Candel Therapeutics, Inc. Earnings Per Share Disclosure
16. Net Loss Per Share
Net Loss Per Share
Basic and diluted net loss per share attributable to common stockholders was computed by dividing net loss by the weighted-average common shares outstanding for the period, including the pre-funded warrants given their nominal exercise price (in thousands, except share and per share data):
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YEAR ENDED DECEMBER 31, |
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2024 |
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2023 |
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Numerator: |
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Net loss |
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$ |
(55,177 |
) |
|
$ |
(37,939 |
) |
Denominator: |
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|
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Weighted-average shares of common stock outstanding, basic and diluted |
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|
31,675,076 |
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|
|
28,935,289 |
|
Net loss per share, basic and diluted |
|
$ |
(1.74 |
) |
|
$ |
(1.31 |
) |
The Company’s potentially dilutive securities have been excluded from the computation of dilutive net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same.
The Company excluded the following potential shares of common stock from the computation of diluted net loss per share because including them would have had an anti-dilutive effect.
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YEAR ENDED DECEMBER 31, |
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2024 |
|
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2023 |
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Outstanding warrants for common stock |
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|
7,507,708 |
|
|
|
7,507,708 |
|
Outstanding stock options (as converted to common stock) |
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|
4,486,181 |
|
|
|
5,666,621 |
|
Unvested restricted stock |
|
|
330,779 |
|
|
|
2,526,432 |
|
|
|
|
12,324,668 |
|
|
|
15,700,761 |
|
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.