NOTE 9 — Earnings Per Share

 

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of Common Shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of dilutive Common Shares outstanding during the period. The Company’s potential dilutive Common Shares include stock options and warrants that are in the money. The Company uses the treasury stock method to compute the dilutive shares related to in-the-money stock options and warrants, to be included in the dilutive earning per share, when the effect is not anti-dilutive.

 

A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings (loss) per share is set forth below:

 

 

 

December 31,

2025

 

 

December 31,

2024

 

Basic earnings per share:

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

Net income/(loss)

 

$(264,953,075)

 

$1,167,726

 

Net income /(loss)available to common stockholders

 

 

(264,953,075)

 

 

1,167,726

 

Denominator:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

40,212,397

 

 

 

6,385,255

 

Effect of dilutive shares

 

 

-

 

 

 

107,020

 

Weighted-average number of common shares outstanding - diluted

 

 

40,212,397

 

 

 

6,492,275

 

Basic earnings (loss)  per share

 

$(6.59)

 

$0.18

 

Diluted earnings (loss) per share:

 

$(6.59)

 

$0.18

 

 

For the year ended December 31, 2025, the following instruments were excluded from the computation of the dilutive earnings per share because their effect would be anti-dilutive:

 

 

 

Outstanding as of

December 31, 2025

 

Stock options

 

 

537,500

 

Warrants

 

 

11,004,394

 

 

For the year ended December 31, 2025, 4,093,682 shares of Pre-Funded Warrant were included in the denominator of both basic and diluted EPS calculation because Pre-Funded Warrants are exercisable for little cash consideration.

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.