Dilution Shares, as the case may be (the “Cap Table”), sets forth all of the capital stock of Licensee on a Fully- Diluted Basis as of the date of issuance of the Shares or the Anti-Dilution Shares. There is also a person who is holding a stock option. Stock options usually refer to a specific number of shares, which means that at the time that the option is exercised, a certain amount of shares will be issued. “On fully diluted basis” means that you need to calculate how much you are going to own at the time the options is exercised.

Jul 01, 2017 · Diluted EPS is a metric that discloses the company’s earnings per share determined by using fully diluted outstanding shares, in addition to the ordinary shares of the company. Here diluted outstanding shares refer to the total outstanding shares if all sources of conversion are exercised like warrants, convertible bonds, stock options and so on. Companies with complex capital structures must report both basic EPS and diluted EPS. Calculation of diluted EPS under a complex capital structure allows investors to see the adverse impact on EPS if all diluted securities are converted into common stock. Basic EPS. To calculate EPS in a simple capital structure: