Adicet Bio, Inc. Earnings Per Share Disclosure
13. Net Loss Per Share
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):
|
|
Twelve Months Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net loss - basic and diluted |
|
$ |
(117,122 |
) |
|
$ |
(142,658 |
) |
Weighted-average shares used in computing net loss per share, basic and diluted |
|
|
87,866,435 |
|
|
|
43,042,405 |
|
Net loss per share, basic and diluted |
|
$ |
(1.33 |
) |
|
$ |
(3.31 |
) |
The Company's potentially dilutive shares as of December 31, 2024 and 2023, which include outstanding stock options and unvested RSUs, are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the period presented because including them would have been antidilutive:
|
|
As of December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Options to purchase common stock |
|
|
14,965,270 |
|
|
|
9,383,105 |
|
Unvested restricted stock units |
|
|
719,656 |
|
|
|
454,200 |
|
Total |
|
|
15,684,926 |
|
|
|
9,837,305 |
|
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.