13. Loss per Share

 

For the year ended December 31, 2025, loss per share is $3.16 (basic and diluted) compared to that of the year ended December 31, 2024 of $5.84 (basic and diluted) using the weighted average number of shares of 6,143,122 (basic and diluted) and 2,768,732 (basic and diluted), respectively.

 

There are 45,000,000 shares authorized with 9,814,665 and 4,016,205 shares issued and outstanding, at December 31, 2025 and 2024, respectively. The computation of loss per share is based on the weighted average number of shares outstanding during the period in accordance with ASC 260. Shares underlying the Company’s outstanding warrants and convertible promissory notes were excluded due to the anti-dilutive effect they would have on the computation. As of December 31, 2025, the Company has 7,335,008 warrants convertible to 7,365,008 common shares, 472,812 Series C preferred shares convertible to 472,812 common shares, 46,504 shares of restricted stock to be issued, and 298,623 stock options exercisable for 298,623 common shares for a total underlying common shares of 8,137,497. As of December 31, 2024, the Company has 2,291,276 warrants convertible to 2,321,276 common shares, 117,018 restricted stock to be issued, and 192,784 stock options exercisable for 192,784 common shares for a total underlying common shares of 2,631,078.

 

 

Worksport Ltd.

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

 

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 27, 2025
2022Mar 31, 2023
2021Mar 31, 2022

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.