Terra Income Fund 6, LLCTFSA

Terra Income Fund 6, LLC Earnings Per Share Disclosure

10-KFiled Mar 15, 20241 min read
Net Increase in Net Assets
Income per share of Terra BDC Common Stock was computed by dividing income available to stockholders by the weighted average number of shares outstanding during the period. Other potentially dilutive shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.
The following information sets forth the computation of the weighted average net increase in net assets per share from operations:
Nine Months Ended September 30, 2022
Basic(Predecessor Basis)
Net decrease in net assets resulting from operations$(1,714,212)
Weighted average common shares outstanding8,110,351 
Net decrease in net assets per share resulting from operations$(0.21)

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.

Other Available Disclosures

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