VenHub Global, Inc. Earnings Per Share Disclosure
| 13. | LOSS PER SHARE |
The Company computes earnings loss per share (“EPS”) in accordance with ASC 260, Earnings Per Share. Basic EPS is calculated by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
For all periods presented, the Company reported a net loss, and therefore the effect of all potential common stock equivalents was anti-dilutive. As such, basic and diluted net loss per share are the same.
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net loss | (62,399,163 | ) | (9,392,702 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 37,344,429 | 26,017,018 | ||||||
| Net loss per share – basic and diluted | $ | (1.67 | ) | $ | (0.36 | ) | ||
The following table presents the number of potentially dilutive securities that were excluded from the computation of diluted net loss per share because their effect would have been antidilutive:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Warrants to purchase common stock | 405,162 | |||||||
| Convertible preferred stock | 37,935,029 | |||||||
| Convertible notes payable | 610,260 | 472,373 | ||||||
| Total anitdilutive securities | 1,015,422 | 38,407,402 | ||||||
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.