NOTE 6—NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE—BASIC AND DILUTED

 

The following information sets forth the computation of basic and diluted net change in net assets resulting from operations per common share, pursuant to ASC 260, for the years ended December 31, 2025, 2024 and 2023.

 

   2025   2024   2023 
   Year Ended December 31, 
   2025   2024   2023 
Earnings per common share–basic:               
Net change in net assets resulting from operations  $48,808,336  $(38,124,247)  $5,066,822
Weighted-average common shares–basic   24,225,991    23,901,805    26,222,667 
Earnings per common share–basic  $2.01  $(1.60)  $0.19
Earnings per common share–diluted:               
Net change in net assets resulting from operations  $48,808,336  $(38,124,247)  $5,066,822
Adjustment for interest and amortization on 6.50% Convertible Notes due 2029(1)   2,499,717         
Net change in net assets resulting from operations, as adjusted  $51,308,053  $(38,124,247)  $5,066,822
Adjustment for dilutive effect of 6.50% Convertible Notes due 2029(1)   4,563,109         
Weighted-average common shares outstanding–diluted(1)   28,789,100    23,901,805    26,222,627 
Earnings per common share–diluted  $1.78  $(1.60)  $0.19

 

(1)For the year ended December 31, 2024, 3,870,969 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net decrease in net assets resulting from operations per common shares because the effect of these shares would have been anti-dilutive. For the year ended December 31, 2023, there were no potentially dilutive securities outstanding.

 

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 12, 2025
2023Mar 14, 2024
2022Mar 16, 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.