Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

The Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to holders of the Common Stockholders divided by the weighted average of the common shares outstanding for the period. Diluted EPS is like basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., preferred shares, warrants and stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Loss per common share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the respective periods. Basic and diluted loss per common share was the same for all periods presented because warrants, RSU’s and options outstanding were anti-dilutive, for a total of 1,121,211 shares and 948,188, respectively.

Basic and fully diluted earnings (loss) per share is calculated as follows for the nine months ended September 30, 2024 and 2023:

	September 30, 2024			September 30, 2023
	Common shares			Common shares
Net loss	$	(4,025,361	)	$	(939,825	)
Weighted average shares outstanding – basic and diluted		6,251,158			6,250,002
Net loss per share – basic and diluted	$	(0.64	)	$	(0.15	)

The following financial instruments were not included in the diluted loss per share calculations as of September 30, 2024 and December 31, 2023 because their effect was anti-dilutive:

	September 30, 2024		December 31, 2023
Warrants to purchase common stock		205,293		205,293
Options		491,262		318,239
Restricted stock awards units		424,656		424,656
Total		1,121,211		948,188