Note 10. Net Loss Per Share

Basic and diluted net loss per share are computed using the weighted-average number of shares of common stock outstanding for the period. The Company issued a pre-funded warrant in December 2025 (see Note 6). The shares of common stock underlying the pre-funded warrant are included in the calculation of basic and diluted net loss per share because they are considered shares issuable for little or no consideration under ASC 260, Earnings Per Share. The following table shows the computation of basic and diluted net loss per share (in thousands, except share and per share data):

 

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

   Net loss

 

$

(59,851

)

 

$

(73,897

)

Denominator:

 

 

 

 

 

 

      Weighted-average common shares outstanding, basic
          and diluted

 

 

66,692,145

 

 

 

48,163,301

 

      Weighted-average common shares outstanding under the
         pre-funded warrant, basic and diluted

 

 

1,120,000

 

 

 

 

   Weighted-average common shares outstanding, basic
       and diluted

 

 

67,812,145

 

 

 

48,163,301

 

       Net loss per share, basic and diluted

 

$

(0.88

)

 

$

(1.53

)

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been anti-dilutive:

 

 

December 31,

 

 

 

2025

 

 

2024

 

Stock options to purchase common stock

 

 

6,427,777

 

 

 

2,817,751

 

Unvested restricted stock units

 

 

207,897

 

 

 

1,228,876

 

Shares of common stock issuable under
   the ESPP

 

 

23,944

 

 

 

 

Total potentially dilutive shares

 

 

6,659,618

 

 

 

4,046,627

 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 25, 2025

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.