| EARNINGS (LOSS) PER SHARE |
10.EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period. The Company’s Series A Cumulative Convertible Preferred Stock does not participate in net losses. As of August 31, 2026, 127,583 RSUs are vested but not yet settled, which are included in the calculation of basic weighted average number of shares of common stock outstanding, but not included in the number of shares of common stock outstanding in the unaudited condensed consolidated interim statements of changes in stockholders’ equity (deficit). The computations for basic and diluted earnings per share for the periods presented are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the three | | For the three | | For the nine | | For the nine | | | months ended | | months ended | | months ended | | months ended | | | August 31, 2026 | | August 31, 2025 | | August 31, 2026 | | August 31, 2025 | Numerator: | | | | | | | | | | | | | Net income (loss) attributable to common stockholders | | $ | 3,220,386 | | $ | (1,282,331) | | $ | (24,298,670) | | $ | (2,974,432) | Undistributed loss allocated to redeemable common stock | | | — | | | 63,644 | | | — | | | 54,328 | Undistributed earnings allocated to participating securities | | | (256,500) | | | — | | | — | | | — | Net income (loss) attributable to common stockholders (basic) | | | 2,963,886 | | | (1,218,687) | | | (24,298,670) | | | (2,920,104) | Reallocation of undistributed earnings allocated to common stockholders | | | 397 | | | — | | | — | | | — | Net income (loss) attributable to common stockholders (diluted) | | $ | 2,964,283 | | $ | (1,218,687) | | $ | (24,298,670) | | $ | (2,920,104) | | | | | | | | | | | | | | Denominator: | | | | | | | | | | | | | Weighted average number of shares outstanding, common stock – Basic(1) | | | 29,799,474 | | | 18,888,289 | | | 26,363,840 | | | 17,801,944 | Dilutive effect of share-based awards | | | 50,193 | | | — | | | — | | | — | Weighted average number of shares outstanding, common stock – Diluted | | | 29,849,667 | | | 18,888,289 | | | 26,363,840 | | | 17,801,944 | | | | | | | | | | | | | | Earnings (loss) per share, common stock – Basic | | $ | 0.10 | | $ | (0.06) | | $ | (0.92) | | $ | (0.16) | Earnings (loss) per share, common stock – Diluted | | $ | 0.10 | | $ | (0.06) | | $ | (0.92) | | $ | (0.16) |
| (1) | The shares of the Company’s common stock, prior to the de-SPAC (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately 5.8349:1 established in the de-SPAC, as described in Note 3. |
The Company has the following anti-dilutive securities for the nine months ended August 31, 2026 and 2025: | | | | | | | | | | Nine months ended | | August 31, 2026 | | August 31, 2025 | Warrants | | 23,421,916 | | — | Stock options | | 887,375 | | — | RSUs | | 360,374 | | — | Earnout shares | | 1,500,000 | | — | Series A Cumulative Convertible Preferred Stock | | 2,578,904 | | — | | | 28,748,569 | | — |
The following securities are anti-dilutive for the three months ended August 31, 2026 and 2025: | | | | | | | | | | Three months ended | | August 31, 2026 | | August 31, 2025 | Warrants | | 23,421,916 | | — | Stock options | | 887,375 | | — | Earnout shares | | 1,500,000 | | — | Series A Cumulative Convertible Preferred Stock | | 2,578,904 | | — | | | 28,388,195 | | — |
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