EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

Net earnings (loss) per common share attributable to HeartCore Enterprises, Inc.

EARNINGS (LOSS) PER SHARE

NOTE 14 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is calculated on the basis of weighted-average outstanding common shares. Diluted earnings (loss) per share is computed on the basis of basic weighted-average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

The computation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2022 and 2021 is as follows:

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2022			2021		2022			2021
Earnings (loss) per share – basic Numerator:
Allocation of net income (loss) attributable to HeartCore Enterprises, Inc.’s common shareholders used in calculating earnings (loss) per common share — basic	$	(1,970,934	)	$	186,173	$	(5,253,026	)	$	403,714
Net income (loss) attributable to common shareholders		(1,970,934	)		186,173		(5,253,026	)		403,714
Denominator:
Weighted average number of common shares outstanding used in calculating basic earnings (loss) per share		17,835,027			15,242,454		18,014,483			15,242,454
Denominator used for earnings (loss) per share		17,835,027			15,242,454		18,014,483			15,242,454
Earnings (loss) per share — basic	$	(0.11	)	$	0.01	$	(0.29	)	$	0.03

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2022			2021		2022			2021
Earnings (loss) per share – diluted Numerator:
Allocation of net income (loss) attributable to HeartCore Enterprises, Inc.’s common shareholders used in calculating earnings (loss) per common share — diluted	$	(1,970,934	)	$	186,173	$	(5,253,026	)	$	403,714
Net income (loss) attributable to common shareholders		(1,970,934	)		186,173		(5,253,026	)		403,714
Denominator:
Weighted average number of common shares outstanding used in calculating diluted earnings (loss) per share		17,835,027			15,242,454		18,014,483			15,242,454
Conversion of share repurchase liability to common shares*		-			273,489		-			273,489
Denominator used for earnings (loss) per share		17,835,027			15,515,943		18,014,483			15,515,943
Earnings (loss) per share — diluted	$	(0.11	)	$	0.01	$	(0.29	)	$	0.03

* The share repurchase liability is related to the early exercised stock options that are issued and unvested as of September 30, 2021, see NOTE 11. Each option is convertible into one share of common stock of HeartCore Japan, which is an equivalent of approximately 1,494 shares of common shares of the Company. The liability was settled by issuance of common shares on February 14, 2022.

For the three and nine months ended September 30, 2022, the weighted average shares outstanding are the same for basic and diluted loss per share calculations, as the inclusion of common shares equivalents of 1,636,820 would have an anti-dilutive effect.