Allarity Therapeutics, Inc. Earnings Per Share Disclosure
15. Basic and diluted net loss per share
Basic and diluted net loss per share attributable to common shareholders was as follows:
| Years
Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Numerator: | ||||||||
| Net loss attributable to common shareholders | $ | (20,416 | ) | $ | (21,051 | ) | ||
| Denominator: | ||||||||
| 1,990,748 | 6,805 | |||||||
| $ | (10.26 | ) | $ | (3,093.42 | ) | |||
The Company’s potentially dilutive securities, which include warrants and shares issuable upon conversion of convertible debt, have been excluded from the computation of diluted net loss per share attributable to common shareholders as the effect would be to reduce the net loss per share attributable to common shareholders. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common shareholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:
| As of December 31, | ||||||||
| 2023 | 2022 | |||||||
| Warrants and stock options | 9,540,951 | 2,695,907 | ||||||
| Series A Convertible Preferred stock | 1,530,360 | 7,406,057 | ||||||
| Convertible debt* | 9,071,430 | |||||||
| 11,071,311 | 19,173,394 | |||||||
| * | Estimated based on $2,667 at $0.1825 per share. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 8, 2024 | Showing above |
| 2022 | Mar 13, 2023 | |
| 2021 | May 17, 2022 | |
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.