ACTUATE THERAPEUTICS, INC. Earnings Per Share Disclosure
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Numerator: | ||||||||
| Net loss | $ | (27,285,328 | ) | $ | (24,744,620 | ) | ||
| Denominator: | ||||||||
| Weighted-average shares of common stock outstanding, basic and diluted | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | ) | $ | ) | ||||
The potential dilutive effect of Redeemable Convertible Preferred Stock and Related Party Convertible Notes outstanding during the periods were calculated using the if-converted method assuming the conversion of underlying instruments as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. The potential dilutive effect of outstanding stock options, unvested RSAs, unvested RSUs, and outstanding warrants during the period are calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive.
The number of whole shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect were as follows:
| As of December 31, | ||||||||
| 2024 | 2023 | |||||||
| Redeemable Convertible Preferred Stock | – | 13,710,379 | ||||||
| Options issued and outstanding | 780,539 | 265,566 | ||||||
| Unvested RSAs | 46,463 | 169,027 | ||||||
| Unvested RSUs | 544,111 | – | ||||||
| Warrants issued and outstanding | 255,599 | 170,975 | ||||||
| Total | 1,626,712 | 14,315,947 | ||||||
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.