Note 13: Net Loss Per Share

 

The following table provides reconciliation of net loss per share of common stock:

 

   Year Ended
December 31
   Month Ended
December 31
   Year Ended
November 30
 
   2024   2023   2023 
Numerator               
Net loss for the year/period  $(8,487,081)  $(232,997)  $(9,356,577)
                
Denominator               
Weighted average number of shares, basic and diluted   12,407,646    12,398,709    11,480,346 
                
Net loss per share, basic and diluted  $(0.68)  $(0.02)  $(0.82)

 

The basic and diluted net loss per share is the same as the Company is in a net loss position.

 

The Company’s potentially dilutive securities, including stock options (stock options to purchase 316,050 shares of common stock outstanding as of December 31, 2024; stock options to purchase 82,500 shares of common stock as of December 31, 2023, and November 30, 2023), RSUs (15,050 RSUs outstanding as of December 31, 2024, and nil as of December 31, 2023, and November 30, 2023) and warrants (warrants to purchase 1,740,992 shares of common stock outstanding as of December 31, 2024; warrants to purchase 1,741,292 shares of common stock outstanding as of December 31, 2023, and November 30, 2023), have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

 

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.