Aura Biosciences, Inc. Earnings Per Share Disclosure
13. Net Loss Per Share
Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is the same as basic net loss per share for the periods presented since the effects of potentially dilutive securities are antidilutive given the net loss of the Company.
The Company has calculated basic and diluted net loss per share for the years ended December 31, 2024 and 2023 as follows (in thousands, except share and per share data):
|
Year Ended |
|
|||||
|
2024 |
|
|
2023 |
|
||
Numerator: |
|
|
|
|
|
||
Net loss |
$ |
(86,919 |
) |
|
$ |
(76,408 |
) |
Denominator: |
|
|
|
|
|
||
Weighted-average common stock outstanding—basic and diluted |
|
49,650,480 |
|
|
|
39,620,036 |
|
Net loss per common share—basic and diluted |
$ |
(1.75 |
) |
|
$ |
(1.93 |
) |
The following potentially dilutive securities were excluded from the computation of the diluted net loss per share for the periods presented because their effect would have been antidilutive:
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Stock options to purchase common stock |
|
|
5,522,353 |
|
|
|
5,030,351 |
|
Restricted stock units that vest into common stock |
|
|
1,589,042 |
|
|
|
1,093,402 |
|
Warrants to purchase common stock |
|
|
12,686 |
|
|
|
12,686 |
|
Total potential dilutive shares |
|
|
7,124,081 |
|
|
|
6,136,439 |
|
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.