Pax Global Technology Ltd Just Filed Its Quarterly Report: Net Income (Loss) pe...
Net Income (Loss) per Ordinary Share:
The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income or loss per ordinary share is computed by dividing net income or loss applicable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period plus, to the extent dilutive, the incremental number of ordinary shares to settle warrants, as calculated using the treasury
stock method.
The Company has not considered the effect of the warrants sold in the Public Offering (the “Public Warrants”) and Private Placement to purchase an aggregate of 20,500,000 Class A ordinary shares in the calculation of diluted income (loss) per share, since their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted income (loss) per ordinary share is the same as basic income (loss) per ordinary share for the periods presented.
At June 30, 2022 the Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata among the two classes of shares. Net income (loss) per ordinary share is calculated by dividing the net income (loss) by the weighted average number of ordinary shares outstanding during the respective period.
The following table reflects the net income per share after allocating income between the shares based on outstanding shares.
For the three months ended June 30, 2022
For the six months ended June 30, 2022
Class A
Class B
Class A
Class B
Numerator:
Allocation of income – basic and diluted
3,366,000
842,000
6,358,000
1,590,000
Denominator:
Basic and diluted weighted average ordinary shares outstanding
20,000,000
5,000,000
20,000,000
5,000,000
Basic and diluted net income per ordinary share
$
0.17
$
0.17
$
0.32
$
0.32
The Company did not have two classes of shares outstanding during the periods ended June 30, 2021 and therefore net loss of approximately $49,000 and $54,000, respectively, in the three months ended June 30, 2021 and the period from February 9, 2021 (inception) to June 30
,
2021 was allocated 100% to Class B shareholders, net of shares that were subject to forfeiture, leading to net loss per share
in
that period of $0.01 and $0.01 respectively.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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