Cellectar Biosciences, Inc. Earnings Per Share Disclosure
9. NET LOSS PER SHARE
Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock and pre-funded warrants outstanding during the period. The pre-funded warrants are considered common shares outstanding for the purposes of the basic net loss per share calculation due to the nominal cash consideration and lack of other contingencies for issuance of the underlying common shares. Diluted net loss attributable to common stockholders per share is computed by dividing net loss attributable to common stockholders, as adjusted, by the sum of the weighted average number of shares of common stock and the dilutive potential common stock equivalents then outstanding. Potential common stock equivalents consist of stock options, warrants, and convertible preferred shares. In accordance with ASC Topic 260, Earnings per Share, diluted earnings per share are the amount of earnings for the period available to each share of common stock outstanding during the reporting period and to each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares
outstanding during the reporting period. In the quarters ended June 30, 2024, and September 30, 2024, the common warrants issued in October 2022 were dilutive. In all other periods presented, all outstanding warrants were antidilutive.
Year ended December 31, 2024 |
|
| |
Net loss | $ | (44,581,446) | |
Dilutive effect of warrant liability |
| (7,283,786) | |
Net loss allocated to common shares | $ | (51,865,232) | |
Weighted average common shares outstanding - basic |
| 36,622,474 | |
Dilutive effect of warrant liability |
| 521,295 | |
Weighted average common shares outstanding - diluted |
| 37,143,769 | |
Net loss per share - diluted | $ | (1.40) |
The following potentially dilutive securities have been excluded from the computation of diluted net loss per share since their inclusion would have been antidilutive:
Year Ended December 31, | ||||
| 2024 |
| 2023 | |
Warrants |
| 20,381,704 |
| 26,923,243 |
Stock options |
| 4,587,018 |
| 2,351,903 |
Convertible preferred shares |
| 502,320 |
| 3,624,957 |
Total potentially dilutive shares |
| 25,471,042 |
| 32,900,103 |
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.