Earnings Per Share

9 Months Ended

Sep. 30, 2017

17. EARNINGS PER SHARE

Basic earnings per share are the result of dividing the Company’s net income (or net loss) by the weighted average number of shares outstanding for the contemplated period. Diluted earnings per share are calculated applying the treasury stock method. When there is a net income dilutive effect, all stock-based compensation awards or participating financial instruments are considered. When the Company posts a loss, basic loss per share equals diluted loss per share. The following table depicts how the denominator for the calculation of basic and diluted earnings per share was determined under the treasury stock method.

Earnings per share

Three-month period ended

September 30, 2017

Three-month period ended September 30, 2016

Nine-month period ended September 30, 2017

Nine-month period ended September 30, 2016

Company posted

Net loss

Basic weighted average shares outstanding

104,741,603

101,740,479

105,905,770

99,707,537

Dilutive effect of common stock equivalents

None

Dilutive weighted average shares outstanding

104,741,603

101,740,479

105,905,770

99,707,537

A total of 2,900,000 common shares have vested, that had not been issued, as of the balance sheet date are included in the basic weighted average of shares outstanding.

The following table shows the number of stock equivalents of SunVesta Inc. that were excluded from the computation of diluted earnings per share for the respective period because the effect would have been anti-dilutive.

Earnings per share	Three-month period ended September 30, 2017		Three-month period ended September 30, 2016		Nine-month period ended September 30, 2017		Nine-month period ended September 30, 2016
Options to Hans Rigendinger		10,000,000		10,000,000		10,000,000		10,000,000
Options to Dr. M. Rössler		10,000,000		10,000,000		10,000,000		10,000,000
Options to Josef Mettler								12,000,000
Total Options		20,000,000		20,000,000		20,000,000		32,000,000

Shares to Hans Rigendinger (retention bonus – non vested)		2,500,000		5,000,000		2,500,000		5,000,000
Shares to Josef Mettler’s estate (retention award)		0		0		0		15,000,000
Shares to Howard Glicken and José Maria Figueres (retention award)		400,000		400,000		400,000		400,000
Total Shares		2,900,000		5,400,000		2,900,000		20,400,000

Total Options and Shares		22,900,000		25,400,000		22,900,000		52,400,000

Options related to Convertible CHF bonds: Each bond in the principal amount of CHF 5,000 can be converted on any business day during the conversion period into 625 common shares of SunVesta Holding AG at a conversion price equal to CHF 8.

A number of 1,498,928 stock equivalents of SunVesta Holding AG associated with the Convertible CHF Bond were excluded from the computation of diluted earnings per share for the nine-month period ended September 30, 2017, because the effect would have been anti-dilutive (4,259,465 for the nine-month period ended September 30, 2016).

SUNVESTA, INC. 10-Q