Nuburu, Inc. Earnings Per Share Disclosure
NOTE 13. NET LOSS PER SHARE
Diluted earnings per share ("EPS") includes the dilutive effect of Common Stock equivalents and is computed using the weighted-average number of Common Stock and Common Stock equivalents outstanding during the reporting period. Diluted EPS during the years ended December 31, 2024 and 2023 excluded Common Stock equivalents because the effect of their inclusion would be anti-dilutive or would decrease the reported loss per share. The following table sets forth securities outstanding that could potentially dilute the calculation of diluted earnings per share:
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Year ended December 31, |
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2024 |
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2023 |
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Stock options outstanding |
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218,430 |
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188,865 |
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Junior Note Warrants |
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859,315 |
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550,000 |
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Public Warrants |
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417,770 |
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417,770 |
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June 2023 Senior Note Warrants |
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335,210 |
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335,210 |
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Pre-Funded Warrants |
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837,116 |
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— |
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August 2024 Warrants Issued with Junior Notes |
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19,892 |
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— |
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Unvested restricted stock units |
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4,562 |
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22,213 |
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If-converted Common Stock from Series A Preferred Stock(1) |
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119,445 |
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151,945 |
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If-converted Common Stock from convertible notes |
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16,657,280 |
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335,661 |
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Total |
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19,469,020 |
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2,001,664 |
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(1) Assumes that all shares of Series A Preferred Stock are converted into Common Stock at a conversion rate equal to $0.25 divided by $5.00 (adjusted by the Reverse Stock Split), representing the maximum number of shares issuable to holders of Series A Preferred Stock.
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.