Sow Good Inc. Earnings Per Share Disclosure
Note 16 - Earnings Per Share
Basic and diluted earnings per share for the three and nine months ended December 31, 2024 and December 31, 2023:
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|
Year Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net loss attributable to common shareholders |
|
$ |
(3,702,216 |
) |
|
$ |
(3,060,433 |
) |
|
|
|
|
|
|
|
||
Basic and diluted weighted average shares |
|
|
9,238,233 |
|
|
|
5,168,339 |
|
|
|
|
|
|
|
|
||
Basic and diluted loss per share |
|
$ |
(0.40 |
) |
|
$ |
(0.59 |
) |
|
|
|
|
|
|
|
||
The table below includes information related to stock options and warrants that were outstanding at the end the twelve months ended December 31, 2024 and December 31, 2023. For periods in which the Company incurred a net loss, these amounts are not included in weighted average dilutive shares because their impact would be anti-dilutive.
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|
Year Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Weighted average stock options |
|
|
2,520,374 |
|
|
|
1,060,717 |
|
Weighted average price of stock options |
|
$ |
20.06 |
|
|
$ |
19.38 |
|
|
|
|
|
|
|
|
||
Weighted average warrants |
|
|
779,813 |
|
|
|
2,084,994 |
|
Weighted average price of warrants |
|
$ |
4.56 |
|
|
$ |
2.50 |
|
|
|
|
|
|
|
|
||
Average price of common stock |
|
$ |
12.01 |
|
|
$ |
5.37 |
|
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.