NOTE 13. NET LOSS PER SHARE

 

The below table is a reconciliation of net loss to net loss attributable to common stockholders. Given the Company’s net loss, basic and diluted net loss per share are the same.

 

   2025   2024 
   Year ended 
   December 31, 
   2025   2024 
Net loss  $(26,275,432)  $(13,727,380)
Series A cumulative preferred stock dividend   (100,000)   (76,712)
Series B stock repurchase   -    3,613,000 
Series C cumulative preferred stock dividend   (450,000)   (82,603)
Net loss attributable to common stockholders  $(26,825,432)  $(10,273,695)

 

The Company excluded the following potential shares from the computation of diluted net loss per share because including them would have had an anti-dilutive effect:

 

   2025   2024 
   December 31, 
   2025   2024 
Outstanding RSUs (a)   54,110    172,465 
Restricted Stock   571,979    386,979 
Warrants   359,500    359,500 
Earnout Shares   490,000    490,000 
Total   1,475,589    1,408,944 

 

(a) As of December 31, 2025 there were an additional 19,869 RSUs that had vested but had not been legally settled into common stock and therefore were included in the basic net income per share. See Note 11 for additional information.

 

The above table excludes any potentially anti-dilutive shares as a result of the $14 million Purchase Option and the Additional Amount Purchase Option (see Note 8). These are excluded as the number of shares issuable cannot be determined until the conditions for issuance are met and the share prices are known upon exercise.

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 2, 2025

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.