Acrivon Therapeutics, Inc. Earnings Per Share Disclosure
11. Net Loss Per Share
Basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2024, and 2023 was calculated as follows (in thousands, except share and per share amounts):
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December 31, |
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2024 |
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2023 |
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Numerator: |
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Net loss attributable to common stockholders—basic and diluted |
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$ |
(80,556 |
) |
|
$ |
(60,388 |
) |
Denominator: |
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Weighted-average common stock outstanding—basic and diluted |
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33,791,817 |
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22,078,190 |
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Net loss per share—basic and diluted |
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$ |
(2.38 |
) |
|
$ |
(2.74 |
) |
As described in Note 8, the Pre-Funded Warrants to purchase up to an aggregate of 7,060,000 shares of the Company’s common stock at a purchase price of $8.499 per Pre-Funded Warrant were classified as a component of permanent equity in the Company's consolidated balance sheet as they are freestanding financial instruments that are immediately exercisable, do not embody an obligation for the Company to repurchase its own shares and permit the holders to receive a fixed number of shares of common stock upon exercise. All of the shares underlying the Pre-Funded Warrants have been included in the weighted-average number of shares of common stock used to calculate basic and diluted net loss per common share for the year ended December 31, 2024, because the shares may be issued for little or no consideration, are fully vested, and are exercisable after the original issuance date of the Pre-Funded Warrants.
The Company’s potentially dilutive securities, which include stock options and RSUs, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The
Company excluded the following shares from the computation of diluted net loss per share attributable to common stockholders as of December 31, 2024 and 2023 because including them would have had an anti-dilutive effect:
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December 31, |
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2024 |
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2023 |
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Options to purchase common stock |
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4,485,546 |
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3,117,042 |
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Unvested restricted stock units |
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975,550 |
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1,759,918 |
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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.