Annovis Bio, Inc. Earnings Per Share Disclosure
(9) Net Loss Per Share
The Company has reported a net loss for the years ended December 31, 2024 and 2023, and the basic and diluted net loss per share attributable to common stockholders are the same for both years because all warrants and stock options have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an antidilutive impact.
The following table sets forth the computation of basic and diluted net loss per common share for the years ended December 31, 2024 and 2023:
| Year Ended | |||||
December 31, | ||||||
| 2024 |
| 2023 | |||
Net loss per share – Basic: |
|
|
| |||
Numerator | ||||||
Net loss | $ | (24,590,375) | $ | (56,204,313) | ||
Denominator |
|
| ||||
Weighted-average common shares outstanding, basic | 12,182,475 | 9,023,138 | ||||
Basic net loss per common share | $ | (2.02) | $ | (6.23) | ||
Net loss per share – Diluted: | ||||||
Numerator | ||||||
Net loss | $ | (24,590,375) | $ | (56,204,313) | ||
Less: gain from change in fair value applicable to dilutive liability-classified warrants | (3,625,893) | — | ||||
Numerator for diluted net loss per share | $ | (28,216,268) | $ | (56,204,313) | ||
Denominator | ||||||
Denominator for basic net loss per share | 12,182,475 | 9,023,138 | ||||
Plus: incremental shares underlying “in the money” liability-classified warrants outstanding | 52,969 | — | ||||
Denominator for diluted net loss per share | 12,235,444 | 9,023,138 | ||||
Diluted net loss per common share | $ | (2.31) | $ | (6.23) | ||
Potentially dilutive securities, whose effect would have been antidilutive, were excluded from the computation of diluted earnings per share for each of the years ended December 31, 2024 and 2023. Total antidilutive securities that were excluded from the computation of diluted weighted-average shares outstanding were as follows:
December 31, | ||||
| 2024 |
| 2023 | |
Stock options | 2,336,020 | 1,954,774 | ||
Warrants | 2,400 | 1,202,400 | ||
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.