Net Income (Loss) per Share

3 Months Ended

Jun. 30, 2025

Net Income (Loss) per Share [Abstract]

12. Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options, Warrants, and Convertible Notes (as defined in Note 7), which would result in the issuance of incremental shares of common stock to the extent such impact is not anti-dilutive.

The following presents a reconciliation of basic and diluted net income (loss) per share:

		Three Months Ended
		June 30,
		2025		2024

Net income (loss)	$	3,042,000	$	(18,085,000	)
Basic shares		19,369,060		19,674,539
Effect of potentially dilutive securities		548,603		-
Diluted shares		19,917,663		19,674,539
Net income (loss) per share:
Basic net income (loss) per share	$	0.16	$	(0.92	)
Diluted net income (loss) per share	$	0.15	$	(0.92	)

Potential common shares that would have the effect of increasing diluted net income per share or decreasing diluted net loss per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted net income (loss) per share. For the three months ended June 30, 2025, there were 1,049,341 of potential common shares not included in the calculation of diluted net income per share because their effect was anti-dilutive. For the three months ended June 30, 2024, there were 2,285,834 of potential common shares not included in the calculation of diluted net loss per share because their effect was anti-dilutive.

In addition, for the three months ended June 30, 2025 and 2024, there were 2,646,535 and 2,405,941, respectively, of potential common shares not included in the calculation of diluted net income (loss) per share under the “if-converted” method for the Convertible Notes because their effect was anti-dilutive. The potential common shares related to the Warrants issued in connection with the Convertible Notes (see Note 7) are anti-dilutive until they become exercisable and as of June 30, 2025, the Warrants were not exercisable.

MOTORCAR PARTS OF AMERICA INC 10-Q