Armata Pharmaceuticals, Inc. Earnings Per Share Disclosure
5. Net Loss per Share
The computation of basic EPS is based on the weighted-average number of the Company’s Common Stock outstanding. The computation of diluted EPS is based on the weighted-average number of the Company’s Common Stock outstanding and potential dilutive Common Stock. Diluted EPS is computed using the more dilutive of the treasury stock method, which reflects the potential dilution that would occur if securities or other contracts to issue Common Stock were exercised or converted to the Company’s Common Stock. Common Stock options, warrants and unvested restricted stock units were not included in dilutive EPS as their impact would be antidilutive.
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2024 and 2023 (in thousands, except share and per share data):
Year Ended December 31, | |||||||
| 2024 |
| 2023 | ||||
Numerator: |
|
|
|
|
| ||
Net loss attributable to common stockholders, basic | $ | (18,916) | $ | (69,045) | |||
Gain from change in fair value of the Convertible Loan | (31,399) | — | |||||
Gain on debt and the Convertible Loan extinguishments | (2,166) | — | |||||
Net loss attributable to common stockholders, diluted | $ | (52,481) | $ | (69,045) | |||
Denominator: | |||||||
Weighted average shares outstanding, basic | 36,160,848 | 36,075,555 | |||||
Shares issuable upon the conversion of the Convertible Loan | 22,899,123 | — | |||||
Weighted average common shares outstanding, diluted |
| 59,059,971 |
| 36,075,555 | |||
Net loss per share, basic | $ | (0.52) | $ | (1.91) | |||
Net loss per share, diluted | $ | (0.89) | $ | (1.91) | |||
The following outstanding securities as of December 31, 2024 and 2023 have been excluded from the computation of diluted weighted average shares outstanding, as they would have been anti-dilutive:
| December 31, 2024 |
| December 31, 2023 |
| |
Outstanding stock options |
| 3,755,965 |
| 3,165,216 | |
Unvested restricted stock units | 220,000 | 200,000 | |||
Shares issuable upon the conversion of the Convertible Loan (1) | — | 21,293,861 | |||
Outstanding warrants | 19,365,847 | 19,365,847 | |||
Total |
| 23,341,812 |
| 44,024,924 |
|
(1) The Company determined the number of shares issuable upon the conversion of the Convertible Loan as of December 2023, based on the Convertible Loan principal amount of $30.0 million, accrued and unpaid interest of $2.4 million, calculated at an annual interest rate of 8%, converted at $1.52 per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 21, 2025 | Showing above |
| 2022 | Mar 16, 2023 | |
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.