The $MSTO filing provides a description as follows (hypothetical):
(LOSS) EARNINGS PER SHARE
Basic EPS is calculated by dividing net income (loss) available to common stockholders by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted EPS is calculated based on the net income (loss) available to common stockholders and the weighted average number of shares of common stock outstanding during the period, adjusted for the effects of all potential dilutive common stock issuances related to options, warrants, restricted stock units and convertible preferred stock.
The dilutive effect of our share-based awards and warrants is computed using the treasury stock method, which assumes all share-based awards and warrants are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. The incremental shares (i.e., the difference between shares assumed to be issued versus purchased), to the extent they would have been dilutive, are included in the denominator of the diluted EPS calculation.
The dilutive effect of our convertible preferred stock is computed using the if-converted method, which assumes conversion at the beginning of the year. However, when a net loss exists, no potential common stock equivalents are included in the computation of the diluted per-share amount because the computation would result in an antidilutive per-share amount. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share for the twelve months ended December 31, 2021 and December 31, 2020 were as follows:
December 31, 2021 December 31, 2020
Total Convertible Debt 37,732,935 27,567,568
Total 37,732,935 27,567,568
