| Net Loss Per Share |
Note
9 - Net Loss Per Share
The
Company computes basic net income per share using the weighted-average number of shares of common stock outstanding. Diluted net income
per share amounts are calculated using the treasury stock method for equity-based compensation awards. Diluted net income (loss) per
share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted
into common stock, using the treasury stock method or if-converted method, as applicable.
As
of June 30, 2026, the Company had the following potentially dilutive securities outstanding:
| |
● |
Series
A preferred stock: 10,803,358 shares (See Note 10) |
| |
● |
Common
stock payable: 300,000 shares (See Note 10) |
| |
● |
Warrants:
12,866,317 shares (See Note 10) |
| |
● |
Stock
options: 175,000 shares (See Note 10) |
| |
● |
Restricted
stock units(“RSUs”): 522,592 shares |
Potentially
dilutive securities include convertible debt, common stock payable, warrants, stock options, and restricted stock units. For the three
and six months ended June 30, 2026 and 2025, these instruments were excluded from the computation of diluted net income (loss) per share
as their inclusion would have been anti-dilutive.
The
following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations:
Schedule of Basic and Diluted Net Loss Per Share Attributable to Shareholders
| | |
2026 | | |
2025 | |
| | |
For the Six Months Ended June 30, | |
| | |
2026 | | |
2025 | |
| NUMERATOR: | |
| | |
| |
| Net loss | |
$ | (2,647,202 | ) | |
$ | (1,199,353 | ) |
| Accretion to redeemable preferred equity | |
| 2,062,360 | | |
| - | |
| Dividends on Series A preferred stock | |
| 88,508 | | |
| - | |
| Net loss attributable to common stockholders | |
$ | (4,798,070 | ) | |
$ | (1,199,353 | ) |
| Adjustments: | |
| - | | |
| - | |
| Add back dividends on Series A preferred stock | |
| | | |
| | |
| Net loss attributable to common stockholders | |
$ | (4,798,070 | ) | |
$ | (1,199,353 | ) |
| DENOMINATOR: | |
| | | |
| | |
| Weighted average number of common shares outstanding – Basic and Diluted * | |
| 11,705,727 | | |
| 13,276,331 | |
| LOSSES PER SHARE: | |
| | | |
| | |
| Basic net loss per common share | |
$ | (0.41 | ) | |
$ | (0.09 | ) |
| | |
| | | |
| | |
| Diluted net loss per common share | |
$ | (0.41 | ) | |
$ | (0.09 | ) |
| NUMERATOR: | |
2026 | | |
2025 | |
| | |
For the Three Months Ended June 30, | |
| NUMERATOR: | |
2026 | | |
2025 | |
| Net loss | |
$ | (638,726 | ) | |
$ | (660,583 | ) |
| Accretion to redeemable preferred equity | |
| 217,753 | | |
| - | |
| Dividends on Series A preferred stock | |
| 78,540 | | |
| - | |
| Net loss attributable to common stockholders | |
$ | (935,019 | ) | |
$ | (660,583 | ) |
| Adjustments: | |
| | | |
| | |
| Add back dividends on Series A preferred stock | |
| - | | |
| - | |
| Net loss attributable to common stockholders | |
$ | (935,019 | ) | |
$ | (660,583 | ) |
| DENOMINATOR: | |
| | | |
| | |
| Weighted average number of common shares outstanding - Basic | |
| 8,994,253 | | |
| 13,336,471 | |
| LOSSES PER SHARE: | |
| | | |
| | |
| Basic net loss per common share | |
$ | (0.10 | ) | |
$ | (0.05 | ) |
| | |
| | | |
| | |
| Diluted net loss per common share | |
$ | (0.10 | ) | |
$ | (0.05 | ) |
| * |
Due
to the anti-dilutive effect, the computation of basic and diluted EPS did not include the shares underlying the exercise of warrants,
options, RSUs and Series A preferred stock as the Company had a net loss for the three and six months ended June 30, 2026 and 2025. |
|