class B weighted average shares outstanding - diluted     28,748,580       28,748,580  
Diluted earnings (loss) per Class A share   $ (0.73 )   $ 0.05  
Diluted earnings (loss) per Class B share   $ (0.74 )   $ 0.05  

 

The following table provides a listing of shares excluded from the calculation of Diluted EPS due to their anti-dilutive effects:

 

   2025   2024   Method
Excluded Shares:             
Restricted stock units outstanding   1,194,024    1,142,284   Treasury
Equity line of credit warrants   334,314    334,314   Treasury
Underwriters warrants       120,000   Treasury
Convertible notes   2,655,608       If-Converted
Convertible notes warrants   1,216,185    1,405,470   Treasury

 

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 26, 2025
2023Apr 1, 2024
2022Mar 29, 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.