Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 341

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1B
Chunk 341
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 per share (2):

    Diluted (loss) earnings per share
     
    $
    (6.06
    )
     
    $
    2.64

    Share-based compensation expense (per diluted share)

    0.40

    0.42

    Interest expense arising from amortization of debt issuance costs (per diluted share) (3)

    0.08

    0.01

    Loss (gain) on debt extinguishment (per diluted share)

    0.12

    (0.27
    )

    Income tax effects (per diluted share) (3)

    (1.26
    )

    (0.02
    )

    Non-GAAP diluted (loss) earnings per share
     
    $
    (6.72
    )
     
    $
    2.78

(1)Income tax effects reflect the net tax effects of share-based compensation, which includes tax benefits and expenses on exercises of stock options and vesting of share-settled restricted stock units, interest expense for amortization of debt issuance costs, and gains and losses on debt extinguishment.

(2)For reconciliation purposes, the non-GAAP diluted earnings (loss) per share calculations use the same weighted average shares outstanding as that used in the GAAP diluted earnings (loss) per share calculations for the same period. For example, in periods of GAAP net loss, otherwise dilutive potential shares of common stock from our share-based compensation arrangements and Convertible Notes are excluded from the GAAP diluted loss per share calculation as they would be antidilutive, and therefore are also excluded from the non-GAAP diluted earnings or loss per share calculation.

(3)For the year ended December 31, 2023, interest expense from the amortization of issuance costs of the Convertible Notes has been added back to the numerator in the GAAP diluted earnings per share calculation (as disclosed in Note 12, Basic and Diluted (Loss) Earnings per Share, to the Consolidated Financial Statements), and therefore the per diluted share effects of the amortization of issuance costs of the Convertible Notes have been excluded from the “Interest expense arising from amortization of debt issuance costs (per diluted share)” and “Income tax effects (per diluted share)” lines in the above reconciliation for the year ending December 31, 2023.

63

Non-GAAP Constant Currency Revenues, Cost of Revenues, and Operating Expenses

We present certain of