CYPHERPUNK TECHNOLOGIES INC. Earnings Per Share Disclosure
11. Net Loss Per Share
Basic and diluted net loss per share for the years ended December 31, 2024 and 2023 was calculated as follows:
Year Ended December 31, | ||||||
| 2024 |
| 2023 | |||
Numerator: |
| |||||
Net loss | $ | (67,555) | $ | (81,414) | ||
Dividend attributable to down round feature of warrants |
| (234) |
| — | ||
Net loss attributable to common stockholders for basic and diluted loss per share | $ | (67,789) | $ | (81,414) | ||
Denominator: | ||||||
Weighted average number of common shares outstanding - basic and diluted |
| 37,550,677 |
| 20,445,109 | ||
Net loss per share attributable to common stockholders - basic and diluted | $ | (1.81) | $ | (3.98) | ||
Included within weighted average common shares outstanding for the years ended December 31, 2024 and 2023, are 2,945,175, and 1,421,768 common shares issuable upon the exercise of the pre-funded warrants and penny warrants, as the warrants are exercisable at any time for nominal consideration, and as such, the shares are considered outstanding for the purpose of calculating basic and diluted net loss per share attributable to common stockholders.
The Company’s potentially dilutive securities include RSUs, stock options and warrants. These securities were excluded from the computations of diluted net loss per share for the years ended December 31, 2024 and 2023, as the effect would be to reduce the net loss per share. The following table includes the potential common shares of common stock, presented based on amounts outstanding at each period end, that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
| Year Ended December 31, | |||
|
| 2024 |
| 2023 |
Restricted stock units to purchase common stock |
| 220,000 | 262,500 | |
Options to purchase common stock | 6,416,744 | 3,384,366 | ||
Warrants to purchase common stock | 3,336,146 | 3,586,371 | ||
| 9,972,890 | 7,233,237 | ||
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.