Atea Pharmaceuticals, Inc. Earnings Per Share Disclosure
13. Net Loss Per Share
Basic and diluted earnings per share are calculated as follows:
|
|
For the Year Ended |
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|
|
|
|
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|
|
2024 |
|
|
2023 |
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||
Net loss |
|
$ |
(168,385 |
) |
|
$ |
(135,956 |
) |
Weighted average common shares outstanding, basic and diluted |
|
|
84,264,715 |
|
|
|
83,389,750 |
|
Net loss per share - basic and diluted |
|
$ |
(2.00 |
) |
|
$ |
(1.63 |
) |
Stock options for the purchase of 20,166,069 shares, 2,523,052 restricted stock units, 1,782,870 performance-based restricted stock units and 30,062 ESPP shares were excluded from the computation of the net loss per share for the year ended December 31, 2024, due to the net loss during the period as their effect is antidilutive.
Stock options for the purchase of 17,017,319 shares, 2,337,517 restricted stock units, 724,970 performance-based restricted stock units and 30,254 ESPP shares were excluded from the computation of the net loss per share for the year ended December 31, 2023, due to the net loss during the period as their effect is antidilutive.
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.